Data Center Power Market in Latin America - Industry Outlook and Forecast 2018-2023
This market research report on data center power market in Latin America offers analysis on market size & forecast, market share, industry trends, growth drivers, and vendor analysis. The market study also includes insights on segmentation by type (UPS systems, generators, transfer switches & switchgear, rack PDU, and other electrical infrastructure) and by geography (Brazil, Colombia, Chile, and rest of Latin America).
Data Center Power Market in Latin America - Overview
The growing number of greenfield and modular data center development projects is fueling the growth of the data center power market in Latin America. The growing investment is strengthening fiber connectivity, and reliability in power supply along with the growing demand from data center services across various industries such as BFSI, IT, and healthcare are the factors augmenting the development of data center facilities in the Latin American market. The growing adoption of power infrastructures such as UPS, generators, PDUs, and switchgear of N+N redundancy among facilities will fuel the demand for power infrastructure in Latin American market. The major investments for new facilities across Latin America are primarily by telecommunication giants such as Entel, Telefonica (Vivo), Americatel, Telecarrier, and América Móvil. The government agencies are investing million dollars to improve the network connectivity through submarine cables connecting Latin America with the US, Europe, and APAC markets. Leading colocation providers such as Ascenty, Entel, Equinix, ODATA, Angola Cable, TigoUne, and Axtel are the major investors in the Latin American data center market.
Brazil, Chile, Colombia, Mexico, Argentina, and Peru are the major contributors in the Latin American market. The exponential growth of cloud computing and increase in demand for cloud connectivity services for cloud platforms such as AWS, Microsoft, Google, Oracle, and IBM will transform the data center market in Latin America. The data center power market in Latin America is projected to generate revenues of around $490 million by 2023 and is anticipated to grow at a CAGR of close to 12% during the forecast period.
Data Center Power Market in Latin America - Dynamics
The data center power market in Latin America is growing due to continued investments from local and global service providers. However, several data centers are facing issues with power reliability. This issue of redundancy has led many operators to focus on improving redundancies across all power infrastructure in data centers facilities in Latin America. The rapid deployment of modular data centers will also boost the market for modular infrastructure solutions in the data center market in Latin America. Growing tax incentives offering from local government will aid in reducing the cost of procurement of power infrastructure solutions across Latin America. The use of lithium-ion battery and fuel cells to power data centers in Latin America is expected to emerge as a trend during the forecast period. Fuel cells will help operators to overcome power reliability and reduce dependence on local utility in the Latin American market.
Data Center Power Market in Latin America - Segmentation
This market research report includes a detailed segmentation of the market by type and by geography.
Data Center Power Market in Latin America – By Type
Adoption of N+N or 2N redundant infrastructure will continue to grow in the data center market in Latin America
The data center power market in Latin America by type is segmented into UPS systems, generators, transfer switches & switchgear, rack PDU, and other electrical infrastructure. Generators dominated the data center power market size in Latin America in 2017 and are projected to grow at a CAGR of more than 12% during the forecast period. The different types of generators available in the Latin American market are diesel generators, natural gas or liquid propane generators, and bi-fuel generators. The increasing adoption of N+N generators and the introduction of generators with 2N redundancy specifically for Tier 3 and Tier 4 data centers in Latin America will boost the demand for these power systems in the region. These innovative power infrastructures offer interrupted power supply during power outages and areas that are highly susceptible to natural disasters. The emergence of diesel rotary uninterruptible power supply (DRUPS) systems that combines both battery and flywheel UPS topology and a diesel generator will revolutionize the data center power market in Latin America.
Data Center Power Market in Latin America – By Geography
Million-dollar investments by colocation, telecommunication, and cloud services providers to boost revenues in Brazil, Mexico, Chile, and Colombia data center market
The geographical segmentation of the data center power market in Latin America is classified as Brazil, Colombia, Chile, and rest of Latin America. Brazil dominated the data center power market size in Latin America in 2017 and is estimated to grow at a CAGR of approximately 10% during the forecast period. The increasing investments by colocation service providers are propelling the growth of the Brazilian market in Latin America. Equinix and Ascenty contribute around 90% of the revenues in the data center market in Brazil. The development of modern data center built on tier 3 standards with a minimum of N+1 redundancy in the power infrastructure will create new opportunities leading vendors in the Latin American data center market. The prominent operators are deploying 2N redundant power infrastructure that in turn, will revolutionize the data center market in Latin America. Moreover, the increased investment in strengthening grid supply of Latin American countries is expected to revolutionize the market in the region.
Key Vendor Analysis
The data center power market in Latin America is a growing market for vendors involved in offering innovative products that help increase operational efficiency in the facilities across the region. The presence of various international and regional players is intensifying the level of competition in the Latin American market. The emergence of lithium-ion batteries, fuel cells, and DRUPS will enable companies to gain a larger market share and attract more consumers in the Latin American market. The key vendors are also focusing on integrating DCIM solutions with the existing and new facilities to reduce OPEX charges and lower power consumption levels. The demand for modular data centers with high rack density will increase partnerships among data center operators, local resellers and skilled local technicians in the Latin American market.
The major vendors in the market are:
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