Latin America Data Center Colocation Industry Outlook Report 2023-2028: Procurement of Renewable Energy Gaining Traction & 5G Deployments Fuelling EDGE Data Center Deployments
DUBLIN, Oct. 17, 2023 /PRNewswire/ -- The "Latin America Data Center Colocation Market - Industry Outlook & Forecast 2023-2028" report has been added to ResearchAndMarkets.com's offering.
The Latin America data center colocation market is expected to reach a value of $1.51 billion by 2028 from $950 million in 2022, growing at a CAGR of 8.10% from 2022 to 2028
The Latin America (LATAM) data center colocation market is experiencing a surge in growth, driven by the increasing adoption of 5G technology and significant investments in submarine cables. The deployment of vital cables like the Caribbean Express (CX cable) and Firmina cable, set to go live in the next two to three years, promises to enhance connectivity between the region and the rest of the world.
Governments across the LATAM region are actively promoting data center investments through various incentives and schemes. For instance, Colombia has established a free trade zone to attract data center investments. Furthermore, Patagonia is emerging as a data center hub in Chile, thanks to government-backed tax incentives aimed at bolstering the Latin America data center colocation market.
In Latin America, countries like Brazil, Chile, Argentina, and Paraguay are taking significant strides towards green data center development. Data center operators and governments in these nations are focusing on the adoption of renewable energy sources and other sustainability measures.
Industry leaders including HostDime, KIO Networks, and Scala Data Centers are leading the charge in constructing data centers in the Latin America data center colocation market with a Power Usage Effectiveness (PUE) of less than 1.5. Their efforts include harnessing renewable energy, implementing free cooling techniques, and optimizing IT infrastructure for efficiency.
Brazil, with colocation providers like Ascenty, Scala Data Centers, and ODATA, is a hotspot for data center investments. Leading telecom providers such as GlobeNet Telecom, Ava Telecom, and Embratel are also expanding their presence in the country, further boosting the growth of the Latin America data center colocation market.
Submarine cable projects are another significant area of investment in the Latin America data center colocation market, facilitating enhanced connectivity with other regions and countries. Mexico City has emerged as a prominent data center location within the country, boasting eight third-party data centers. Additionally, Cancun has become a key location with around six submarine cable landing stations.
Colombia is currently in the trial phase of deploying 5G network connectivity, with investments from operators like Nokia and AngloGold Ashanti Colombia.
Santiago, a major Chilean city, is experiencing robust data center development due to its strategic location and status as the economic and social capital. Leading operators in Chile, including ODATA, Ascenty, and EdgeConneX, are operating state-of-the-art facilities in Santiago.
Key vendors in the Latin America data center colocation mrket include Ascenty (Digital Realty), ODATA, Equinix, HostDime, CloudHQ, and Scala Data Centers. The market also witnesses frequent mergers and acquisitions among colocation vendors, such as Equinix's acquisition of Mexico-based data center operator Axtel and CyrusOne's purchase of stakes in ODATA.
Competitiveness among vendors is expected to intensify due to the high costs associated with acquiring modern security systems. Furthermore, Data Center Infrastructure Management (DCIM) and Building Management System (BMS) solutions will continue to play a competitive role by reducing operational expenses for data center facilities.
MARKET TRENDS & OPPORTUNITIES
Procurement of Renewable Energy in Latin America
The rise in average industrial electricity pricing, in combination with the push toward sustainability across the region, has prompted operators to focus on renewable energy procurement via Power Purchase Agreements (PPAs). Over the last two years, several operators in Latin America have either procured or signed power purchase agreements to power their facilities in the region.
These factors have accelerated data center development to process the information on par with major cities and simultaneously support the growth of Latin America data center colocation. The deployment of 5G services has impacted ICT, government, manufacturing, services, agriculture, and retail industries. 5G network services play a key role in supporting enterprise digitalization and will drive the adoption of IoT applications.
KEY QUESTIONS ANSWERED:
Market Opportunities & Trends
Market Growth Enablers
Prominent Data Center Investors
Segmentation by Colocation Service
Segmentation by Infrastructure
Segmentation by Electrical Infrastructure
Segmentation by Mechanical Infrastructure
Segmentation by Cooling Systems
Segmentation by General Construction
Segmentation by Tier Standard
For more information about this report visit https://www.researchandmarkets.com/r/nqml61
Research and Markets
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SOURCE Research and Markets