Rise in Cloud-based Services driving Latin American Data Center Market - AriztonThe growing digitalization initiative is one of the major Latin American data center market trends.
Arizton’s recent market research report on Latin America data center market provides comprehensive industry analysis, trend forecasts, and competitive analysis. The study includes insights on the segmentation by IT Infrastructure (servers, storage, and network) Electrical Infrastructure (uninterruptible power supply (UPS) systems, generators, rack power distribution units (PDU), transfer switches & switchgears, and other), Mechanical Infrastructure (cooling systems (CRAC & CRAH units, chiller units, cooling towers, dry coolers & condensers, and other cooling units), racks, and Other mechanical infrastructure), General Construction (building development, installation and commissioning services, building designs, physical security, data center infrastructure management (DCIM) & building management systems (BMS)), Tier Standards (Tier I and II, Tier III, and Tier IV), and Geography (Brazil, Chile, Colombia, and Rest of Latin America).
The Latin American data center market is expected to grow at a CAGR of over 6% during the period 2019−2025.
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Latin America has witnessed with strong internet penetration over the past few years due to the increasing number of mobile and handheld devices that need high-speed network connectivity. The growing digitalization initiative is one of major Latin American data center market trends. The internet penetration in Latin American countries is growing at a rate of 2−5% YOY. In December 2018, around 65% of active members accessed social networks, which has increasingly been growing in recent years. In the last decade, the increase in adoption of technologies such as cloud-based services, Internet of Things (IoT), and big data analytics has increased the number of data centers in Latin America. The adoption of these technologies has led to an increase in IP traffic. Government bodies in Latin America are working to strengthen internet connectivity and speed. Factors such as e-commerce and online financial transactions will continue to increase, leading to the adoption of cloud-based technology.
The Latin American data center market is segmented into IT infrastructure, electrical infrastructure, mechanical infrastructure, general construction, tier standards, and geography.
High Application of Big Data and IoT Technologies
In Latin America, the increasing adoption of smartphone and connected devices has increased in the past three years. The implementation of 4G network in the region is increasing the number of connected devices and internet users. Countries such as Brazil and Argentina have witnessed rapid increase in internet users. The big data analytics market is dominant in countries such as Brazil, Mexico, Argentina Chile and Colombia. Brazil dominates the market followed by Mexico and Colombia. The Increasing connectivity and deployment of edge data centers will help organizations to analyze IoT collected data. IoT plays an important role in adoption of big data analytics solutions. More than 50% of startups have adopted advanced technology in early stages.
Growth in Network Connectivity & High-speed Bandwidth
The high adoption of cloud computing, big data, and IoT services has prompted telecommunication providers in the region to strengthen their internet infrastructure. The South Atlantic Inter Link (SAIL) included the completion of a 6,000-km-long optical fiber, linking Kribi, Cameroon, and Fortaleza in Brazil. The cable system has the capacity to deliver a data speed of 32 Tbps through a 4-fiber pair configuration. Similarly, in 2019, Google landed its private submarine cable, Curie, in Valparaíso, Chile. The cable is directly connected to the Equinix LA4 data center in Los Angeles, California. Curie supports four 18 Tbps fiber-optic pairs, providing 72 Tbps total bandwidth. Google and Facebook are heavily investing in submarine cables in Latin America since these companies have an increasing demand for data center traffic in the region.
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Adoption of Flash Storage Solutions
In terms of storage, enterprises operating large data centers in Latin America have started to procure high-performance HDD drives of 10,000 and 15,000 revolutions per minute (RPM) with a capacity of over 10 trillion bytes (TB) per drive. However, the use of low-capacity hard disc drives (HDD) for backup purposes is still high among data centers because of their procurement cost. The use of HDD drives is also high among small and medium enterprises operating in the on-premise data center environment. While a majority of enterprises such as AWS, Microsoft, and Google are operating through cloud platforms, the use of storage includes a combination of flash and HDD arrays depending on the workload.
Hewlett Packard Enterprise (HPE), Cisco, Dell Technologies, Huawei, and IBM are prominent (IT) Infrastructure Providers in the Latin American data center market.
ABB, Eaton, Rittal, KINOLT (Euro-Diesel), Schneider Electric, STULZ, and Vertiv are prominent support infrastructure providers in the Latin American data center market.
AECOM, Constructora Sudamericana S.A., Flexenclosure, Aceco TI, and ZFB Group are prominent construction contractors in the Latin American data center market.
Bridge Data Centres, Ascenty, Equinix, Google, ODATA and Tigo (Millicom) are the Prominent Data Center Investors in the Latin American data center market.
The complete overview of the latest market research report on the data center market in Latin America by Arizton is now available.
The report offers a detailed study of major trends, drivers, challenges and provides market sizing and forecast for major geographical regions and key countries.
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