The Latin America data center market by investment is expected to grow at a CAGR of 7.6% during 2021-2026.
The data center market in Latin America is observing an increased investment in modular, containerized, and POD data center deployment. While most facilities in the region are greenfield construction types, the development of modular data centers is growing steadily, thereby contributing to the Latin America data center market growth.
Telecommunication suppliers are increasingly inclined to adopt modular models in Latin America. Modular infrastructure is energy-efficient and is designed to sustain high-rack density. The expenditure to run a modular information center is about 30% less than traditional brick-and-mortar facilities. Therefore, the demand for modular infrastructure is expected to increase during the forecast period.
Latin America Data Center Market Segmentation
The Latin America Data Center Market research report includes a detailed segmentation by IT infrastructure, electrical infrastructure, mechanical infrastructure, cooling technique, cooling systems, general construction, tier standards, geography. The server infrastructure market in Latin America has witnessed strong growth in the last few years.
ODM servers' procurement by hyperscale data center facilities and other enterprises is expected to grow over the next 2-3 years. Server systems based on x86 architecture servers are the most popular systems among enterprises and managed hosting service providers. Most modern operators adopt server infrastructure that matches their workload requirements.
The adoption of static VRLA batteries-based UPS systems designed with up to 750 kVA capacity with N+1 redundant configuration is growing in Chile. Most facilities are equipped with up to 500 kVA VRLA batteries-based UPS systems with N+1 redundant configuration in Colombia. The market is likely to observe the adoption of diesel generators and transfer switches and switchgears with minimum N+N redundancy across data centers.
The demand for monitored and metered PDUs is expected to grow during the forecast period due to the need to reduce OPEX across data centers. Several facilities in Mexico are furnished with up to 1000 kVA UPS systems. Large operators are likely to procure over 1,000 kVA UPS systems. The market will witness the adoption of diesel generators with minimum N+N redundancy across data centers.
Majority of Brazil's facilities utilize water-based cooling systems, especially evaporative, that partially support free cooling. Large data centers in Brazil are expected to include CRAH units, whereas small facilities are likely to adopt CRAC units during the forecast period. There is also increased adoption of evaporative coolers that include partial cooling with indoor CRAC units in a few Latin American countries. Some facility operators use a combination of CRAH and direct expansion cooling techniques. In Chile, data centers use chilled water-cooling systems and air-based cooling systems with CRAH units, free cooling units with CRAC units, or free cooling chillers.
The Latin America market is likely to witness an increase in the construction of greenfield projects. Modular construction is expected to add significant investments to the market during the forecast period. Construction contractors in Chile are generally developing greenfield and modular data centers. In terms of physical security, the adoption of security cameras and access control systems for 24x7 monitoring is growing across the region. The use of infrastructure-based monitoring solutions is also high in the market; however, integrated facility monitoring is expected to grow during the forecast period.
4. out of 185 Tier III certified facilities in Latin America are in Brazil. Most data centers are built with a minimum of N+1 redundancy in power infrastructure that are Tier III standards. Ascenty, Axtel, ODATA, Equinix, Angola Cables, CenturyLink, GTD Group, Telefonica, and KIO Networks are major Uptime Institute certified data center operators. Several data centers built in recent times are of Tier III standards due to an increased need for redundant components to at least support critical applications in data centers. Tier IV facilities are witnessed in Brazil, Chile, Colombia, Ecuador, Mexico, Uruguay, Costa Rica, Guatemala, and the Dominican Republic.
KEY QUESTIONS ANSWERED
1. What is the value of the Latin American data center market during the period 2021- 2026? 2. What key factors and market trends are anticipated to drive the Latin America data center market growth? 3. How have technological advancements such as automation and AIs enabled the data center market growth? 4. What are significant market opportunities and threats faced by vendors in the data center market? 5. Who are the key players in the Latin America data center market? 6. What is the impact of COVID-19 on the Latin America data center market share?
Key Topics Covered:
1 Research Methodology
2 Research Objectives
3 Research Process
4 Scope & Coverage 4.1 Market Definition 4.2 Base Year 4.3 Scope Of The Study 4.4 Market Segments
7 Introduction 7.1 Data Center Site Selection Criteria
8 Market Opportunities & Trends 8.1 5G To Grow Edge Data Center Investments 8.2 Automation & Artificial Intelligence In Data Centers 8.3 Implementation Of All Flash Storage Systems 8.4 Growth In Rack Power Density
9 Market Enablers 9.1 Adoption Of Cloud & Big Data Drives Data Center Market 9.2 COVID-19 Spikes Data Center Demand 9.3 Growth In Modular Data Center Deployment 9.4 Digital Economy In Latin America 9.5 Increased Deployment Of Submarine Cables 9.6 Tax Incentives Fueling Data Center Growth
10 Market Restraints 10.1 Lack Of Skilled Workforce 10.2 Security Challenges In Data Centers 10.3 Location Constraints For Data Center Construction 10.4 Increased Power & Network Outages
12 Infrastructure 12.1 Market Snapshot & Growth Engine 12.2 Market Overview 12.3 IT Infrastructure 12.4 Electrical Infrastructure 12.5 Mechanical Infrastructure 12.6 General Construction
13 IT Infrastructure 13.1 Market Snapshot & Growth Engine 13.2 Server Infrastructure 13.3 Storage Infrastructure 13.4 Network Infrastructure
14 Electrical Infrastructure 14.1 Market Snapshot & Growth Engine 14.2 UPS Systems 14.3 Generators 14.4 Transfer Switches & Switchgear 14.5 Power Distribution Units 14.6 Other Electrical Infrastructure