South America Data Center Market Introduction and Overview
According to SPER Market Research, the South America Data Center Market is estimated to reach USD 11 billion by 2033 with a CAGR of 8.94%.
The report includes an in-depth analysis of the South America Data Center Market, including market size and trends, product mix, applications, and supplier analysis. A data centre is a physical structure within an organisation built to share information technology operations and equipment for storing, processing, and disseminating data and applications. 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.
- In November 2022: Ascenty will invest R$1.5 billion (US$290 million) in the development of five additional data centres in South America. The data centres will be in Brazil, Chile, and Colombia.
- October 2022: Equinix inaugurated a brand-new hyperscale data centre in São Paulo, Brazil. Located near the organization's SP3 IBX data centre in Santana de Parnaba, the new SP5x facility has an initial phase capacity of around 5MW. The data centre should have a 14.4MW overall capacity after all phases are completed. The company states that it intends to invest $116.4 million in the facility overall.
- August 2022: Scala Data Centres has opened a new data centre in São Paulo, Brazil. SP4 is currently in use in the company's Tamboré campus in the Barueri neighbourhood of São Paulo. The site is operational in its first phase, with 6MW of IT power capacity in use. With the addition of 6MW of IT capacity, the second stage of SP4 is expected to start operations in September.
Market Opportunities and Challenges
Opportunities-
Adoption of Cloud
South America is one of the countries with the most rapid technical progress and innovation. Adoption of the cloud drives data generation and the expansion of the technology market. The government has launched many efforts to promote the growth and development of the cloud. Microsoft, Oracle, IBM, and Huawei Innovation have announced new cloud regions and availability zones in Latin America. Some of these cloud areas are already active, while others will be launched within the next one to two years.
Implementation of Automation and AI in Data Centres
The proliferation of smart devices, as well as the growing demand for AI and machine learning, has resulted in major investment in the Latin American data centre business. Furthermore, AI technology is important in many industries, including data centres. By automating data centre facilities, infrastructure maintenance prevents operational failure. UPS systems store energy by converting between alternating current (AC) and direct current (DC).
Challenges- Data centres require considerable initial investments due to the high capital expenditure associated with IT equipment and accompanying infrastructure, as well as an optimal site and licencing costs, depending on the type of data centre. They must also suffer a constant expense in order to operate optimally. Costs are incurred for a variety of infrastructure components, including building construction, IT equipment and software, and networking services, as well as paying trained professionals to keep the entire setup secure. Furthermore, the cost of operating the centre is increased by electricity usage. All of its parts also require routine inspection, testing, reporting, and maintenance, as well as repairs or replacements. This could somewhat impede market expansion, particularly for businesses with inadequate funding.
Market Competitive Landscape
The South American data centre market is fragmented, with the top five businesses accounting for 30.95%. The market's key participants include Ascenty (Digital Realty Trust Inc.), Lumen Technologies Inc., Scala Data Centres, SONDA SA, and Terremark (Verizon) (ordered alphabetically).
Scope of the Report:
| Report Metric | Details |
| Market size available for years | 2020-2033 |
| Base year considered | 2023 |
| Forecast period | 2024-2033 |
| Segments covered | By Data Center Size, By Tier Type, By Absorption
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| Regions covered | Brazil, Chile, Rest of South America
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| Companies Covered | 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).
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COVID-19 Impact on South America Data Center Market
Global internet traffic has increased during the outbreak since fewer individuals have been seen in public. Reducing the number of staff members on site and promoting remote work are two strategies that many companies have adopted. Thus, data centres are necessary to maintain the seamless operation of businesses. In 2021, the trend of remote work and rising internet consumption led to a 30–35% rise in data centre capacity. Following the pandemic, the industry is growing due to the increasing demand for data centre capacity.
Key Target Audience:
- Large Enterprises and Corporations
- Small and Medium-sized Enterprises (SMEs)
- Cloud Service Providers
- Telecommunications Companies
- Government and Public Sector Organizations
- Financial Services and Banking Institutions
- Healthcare Sector
- E-commerce and Retail Businesses
- Educational Institutions
- IT and Technology Companies
Our in-depth analysis of the South America Data Center Market includes the following segments:
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By Data Center Size:
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Large
Massive
Medium
Mega
Small
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By Tier Type:
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Tier 1 and 2
Tier 3
Tier 4
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By Absorption
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Non-Utilized
Utilized
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Key Topics Covered in the Report:
- South America Data Center Market Size (FY’2024-FY’2033)
- Overview of South America Data Center Market
- Segmentation of South America Data Center Market by Data Center Size (Large, Massive, Medium, Mega, Small)
- Segmentation of South America Data Center Market by Tier Type (Tier 1 and 2, Tier 3, Tier 4)
- Segmentation of South America Data Center Market by Absorption (Non-Utilized, Utilized)
- Statistical Snap of South America Data Center Market
- Expansion Analysis of South America Data Center Market
- Problems and Obstacles in South America Data Center Market
- Competitive Landscape in the South America Data Center Market
- Impact of COVID-19 and Demonetization on South America Data Center Market
- Details on Current Investment in South America Data Center Market
- Competitive Analysis of South America Data Center Market
- Prominent Players in the South America Data Center Market
- SWOT Analysis of South America Data Center Market
- South America Data Center Market Future Outlook and Projections (FY’2024-FY’2033)
- Recommendations from Analyst
1. Introduction
1.1. Scope of the report
1.2. Market segment analysis
2. Research Methodology
2.1. Research data source
2.1.1. Secondary Data
2.1.2. Primary Data
2.1.3. SPER’s internal database
2.1.4. Premium insight from KOL’s
2.2. Market size estimation
2.2.1. Top-down and Bottom-up approach
2.3. Data triangulation
3. Executive Summary
4. Market Dynamics
4.1. Driver, Restraint, Opportunity and Challenges analysis
4.1.1. Drivers
4.1.2. Restraints
4.1.3. Opportunities
4.1.4. Challenges
4.2. COVID-19 Impacts of the South America Data Center Market.
5. Market variable and outlook
5.1. SWOT Analysis
5.1.1. Strengths
5.1.2. Weaknesses
5.1.3. Opportunities
5.1.4. Threats
5.2. PESTEL Analysis
5.2.1. Political Landscape
5.2.2. Economic Landscape
5.2.3. Social Landscape
5.2.4. Technological Landscape
5.2.5. Environmental Landscape
5.2.6. Legal Landscape
5.3. PORTER’s Five Forces
5.3.1. Bargaining power of suppliers
5.3.2. Bargaining power of buyers
5.3.3. Threat of Substitute
5.3.4. Threat of new entrant
5.3.5. Competitive rivalry
5.4. Heat Map Analysis
6. Competitive Landscape
6.1. South America Data Center Market Manufacturing Base Distribution, Sales Area, Product Type
6.2. Mergers & Acquisitions, Partnerships, Product Launch, and Collaboration in South America Data Center Market
7. South America Data Center Market, By Data Center Size (USD Million) 2020-2033
7.1. South America Data Center Market Size, Share and Forecast, By Data Center Size, 2020-2026
7.2. South America Data Center Market Size, Share and Forecast, By Data Center Size, 2027-2033
7.3. Large
7.4. Massive
7.5. Medium
7.6. Mega
7.7. Small
8. South America Data Center Market, By Tier Type (USD Million) 2020-2033
8.1. South America Data Center Market Size, Share and Forecast, By Tier Type, 2020-2026
8.2. South America Data Center Market Size, Share and Forecast, By Tier Type, 2027-2033
8.3. Tier 1 and 2
8.4. Tier 3
8.5. Tier 4
9. South America Data Center Market, By Absorption (USD Million) 2020-2033
9.1. South America Data Center Market Size, Share and Forecast, By Absorption, 2020-2026
9.2. South America Data Center Market Size, Share and Forecast, By Absorption, 2027-2033
9.3. Non-Utilized
9.4. Utilized
9.4.1. By Colocation Type
9.4.2. By End User
10. South America Data Center Market Forecast, 2020-2033 (USD Million)
10.1. South America Data Center Market Size and Market Share
11. South America Data Center Market, By Region, 2020-2033 (USD Million)
11.1. South America Data Center Market Size and Market Share By Region (2020-2026)
11.2. South America Data Center Market Size and Market Share By Region (2027-2033)
11.3. Brazil
11.4. Chile
11.5. Rest of South America
12. Company Profile
12.1. Ascenty (Digital Realty Trust Inc.)
12.1.1. Company details
12.1.2. Financial outlook
12.1.3. Product summary
12.1.4. Recent developments
12.2. EdgeUno Inc
12.2.1. Company details
12.2.2. Financial outlook
12.2.3. Product summary
12.2.4. Recent developments
12.3. Equinix Inc
12.3.1. Company details
12.3.2. Financial outlook
12.3.3. Product summary
12.3.4. Recent developments
12.4. GTD Grupo Teleductos SA
12.4.1. Company details
12.4.2. Financial outlook
12.4.3. Product summary
12.4.4. Recent developments
12.5. HostDime Global Corp
12.5.1. Company details
12.5.2. Financial outlook
12.5.3. Product summary
12.5.4. Recent developments
12.6. Lumen Technologies Inc
12.6.1. Company details
12.6.2. Financial outlook
12.6.3. Product summary
12.6.4. Recent developments
12.7. NABIAX
12.7.1. Company details
12.7.2. Financial outlook
12.7.3. Product summary
12.7.4. Recent developments
12.8. ODATA (Patria Investments Ltd)
12.8.1. Company details
12.8.2. Financial outlook
12.8.3. Product summary
12.8.4. Recent developments
12.9. Quantico Data Center
12.9.1. Company details
12.9.2. Financial outlook
12.9.3. Product summary
12.9.4. Recent developments
12.10. Scala Data Centers
12.10.1. Company details
12.10.2. Financial outlook
12.10.3. Product summary
12.10.4. Recent developments
12.11. SONDA SA
12.11.1. Company details
12.11.2. Financial outlook
12.11.3. Product summary
12.11.4. Recent developments
12.12. Terremark (Verizon)
12.12.1. Company details
12.12.2. Financial outlook
12.12.3. Product summary
12.12.4. Recent developments
12.13. Others
13. Conclusion
14. List of Abbreviations
15. Reference Links
SPER Market Research’s methodology uses great emphasis on primary research to ensure that the market intelligence insights are up to date, reliable and accurate. Primary interviews are done with players involved in each phase of a supply chain to analyze the market forecasting. The secondary research method is used to help you fully understand how the future markets and the spending patterns look likes.
The report is based on in-depth qualitative and quantitative analysis of the Product Market. The quantitative analysis involves the application of various projection and sampling techniques. The qualitative analysis involves primary interviews, surveys, and vendor briefings. The data gathered as a result of these processes are validated through experts opinion. Our research methodology entails an ideal mixture of primary and secondary initiatives.
