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The Latin American Data Center Industry: Shares, Growth Drivers, Challenges and Investment Opportunities (2020-2025)DUBLIN, Feb. 14, 2020 /PRNewswire/ -- The "Data Center Market in Latin America - Industry Analysis and Forecast 2020-2025" report has been added to ResearchAndMarkets.com's offering. The data center market in Latin America is expected to grow at a CAGR of over 6% during the period 2019-2025. Key Market Insights
The digitalization of the business environment is driving the data center market in Latin America. Around one-third of the population adopted smart devices in 2019, which has led to the growth of internet-based service consumption, i.e. adoption of cloud-based services in the region. Many facilities in Colombia are equipped with a minimum cooling redundancy of N+1 configuration. The growth of rack power density will prompt providers to adopt innovative cooling solutions such as evaporative coolers to facilitate free cooling solutions. The use of water-based cooling solutions will dominate other Latin American markets, including Peru, Argentina, Uruguay, Mexico, and the Caribbean. Most data center development in Brazil during the forecast period is expected to be greenfield. The market has a strong potential for growth for modular projects. In Chile, a majority of the construction contractors are generally involved in the development of greenfield and modular facilities. With the market operating data centers of IBM and Google, the country is likely to witness the opening of a few additional Tier IV facilities with high operational sustainability. The data center construction market in Colombia involves the adoption of greenfield developments and modular facilities. Greenfield developments are carried out by colocation and telecommunication service providers. Tier I data centers exist in the North American region. According to the Uptime Institute, there are around two facilities in Latin America that are Tier II certified based on designing and construction. In these facilities, redundancy is recognized between UPS and PDU systems. Other infrastructures are identified to be working through the single delivery path with no redundancy in most cases; this includes piping of data center cooling systems. However, with the increased awareness of redundant infrastructure, the number of Tier I facilities in Latin America have decreased considerably in the last five years. Tier IV data centers facilities are in Brazil, Colombia, Chile, Mexico, Uruguay, and Ecuador in Latin America. Tier IV facilities are equipped with at least 2N+1 redundancy in every infrastructure that makes the facility fault-tolerant, with some facilities having 2N+2 redundancy in few critical infrastructures such as UPS systems and PDUs. The contribution of hyperscale developers such as Google and AWS is aimed at making a facility that is fully fault-tolerant to provide customers with satisfaction while connecting with cloud-based services in a region. Insights by Geography Brazil is the leading country with the highest number of facilities. With the increasing internet penetration, the use of cloud-based services by businesses is growing. In Brazil, there were about 13 new facilities opened or under-construction projects and are likely to be operational by 2019. Cloud service providers such as Alibaba is also planning to launch its cloud computing service in Brazil. Alibaba has identified a local partner known as UOL Diveo that will resell its cloud services in Brazil. In Brazil, Sao Paulo is the state with the majority of investment from Ascenty, Equinix, UOL DIVEO. Rio de Janeiro is also preferred by colocation service providers such as Ascenty and Centurylink. Chile has been witnessing growth in data centers development in recent years due to the demand for cloud-based services, the internet of things (IoT), and big data analytics the increasing submarine cable deployments in Chile, the data center construction market is growing rapidly. For instance, Huawei is expected to build a 2,800-kilometer subsea cable project in Chile in partnership with Communications and Rural Telephony (CTR). Colocation and telecommunication service providers are the major contributor to the Chile market. Ascenty is one of the leading operators in Latin America and is investing in its first facility in Chile. Ascenty is expected to expand its presence in the country with Google boosting the market growth through additional investments. Key Vendor Analysis The data center construction market in Latin America is continuing to grow in terms of greenfield, brownfield, and modular data center construction. The market is still witnessing increased growth in the number of facilities across all regions, with a high adoption of efficient and modular data center infrastructure solutions. The market has a strong presence of vendors across all three categories, such as electrical infrastructure, mechanical infrastructure, and general construction. 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 4.4.1 Market Segmentation by Infrastructure 4.4.2 Market Segmentation by IT Infrastructure 4.4.3 Market Segmentation by Electrical Infrastructure 4.4.4 Market Segmentation by Mechanical Infrastructure 4.4.5 Market Segmentation by Cooling Systems 4.4.6 Market Segmentation by General Construction 4.4.7 Market Segmentation by Tier Standards 4.4.8 Market Segmentation by Geography 5 Report Assumptions & Caveats 5.1 Key Caveats 5.2 Currency Conversion 5.3 Market Derivation 6 Market at a Glance 7 Introduction 7.1 Data Center Site Selection Criteria 7.1.1 Key 7.2 Internet Penetration 7.2.1 Impact of Internet Penetration in Latin America 8 Market Growth Enablers 8.1 Demand for Cloud, Colocation, & Managed Service Providers 8.2 Increased Use of Big Data & IoT Technologies 8.3 Rising Interest for Modular/Containerized/POD Data Center Deployment 8.4 Development of Green Data Centers 8.5 Growth of Network Connectivity & High-Speed Bandwidth 8.6 Increased Tax Incentives & Low Cost of Data Center Construction 8.7 Growing Rack Power Density in Data Centers 9 Market Restraints 9.1 Rising Cybersecurity Challenges 9.2 Lack of Skilled Workforce 9.3 Site Selection Contraints for Data Center Development 9.4 High Cost of Data Center Infrastructure 10 Market Opportunities & Trends 10.1 Adoption of Flash Storage Solutions 10.2 Increased Adoption of DCIM Solutions 10.3 Increasing Use of Free Cooling In Data Centers 10.4 Shift to Edge Data Center Deployments 11 Market Landscape 11.1 Market Overview 11.2 Market Size & Forecast 11.3 Five Forces Analysis 11.3.1 Threat of New Entrants 11.3.2 Bargaining Power of Suppliers 11.3.3 Bargaining Power of Buyers 11.3.4 Threat of Substitutes 11.3.5 Competitive Rivalry 12 Infrastructure Segmentation 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 13.3 Servers 13.4 Storage 13.5 Network 14 Electrical Infrastructure 14.1 Market Snapshot & Growth Engine 14.2 UPS Systems 14.3 Generators 14.4 Transfer Switches & Switchgears 14.5 Power Distribution Units (PDU's) 14.6 Other Electrical Infrastructure 15 Mechanical Infrastructure 15.1 Market Snapshot & Growth Engine 15.2 Cooling Systems 15.3 Racks 15.4 Other Mechanical Infrastructure 16 Cooling Systems 16.1 Market Snapshot & Growth Engine 16.2 CRAC & CRAH Units 16.3 Chiller Units 16.4 Economizers & Evaporative Coolers 16.5 Cooling Towers, Dry Coolers & Condensers 16.6 Other Cooling Units 17 Cooling Technique 17.1 Market Snapshot & Growth Engine 17.2 Air-Based Cooling Technique 17.3 Liquid-Based Cooling Technique 18 General Construction 18.1 Market Snapshot & Growth Engine 18.2 Building Development 18.3 Installation & Commissioning Services 18.4 Building Design 18.5 Physical Security 18.6 DCIM 19 Tier Standards 19.1 Market Snapshot & Growth Engine 19.2 Overview of Tier Standards 19.3 TIER I & TIER II 19.4 TIER III 19.5 TIER IV 20 Geography 20.1 Investment: Geography Snapshot & Growth Engine 20.2 Power Capacity: Geography Snapshot & Growth Engine 20.3 Area: Geography Snapshot & Growth Engine 21 Brazil 22 Chile 23 Colombia 24 Rest of Latin America 25 Competitive Landscape 25.1 Competitive Scenario 25.2 Infrastructure Providers 25.3 Construction Contractors 25.4 Data Center Investors 26 Prominent IT Infrastructure Providers 26.1 Hewlett Packard Enterprise (HPE) 26.1.1 Business Overview 26.1.2 Product Offerings 26.1.3 Key News 26.2 Cisco 26.3 Dell Technologies 26.4 Huawei 26.5 IBM 27 Prominent Construction Contractors 27.1 Aecom 27.1.1 Overview 27.1.2 Service Offerings 27.2 Constructora Sudamericana S.A. 27.3 Flexenclosure 27.4 Aceco TI 27.5 ZFB Group 28 Prominent support Infrastructure Providers 28.1 ABB 28.1.1 Overview 28.1.2 Product Offerings 28.1.3 Key News 28.2 Eaton 28.3 Rittal 28.4 Kinolt (Euro-Diesel) 28.5 Schneider Electric 28.6 Stulz 28.7 Vertiv 29 Prominent Data Center Investors 29.1 Ascenty 29.1.1 Overview 29.1.2 Service Offerings 29.1.3 Key News 29.2 Equinix 29.3 Google 29.4 OData 29.5 Tigo (Millicom) 30 Other Prominent IT Infrastructure Providers 30.1 Arista 30.1.1 Business Overview 30.1.2 Product Offerings 30.2 Broadcom 30.3 Juniper 30.4 Lenovo 30.5 Netapp 30.6 Oracle 30.7 Pure Storage 31 Other Prominent Construction Contractors 31.1 Fluor Corporation 31.1.1 Overview 31.1.2 Service Offerings 31.2 Holder Construction 31.3 Jacobs Engineering Group 31.4 Mortenson Construction 32 Other Prominent Infrastructure Providers 32.1 Active Power (Piller Power Systems) 32.1.1 Overview 32.1.2 Product Offerings 32.2 ALFA LAVAL 32.3 Assa Abloy 32.4 Axis Communications 32.5 Bosch Security Systems (Robert Bosch) 32.6 Caterpillar 32.7 Cisco 32.8 Cummins 32.9 Daikin Applied (Daikin Industries) 32.10 Delta Group 32.11 Generac Power Systems 32.12 Honeywell International 32.13 Legrand 32.14 Mitsubishi 32.15 Munters 32.16 Panduit 32.17 Siemens 33 Other Prominent Data Center Investors 33.1 Edgeconnex 33.1.1 Overview 33.1.2 Service Offerings 33.1.3 Key News 33.2 GTD Group 33.3 Telefonica For more information about this report visit https://www.researchandmarkets.com/r/16dgpw Research and Markets also offers Custom Research services providing focused, comprehensive and tailored research. Media Contact: Research and Markets View original content:http://www.prnewswire.com/news-releases/the-latin-american-data-center-industry-shares-growth-drivers-challenges-and-investment-opportunities-2020-2025-301005267.html SOURCE Research and Markets |