DUBLIN--(BUSINESS WIRE)--The "Latin America Data Center Colocation Market - Industry Outlook and Forecast 2022-2027" report has been added to ResearchAndMarkets.com's offering.
The Latin America data center colocation market is witnessing significant growth in the procurement of lithium-ion UPS systems. Most edge facility deployment will include single-phase lithium-ion UPS and monitored and switched PDUs. Therefore, the emergence of edge facilities will be a significant boost to the market growth.
Data centers invest more in power infrastructure with a minimum of N+1 redundancy. Most facilities are installed with N+N or 2N redundancy for power infrastructure with more redundancy for UPS and generator systems. AECOM, Aceco TI, Constructora Sudamericana, Fluor Corporation, Holder Construction, Jacobs Engineering Group, Quark, and ZFB Group are some construction contractors building data centers in Latin America
In 2021, local and global operators dominated the market through retail colocation and construction activities. However, the presence of cloud service providers is gaining traction and is expected to boost the wholesale colocation in the region. Brazil, Chile, and Mexico are witnessing growth in demand from cloud service providers; hence the wholesale colocation market is flourishing in these countries.
KEY HIGHLIGHTS OF THE LATIN AMERICA DATA CENTER COLOCATION MARKET
- Some of the primary drivers of the Latin America data center colocation market growth include increased digitalization across several countries, hyperscale cloud service providers' colocation data centers, and growth in connectivity.
- Some colocation data centers are developing wholesale colocation space in their facilities across several countries to support growing colocation demand from cloud service providers such as Microsoft, Oracle, IBM, Google, Huawei, AWS, and government entities.
- The computing power in data centers has grown significantly due to an increase in the demand for cloud services, big data, and IoT, which has led to an increase in rack power density. The increase in data bandwidth and high-performance computing will drive the data center operators to procure efficient infrastructure to manage any downtime.
- COVID-19 has been a boon across the industry, accelerating digital transformation initiatives across Latin America, increasing data center service demand, and driving the utilization of capacity among colocation facilities
- The market attracts investments from cloud service providers such as Google, Amazon Web Services, Microsoft, Oracle, IBM, and Tencent. These providers will continue to fuel the colocation demand across the region in the forecast period.
- Governments across the region are aiding the growth in the data center construction by offering several kinds of tax benefits.
- The region is witnessing significant initiatives for connectivity with growth in submarine cable deployments. In Latin America, Brazil, Chile, Colombia, Argentina, Peru, Uruguay, Venezuela, Mexico, Ecuador, and other Latin American countries have submarine cable connectivity, connecting Europe, Africa, and the US.
KEY TRENDS IN THE INDUSTRY
Focus on Automation, and AI in Data Centers is Gaining Traction
- In Latin America, almost 80% of large businesses use AI technology. It is expected that by 2022, AI will be implemented across 21%-40% of businesses. Many countries in Latin America developed or are developing national AI plans, but political volatility is interrupting the strategy
- The adoption of AI technology is significant in various industries, including data centers. The infrastructure maintenance demands preventing operational failure by automating data center facilities. UPS systems waste power for energy storage by converting AC to DC and vice versa
GEOGRAPHICAL ANALYSIS
- Latin America data center colocation market has been attracting significant investments in recent years, led by countries such as Brazil, Chile, Colombia, and Mexico, with emerging locations such as Uruguay, Bolivia, Argentina, and Peru.
- In 2021, Brazil was the major shareholder in terms of market share as per investments with around 58%, followed by Mexico with a share of about 28% 2021.
- Mexico data center colocation market will witness area addition with an absolute growth rate of 41% between 2022 and 2027. In 2021, Mexico had an industry share of around 27% in terms of power capacity addition.
- In terms of revenue, the primary revenue generation was witnessed in Brazil due to several local and global data center operators such as Equinix, Ascenty, ODATA, and Scala Data Centers.
- The significant demand came from sectors such as telecommunication and internet service providers for the region's colocation of data center facilities.
- Global colocation providers are entering the competition through strategic partnerships with local enterprises, government, and telecom service providers. For instance, global colocation data center operator Equinix entered the Mexico market after acquiring Axtel's business.
VENDOR ANALYSIS
- Some major colocation operators in the Latin American colocation market include Ascenty, Claro, Equinix, HostDime, ODATA, Scala Data Centers, Millicom (Tigo), and others.
- Vendors are increasing their presence in Latin American countries, which is likely to boost revenue growth, mainly due to the increased construction of large data centers in Brazil, Chile, Colombia, and Mexico.
- The market is expected to witness more mega data center constructions to cope with the demand for wholesale colocation by cloud service providers, which is likely to add revenue opportunities for infrastructure providers under their respective operating segments.
- Many operators are also adopting units from different vendors to provide efficient cooling solutions for the facility.
- Several data center operators depend on local resellers and skilled local expertise for installation, commissioning, and maintenance services. Several infrastructure providers in the market offer specific products or a complete range of infrastructure solutions suitable for Latin American data centers.
- The construction of data centers is increasing significantly, and greenfield data center development is growing YOY and witnessing a strong contribution from the Latin America modular data center market.
- The region has the presence of both global and local construction contractors, engineering, and architectural firms. The growth in the data center market will provide opportunities for local sub-contracts in construction, engineering, and architectural verticals.
Prominent Support Infrastructure Vendors
- ABB
- Alfa Laval
- Assa Abloy
- Axis Communication
- Bosch Security Systems( Robert Bosch)
- Caterpillar
- Cummins
- Delta Electronics
- Daikin Applied ( Daikin Industries)
- Eaton
- Generac Power Systems
- Honeywell International
- Johnson Controls
- Legrand
- Mitsubishi Electric
- Munters
- Piller Power Systems
- Panduit
- Rittal
- Rolls-Royce
- Schneider Electric
- Stulz
- Siemens
- Vertiv
Prominent Construction Contractors
- Aecom
- Aceco TI
- Constructora Sudamericana
- Fluor Corporation
- Gensler
- HDOS
- Holder Construction
- Jacobs Engineering Group
- PQC
- QUARK
- ZFB Group
- Zeittec
Prominent Data Center Investors
- Ascenty
- AVA Telecom
- CLARO
- Edgeconnex
- Hostdime
- Globenet
- GTD Peru
- Internexa
- IPXON Networks
- Lumen Technologies
- NABIAX
- ODATA
- Onex
- Scala Data Centers
- Telmex
- Millicom(TIGO)
- Quantico
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
5 Report Assumptions & Caveats
5.1 Key Caveats
5.2 Currency Conversion
5.3 Market Derivation
6 Market at a Glance
7 Premium Insights
7.1 Key Highlights
7.2 Segmentation Analysis
7.3 Key Trends in the Market
7.4 Geographical Analysis
7.5 Market Vendor Analysis
8 Introduction
8.1 Data Center Site Selection Criteria
9 Market Opportunities & Trends
9.1 5G Deployments Fueling Edge Data Center Deployments
9.2 Growing Rack Power Density
9.3 Implementation of Automation & Ai in Data Centers
10 Market Growth Enablers
10.1 Increased Deployment of Submarine Cables
10.2 Thriving Digital Economy in Latin America
10.3 Tax Incentives Enhancing Data Center Investments
10.4 Covid-19 Driving Data Center Demand
11 Market Restraints
11.1 Security Challenges in Data Centers
11.2 Location Constraints on Data Center Construction
11.3 Lack of a Skilled Workforce
11.4 Power & Network Outages
12 Market Landscape
12.1 Market Overview
12.2 Investment: Market Size & Forecast
12.3 Area: Market Size & Forecast
12.4 Power Capacity: Market Size & Forecast
12.5 Colocation Revenue: Market Size & Forecast
12.6 Five Forces Analysis
13 Colocation Service Type
13.1 Market Snapshot & Growth Engine
13.2 Market Overview
13.3 Retail Colocation
13.4 Wholesale Colocation
14 Infrastructure
14.1 Market Snapshot & Growth Engine
14.2 Electrical Infrastructure
14.3 Mechanical Infrastructure
14.4 General Construction
15 Electrical Infrastructure
15.1 Market Snapshot & Growth Engine
15.2 Ups Systems
15.3 Generators
15.4 Transfer Switches & Switchgear
15.5 Power Distribution Units
15.6 Other Electrical Infrastructure
16 Mechanical Infrastructure
16.1 Market Snapshot & Growth Engine
16.2 Cooling Systems
16.3 Racks
16.4 Other Mechanical Infrastructure
17 Cooling Systems
17.1 Market Snapshot & Growth Engine
17.2 Crac & Crah Units
17.3 Chiller Units
17.4 Cooling Towers, Condensers & Dry Coolers
17.5 Economizers & Evaporative Coolers
17.6 Other Cooling Units
18 Cooling Technique
18.1 Market Snapshot & Growth Engine
18.2 Air-Based Cooling
18.3 Liquid-Based Cooling Technique
19 General Construction
19.1 Market Snapshot & Growth Engine
19.2 Core & Shell Development
19.3 Installation & Commissioning Services
19.4 Engineering & Building Design
19.5 Fire Detection & Suppression
19.6 Physical Security
19.7 Dcim/Bms Solutions
20. Tier Standards
20.1 Market Snapshot & Growth Engine
20.2 Overview of Tier Standards
20.3 Tier I & II
20.4 Tier III
20.5 Tier IV
21. Geography
21.1 Investment: Market Snapshot & Growth Engine
21.2 Area: Market Snapshot & Growth Engine
21.3 Power Capacity: Market Snapshot & Growth Engine
21.4 Colocation Revenue: Market Snapshot & Growth Engine
22. Brazil
23. Mexico
24. Chile
25. Other Latin American Countries
25.1 Market Snapshot & Growth Engine
25.2 Market Overview
25.3 Investment: Market Size & Forecast
25.4 Area: Market Size & Forecast
25.5 Power Capacity: Market Size & Forecast
25.6 Colocation Revenue: Market Size & Forecast
25.7 Support Infrastructure: Market Size & Forecast
For more information about this report visit https://www.researchandmarkets.com/r/zfs1yz
