The "Latin America Data Center Market Landscape 2024-2029" report has been added to ResearchAndMarkets.com's offering. The Latin American data center market is projected to reach a value of $10.07 bil...
Autore: Business Wire
DUBLIN: The "Latin America Data Center Market Landscape 2024-2029" report has been added to ResearchAndMarkets.com's offering.
The Latin American data center market is projected to reach a value of $10.07 billion by 2029 from $6.36 billion in 2023, growing at a CAGR of 7.95% from 2023-2029.
The market has several participants/vendors active in the Latin America data center market, leading to market growth. The vendors offering innovative and advanced technologies will likely gain a higher market share during the forecast period. Some top IT infrastructure providers active in the Latin America data center market include Arista Networks, Broadcom, Cisco Systems, Hewlett Packard Enterprise, Huawei Technologies, Dell Technologies, IBM, NetApp, and others.
Support infrastructure vendors, including ABB, Vertiv, Schneider Electric, Caterpillar, Johnson Controls, Eaton, Cummins, Rittal, and Delta Electronics, have a huge worldwide presence, including operations in the Latin American region. Most vendors operate through subsidiaries, distributors, and local regional partners.
Brazil led the Latin America data center market in 2023, accounting for over 40% of the market share in investments. Mexico, Chile, Colombia, and Argentina followed this country. In the Latin America data center market, several countries are actively establishing Special Economic Zones (SEZs), Free Trade Zones (FTZs), Export Processing Zones (EPZs), business parks, and industrial zones, which provide attractive benefits such as tax incentives for international businesses.
In 2023, Google started the construction of the Teros data center facility in Uruguay. The company acquired a property of around 30 hectares within the Parque de las Ciencias Free Trade Zone (FTZ) in the Canelones department of Uruguay. Other Latin American data center market countries include Peru, Ecuador, Venezuela, Uruguay, Nicaragua, Paraguay, Bolivia, Honduras, and the Caribbean.
Adoption of Renewable Energy
Latin American governments, such as Brazil, Chile, Mexico, and Colombia, have set sustainability targets. They are working together to diversify their electrical networks to support policy and regulatory changes that encourage the use of renewable energy sources. Brazil, Chile, and Mexico have tremendous influence among neighboring countries, allowing them to present their renewable energy policies as viable models for the other countries in the region.
According to the 2023 bp Energy Outlook, renewables, including biofuels, will be Brazil's dominant energy source in 2050. Wind energy is expected to provide around 30% of renewable energy share and to increase by 40% for net zero scenarios.
According to the National Renewable Energy Laboratory (NREL), Mexico aims to generate at least 35% of its electricity from clean energy sources by 2024. In September 2023, Microsoft Brazil signed a 15-year Power Purchase Agreement (PPA) with AES Brasil, a renewable energy company, to procure 150 MW of wind energy.
Deployment of Artificial Intelligence (AI) workloads in Data Centers
In Latin America, Brazil, Chile, Colombia, and Mexico are the countries with the highest AI adoption rates and most significant technology investments.
Microsoft is developing a new data center/cloud region in Chile. The company agreed with the European Southern Observatory (ESO) to use AI and is already exploring AI technology in its operations in other countries. The company is estimated to use AI in its data center/cloud regions in Chile in the future.
Edge Data Center Deployment Fueled by 5G Launch
In Latin America, 5G will account for nearly 60% of the total mobile connections by 2030. The deployment of 5G networks is fueling modern edge devices, remote working, and the application of advanced technologies. Brazil is leading the way in 5G technology deployments. Other countries, including Mexico, Argentina, Colombia, and Peru, are in the trial stage.
According to Nokia, Brazil's 5G deployment will drive economic growth of over USD 1 trillion by 2035. 5G implementation will also drive the deployment of more edge data centers across the country, especially in Tier II and Tier III states.
SEGMENTATION INSIGHTS
The Latin America data center market is increasingly adopting advanced air - and liquid-based cooling techniques. This includes innovations such as liquid-based immersion cooling and Google's incorporation of inventive air conditioning technology in its latest data center in Uruguay.
Eaton, Caterpillar, Cummins, Legrand, ABB, Rolls Royce, and Schneider Electric are some of the major electrical infrastructure providers in Latin America that are collaborating with data center operators for installing electrical infrastructure, such as UPS systems and generators, with a minimum of N+1 redundancy. For instance, the KIO Networks BOG 1 data center facility is installed with Cummins diesel generators.
Data centers are investing in cooling infrastructure due to the high-temperature climate in some Latin American countries. In 2023, cooling systems will account for a market share of more than 65% of the total mechanical infrastructure in data centers.
There has been significant growth in establishing data centers in the Latin American data center market, specifically in the Tier III and IV certification categories. Many private and public entities, such as BFSI, education, and the government sector, are obtaining the Uptime Institute certifications for their data centers, either in the design phase or completely developed. This demonstrates a strong commitment to high reliability and operational excellence in data center infrastructure.
KEY QUESTIONS ANSWERED
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 101 |
| Forecast Period | 2023 - 2029 |
| Estimated Market Value (USD) in 2023 | $6.36 Billion |
| Forecasted Market Value (USD) by 2029 | $10.07 Billion |
| Compound Annual Growth Rate | 7.9% |
| Regions Covered | Latin America |
VENDOR LANDSCAPE
Prominent IT Infrastructure
Key Data Center Support Infrastructure Providers
Prominent Construction Contractors
Prominent Data Center Investors
New Entrants
SEGMENTATION
Segmentation by Facility Type
Segmentation by Infrastructure
Segmentation by IT Infrastructure
Segmentation by Electrical Infrastructure
Segmentation by Mechanical Infrastructure
Segmentation by Cooling Systems
Segmentation by Cooling Techniques
Segmentation by General Construction
Segmentation by Tier Standard
Segmentation by Geography
For more information about this report visit https://www.researchandmarkets.com/r/uuoco3
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Fonte: Business Wire