An organization's physical building intended to share IT operations and hardware for distributing, processing, and storing data and apps is called a data centre. This organisation also includes a network of computer programmes and storage solutions that are intended to simplify the sharing of information and data. Because of the advancement of multi-cloud computing, the shift from traditional on-premises physical servers to virtual network-based data centres is driving the global expansion of data centres. A modern enterprise data centre is capable of communicating with a wide range of cloud and on-premises sites. Modern data centres may also leverage a public or private cloud computing solution to improve operations and storage beyond physical infrastructure. Furthermore, remote servers can be employed in virtualized data centres to perform high-volume operations.
South America Data Center Market Driving Factors and Challenges
Driving Factors- The implementation of 5G networks accelerated digital transformation, IoT, smart cities, and the industrial revolution in South America. South American governments are working on digital transformation to attract foreign investment. The growth of 5G technology increases the need for high-bandwidth internet in Tier II and Tier III cities, resulting in a substantial volume of data and driving the creation of data centres to handle the information on par with big cities. The introduction of 5G services has an impact on the ICT, government, manufacturing, services, agricultural, and retail industries. 5G network services play an important role in enterprise digitalization and will accelerate the deployment of IoT applications.
Challenges- Data centres require significant initial investments due to the high capital expenditure involved with IT equipment and supporting infrastructure, an ideal location, and licencing expenses, depending on the type of data centre. A constant expense must be incurred for their optimal operation as well. Costs are incurred for numerous infrastructure components such as building construction, IT gear and software, and networking services, as well as paying experienced experts to maintain the complete setup securely. The typical annual cost of operating a major data centre is from $10 million to $25 million. Hardware, software, disaster recovery, continuous power supplies, and networking account for somewhat less than half of total spending. Another significant percentage goes for the upkeep of apps and infrastructure. The remainder is allocated to heating, air conditioning, property and sales tax, and labour.
Impact of COVID-19 on South America Data Center Market
The market's growth in 2020 has been greatly impacted by the COVID-19 outbreak. However, a major factor impeding the market's growth is the spike in demand for cloud computing network solutions. Furthermore, a number of challenges predominantly affected the data centre business, such as the scarcity of a skilled labour force as a result of a comprehensive and realistic lockdown. Furthermore, it is anticipated that the data centre business will be driven in the post-pandemic period by a boom in data centre usage in the government, healthcare, and BFSI sectors.
South America Data Center Market Key Players:
The market study provides market data by competitive landscape, revenue analysis, market segments and detailed analysis of key market players such as Ascenty (Digital Realty Trust Inc), EdgeUno Inc, Equinix Inc, GTD Grupo Teleductos SA, HostDime Global Corp, Lumen Technologies Inc, NABIAX, ODATA (Patria Investments Ltd), Quantico Data Center, Scala Data Centers, SONDA SA, Terremark (Verizon), Others.
South America Data Center Market Segmentation:
By Data Center Size: Based on the Data Center Size, South America Data Center Market is segmented as; Large, Massive, Medium, Mega, Small.
By Tier Type: Based on the Tier Type, South America Data Center Market is segmented as; Tier 1 and 2, Tier 3, Tier 4.
By Absorption: Based on the Absorption, South America Data Center Market is segmented as; Non-Utilized, Utilized.
By Region: This research also includes data for Brazil, Chile, Rest of South America.
This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.