Latin America Data Center Server Market to Hit $4.24 Billion by 2027. Adoption of Open Compute Project (OCP) Servers Creating Enormous Opportunities for Vendors - Arizton

According to the latest research report by Arizton, the Latin America data center server market is expected to grow at a CAGR of 6.9% during 2022-2027. In recent years, enterprises have been showing an increasing interest in the adoption of OCP servers. In 2011, Facebook started OCP, which currently has a community of over 200 members, including data center operators and infrastructure providers. It also includes vendors such as Hewlett Packard Enterprise and Broadcom. Over the years, the project has brought about multiple innovations in the data center industry across the network infrastructures.

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OCP Adoption by Various Vendors

In recent years, enterprises have been showing an increasing interest in the adoption of OCP servers. Many colocation providers are also building hyperscale OCP-ready data centers that aid the adoption of OCP network architecture. OCP-ready data centers are being built to attract OCP members and are developing to be a platform for non-members to run their applications in OCP infrastructure solutions.

Brazil leads the Latin American data center market, accounting for more than half of all investments in the region, owing to rising internet penetration and business adoption of cloud-based services. In 2021, the major data center service providers invested in Brazil included Ascenty, Equinix, Scala Data Centers, Ava Telecom, and Quantico. In terms of investment, São Paulo is the preferred location, with major investments from colocation service providers such as Equinix, Scala Data Centers, and Ava Telecom.

The growing data traffic in Latin America is increasing the need for high-performance infrastructure that operates at reduced latency in the market. The server market growth is expected to grow during the forecast period as the market is witnessing investments from telecom & colocation data center operators. It is expected that the adoption of servers using advanced technologies will replace traditional servers in data centers. Server refresh is also being done in many existing data center facilities in the region.

Hewlett Packard Enterprise is a leading vendor in the server market. The average selling price of its server infrastructure increased along with unit shipments. Server demand has grown in the past year through the higher deployment of infrastructure for artificial intelligence and big data analytics workloads. The demand for converged and hyperconverged solutions also experienced strong growth in the market. Vendor collaborations with local service providers, specifically from telecommunications services and multinational organisations operating throughout Latin America, will be critical to gain a significant market share. Vendors must also expand their market reseller and distribution base, as many enterprises rely on local consultants and IT service providers for their digital transformation initiatives.

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