In Latin America the Data Center Support Infrastructure Investment to Cross $1.86 Billion by 2028; Ascenty, Equinix, HostDime, ODATA, & Scala Data Centers are the Major Contributors - Arizton

CHICAGO, July 6, 2023 /PRNewswire/ -- According to Arizton's latest research report, the Latin America data center market will grow at a CAGR of 8.14% during 2022-2028.

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The rise in coverage of 5G and its deployment in the region will attract more edge data center investment across the region. The deployment of submarine cables, such as the Caribbean Express (CX cable) and Firmina cable, will help the region to establish a better connection with the rest of the world. Regional governments initiate several schemes and incentives to attract data center investments. A free trade zone (FTZ) is introduced in Columbia. Similarly, Patagonia is an emerging data center hub in Chile, as the government plans tax incentives to develop data centers.

Major contributors to green data center development include Brazil, Chile, Argentina, and Paraguay, wherein data center operators and governments work on adopting renewable energy and other measures. Ascenty, Equinix, HostDime, ODATA, Quantico, Scala Data Centers, Telmex, and Tigo Business are the colocation service providers major contributors to the Latin America data center market's growth.

Latin America Data Center Market Report Scope

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Market Opportunities & Trends

• 5G is already launched in Mexico, Brazil, and Chile, while Columbia and Argentina are running tests for 5G technology. The growth of this technology will influence the network as it will increase the amount of data processed within the servers.
• In September 2022, UOL formed Edge UOL and announced a collaboration with DigitalBridge's Scala Data Centers and AWS to explore the opportunity for edge computing.
• Latin American countries identify the benefit of using DCIM systems to monitor and automate their new data centers to overcome potential future challenges. Most vendors that provide power infrastructure invest in software systems, such as StruxureWare from Schneider Electric, Trellis from Vertiv, and the Ability Automation platform from ABB, that track power infrastructure.
• Ascenty's data centers are equipped with automation solutions, where support infrastructure is monitored continuously to reduce outages due to power and equipment failures. ODATA is also equipped with monitoring solutions: ITSM and BMS systems.

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Geographical Insights

• Brazil is the leading data center market in Latin America, with more than 45% of investments in the region due to the growth in internet penetration and adoption of cloud-based services by businesses in the country.
• Mexico has several SEZs that provide multiple benefits to investors, such as corporate tax exemption, import and export tax exemptions, and support for local labor recruitment. The country has seven existing submarine cables that connect Mexico with other Latin American countries and the US.
• The Chilean government plans to digitalize 100% of government services in the country by 2023 as a part of its digital transformation strategy. Public services under healthcare, education, and government rapidly adopt AI and IoT to transform digitally.
• Colombia is one of the emerging data center destinations in Latin America. Bogota, the capital city, is the major location for data center development and has the maximum number of data centers. Bogota is followed by Barranquilla and Cali.
• In 2019, AWS bought 140 hectares across sites near Bahia Blanca, Argentina, to develop three data centers. These three sites are code-named Tango Sur, Tango Centro, and Tango Norte. In April 2021, Millicom (Tigo) and AWS collaborated to provide cloud-based services across other Latin American countries.

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Segmentation Analysis

• A multi-cloud strategy is adopting multiple cloud services from single or multiple vendors operating in the Latin America data center market – for instance, using Amazon Web Services for application workloads and Microsoft Azure for enterprise databases.
• The higher rack power density, powerful infrastructure, and increase in high-performance computing led to innovations by vendors in new designs and types of racks.
• Vendors in the Latin America data center market continuously innovate with UPS solutions to increase efficiency and reduce costs. There is increased interest in facilities procuring more than 750 kVA UPS systems.
• The introduction of hydrogen fuel cells and natural gas-based fire suppression systems will lead to a reduction in water consumption levels. It will help operators to increase the sustainability and efficiency of data centers.

Market Segmentation

Facility Type

• Colocation & Hyperscale Self-Built Data Centers
• Enterprise Data Centers

Infrastructure

• IT Infrastructure
• Electrical Infrastructure
• Mechanical Infrastructure
• General Construction

IT Infrastructure

• Server Infrastructure
• Storage Infrastructure
• Network Infrastructure

Electrical Infrastructure

• UPS Systems
• Generators
• Transfer Switches & Switchgear
• Power Distribution Units
• Other Electrical Infrastructure

Mechanical Infrastructure

• Cooling Systems
• Racks
• Other Mechanical Infrastructure

Cooling Systems

• CRAC & CRAH Units
• Chiller Units
• Cooling Towers, Condensers, and Dry Coolers
• Economizers & Evaporative Coolers
• Other Cooling Units

Cooling Techniques

• Air-based Cooling Technique
• Liquid-based Cooling Technique

General Construction

• Core & Shell Development
• Installation & Commissioning Services
• Engineering & Building Design
• Physical Security
• Fire Detection & Suppression
• DCIM

Tier Standard

• Tier I & II
• Tier III
• Tier IV

Geography

• Latin America
• Brazil
• Mexico
• Chile
• Colombia
• Rest of Latin America

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Table of Content

ABOUT ARIZTON

ABOUT OUR DATA CENTER CAPABILITIES

WHAT'S INCLUDED

SEGMENTS INCLUDED

RESEARCH METHODOLOGY

MARKET AT GLANCE

PREMIUM INSIGHTS

INVESTMENT OPPORTUNITIES

• INVESTMENT: MARKET SIZE & FORECAST
• AREA: MARKET SIZE & FORECAST
• POWER CAPACITY: MARKET SIZE & FORECAST

MARKET DYNAMICS

• MARKET OPPORTUNITIES & TRENDS
• MARKET GROWTH ENABLERS
• MARKET RESTRAINTS
• SITE SELECTION CRITERIA

FACILITY TYPE SEGMENTATION

• COLOCATION & HYPERSCALE SELF-BUILT DATA CENTERS
• ENTERPRISE DATA CENTERS

INFRASTRUCTURE SEGMENTATION

• IT INFRASTRUCTURE
• ELECTRICAL INFRASTRUCTURE
• MECHANICAL INFRASTRUCTURE
• COOLING SYSTEMS
• COOLING TECHNIQUES
• GENERAL CONSTRUCTION

TIER STANDARDS SEGMENTATION

GEOGRAPHY SEGMENTATION

LATIN AMERICA

• MARKET SNAPSHOT & KEY HIGHLIGHTS
• DATA CENTER MARKET BY INVESTMENT
• DATA CENTER MARKET BY INFRASTRUCTURE
• DATA CENTER MARKET BY AREA
• DATA CENTER MARKET BY POWER CAPACITY
• DATA CENTER MARKET BY SUPPORT INFRASTRUCTURE
• DATA CENTER MARKET BY IT INFRASTRUCTURE

BRAZIL

• KEY INVESTORS & INVESTMENTS
• MARKET BY INVESTMENT
• KEY SEZS, DEVELOPMENTS AND LAND PRICING
• MARKET BY AREA
• POWER PRICING & RENEWABLE ENERGY ADOPTION
• MARKET BY POWER CAPACITY
• KEY SUPPORT INFRASTRUCTURE ADOPTION
• MARKET BY INFRASTRUCTURE

MEXICO

• KEY HIGHLIGHTS & INVESTMENTS
• MARKET BY INVESTMENT
• KEY DEVELOPMENT AND LAND PRICING
• MARKET BY AREA
• POWER PRICING & RENEWABLE ENERGY ADOPTION
• MARKET BY POWER CAPACITY
• KEY SUPPORT INFRASTRUCTURE ADOPTION
• MARKET BY INFRASTRUCTURE

CHILE

• KEY INVESTORS & INVESTMENTS
• MARKET BY INVESTMENT
• KEY DEVELOPMENT AND KEY SEZS
• MARKET BY AREA
• POWER PRICING & RENEWABLE ENERGY ADOPTION
• MARKET BY POWER CAPACITY
• KEY SUPPORT INFRASTRUCTURE ADOPTION
• MARKET BY INFRASTRUCTURE

COLOMBIA

• KEY INVESTORS & INVESTMENTS
• MARKET BY INVESTMENT
• KEY SEZS AND INVESTMENT COST
• MARKET BY AREA
• POWER PRICING & RENEWABLE ENERGY ADOPTION
• MARKET BY POWER CAPACITY
• KEY SUPPORT INFRASTRUCTURE ADOPTION
• MARKET BY INFRASTRUCTURE

REST OF LATIN AMERICA

• KEY INVESTORS & INVESTMENTS
• MARKET BY INVESTMENT
• KEY SEZS, LAND ACQUISITION & DEVELOPMENT
• MARKET BY AREA
• POWER CAPACITY ADDITION & RENEWABLE ENERGY ADOPTION
• MARKET BY POWER CAPACITY
• KEY SUPPORT INFRASTRUCTURE ADOPTION
• MARKET BY INFRASTRUCTURE

MARKET PARTICIPANTS

• IT INFRASTRUCTURE PROVIDERS
• SUPPORT INFRASTRUCTURE PROVIDERS
• DATA CENTER CONTRACTORS & SUBCONTRACTORS
• DATA CENTER INVESTORS
• NEW ENTRANTS

QUANTITATIVE SUMMARY

APPENDIX

• ABBREVIATIONS
• DEFINITIONS
• SEGMENTAL COVERAGE

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