Chicago, June 15, 2022 (GLOBE NEWSWIRE) -- According to Arizton latest research report, the Latin America data center colocation market is expected to grow at a CAGR of 6.15% during 2022-2027. The data centre colocation market in Latin America witnessed biggest expansion in Brazil, with operators such as Quantico, Nabiax (Telefonica), Ava Telecom, Ascenty (Digital Realty), OneX, and Scala Data Centers adding roughly 172 thousand square feet of colocation space in 2021.
Latin America Data Center Colocation Market Report Scope
REPORT ATTRIBUTES | DETAILS | |
MARKET SIZE (2027) | $1.2 Billion | |
MARKET SIZE (2021) | $852 Million | |
CAGR (2021-2027) | 6.15% | |
MARKET SIZE BY AREA (2027) | 1114 THOUSAND SQ FT | |
MARKET SIZE BY POWER CAPACITY (2027) | 220.5 MW | |
BASE YEAR | 2021 | |
FORECAST YEAR | 2022-2027 | |
MARKET SEGMENTS | Colocation Service, Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Cooling Systems, General Construction, Tier Standard, and Region |
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Important Facts to Know?
- Digitalization among Latin American countries, hyperscale cloud service providers, colocating the data centers, growth in connectivity, and others are some of the major drivers for the colocation market in Latin America.
- In 2021, Brazil is the leading location in terms of the number of colocation projects, contributing a market share of around 58%, followed by Mexico with a share of around 28%.
- In 2021, Data center operators such as Ascenty (Digital Realty), Scala Data Centers, Ava Telecom, Equinix, Nabiax (Telefonica), HostDime, ODATA and Quantico are few of the major investors in the Latin America market.
- In 2021, the retail colocation dominated the market with over 80% of the market share.
- Several governments across the region are setting up special economic zones or free trade zones that will offer tax incentives as well as exemptions on several import and export charges attracting investments into the market.
Latin America is a significantly growing market in terms of sustainable power usage by data center operators and government organizations. Governments across several countries are taking initiatives to produce electricity from renewable energy sources. Countries such as Brazil, Chile, Colombia, Argentina, Peru, and Mexico are among the major locations, adopting renewable energy sources. Equinix was the largest data center operator in terms of total power capacity expansion in 2021, with about 16 MW added in around two facilities, followed by Ascenty (Digital Realty) with around 14 MW added in around three data centers in Brazil.
The data center colocation market in Latin America is home to over 140 colocation data centers that were opened in 2021 and before 2021. Brazil is the leading location in terms of the number of colocation data centers, with around 46 facilities opened as of 2021. Brazil is followed by Chile with around 38 colocation facilities and Mexico with around 28 facilities. Colombia has around 18 operational colocation facilities, followed by Argentina with around 18 operational facilities. Peru is also an emerging location with around eleven operational colocation data center facilities.
Key Offerings:
- Market Size & Forecast by Investment | 2021−2027
- Market Size & Forecast by Area | 2021-2027
- Market Size & Forecast by Power Capacity | 2021-2027
- Market Dynamics – Leading trends, growth drivers, restraints, and investment opportunities
- Market Segmentation – A detailed analysis of Colocation Service, Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Cooling Systems, General Construction, Tier Standard, and Region
- Competitive Landscape – 12 IT infrastructure providers, 8 prominent construction contractors, 18 prominent support infrastructure providers, 15 prominent data center investors, and 3 new entrants
Competitive Landscape
The Latin America data center colocation market is growing significantly with investments from several local and global colocation operators. The Latin American region is migrating from telco-owned data center facilities to colocation facilities owned by REITs. However, investments from colocation REIT are identified to be higher among a few countries, namely Brazil, Colombia, Chile, and Mexico. ODATA has invested in the development of around four data centers in Brazil, Chile, and Mexico. Scala Data Centers is constructing around seven data centers across Brazil, Chile, and Mexico that are going to be operational in the forecast period. Other investors in the market include Claro, OneX, Embratel, and others.
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
Data Center Colocation Market in Latin America – Segmentation Analysis
Segmentation by Colocation Service
- Retail Colocation
- Wholesale Colocation
Segmentation by Infrastructure
- Electrical Infrastructure
- Mechanical Infrastructure
- General Construction
Segmentation by Electrical Infrastructure
- UPS Systems
- Generators
- Transfer Switches & Switchgear
- Power Distribution Units
- Other Electrical Infrastructure
Segmentation by Mechanical Infrastructure
- Cooling Systems
- Racks
- Other Mechanical Infrastructure
Segmentation by Cooling Systems
- CRAC & CRAH Units
- Chiller Units
- Cooling Towers, Condensers & Dry Coolers
- Economizers & Evaporative Coolers
- Other Cooling Units
Segmentation by General Construction
- Core & Shell Development
- Installation & Commissioning Services
- Engineering & Building Design
- Fire Detection & Suppression
- Physical Security
- DCIM/BMS
Segmentation by Tier Standard
- Tier II
- Tier III
- Tier IV
Segmentation by Region
- Brazil
- Mexico
- Chile
- Other Latin American Countries
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