Market Trends of Chile Data Center Cooling Industry
The IT and Telecom Segment is Expected to Hold a Significant Market Share
- As companies increasingly shift their operations to the cloud and remote servers, the rising adoption of the internet and e-commerce, particularly in finance and other sectors, is driving the demand for colocation services in the country.
- In December 2023, Oracle unveiled its second Oracle Cloud Region in Chile, marking it as the first hyperscaler to establish two regions in the nation. With the newly introduced Oracle Cloud Valparaíso Region complementing the existing Santiago location, Oracle is poised to bolster business continuity for organizations across Chile, all while ensuring compliance with data residency and sovereignty mandates.
- Businesses are increasingly relying on third-party colocation facilities to run their data centers, which is supplemented by a growing move toward a hybrid IT strategy that uses the synergistic benefits of hosted data centers and multi-cloud architectures. Users can easily access the cloud service due to the high-speed internet available at data centers that house the cloud servers. MNCs are expected to enter Chile and contribute to data growth with their cloud-based services.
- For instance, Amazon Web Services (AWS) plans to build a cloud area in Santiago, Chile. The business has a Cloudfront Edge site in Santiago and intends to open a local zone soon. While Microsoft is creating a cloud region in Chile, Oracle, Google, and other companies have already established Chilean cloud regions. Huawei announced plans for its third facility.
- In recent years, Chile has emerged as a frontrunner in digital connectivity across Latin America and the Caribbean, notably in the realm of 5G deployment. Chile aims to extend 5G coverage to all urban areas nationwide by 2025, building on its achievement of covering an impressive 50% of these areas. Such instances in the market are expected to create more need for data centers, boosting the demand for data center cooling infrastructure manufacturers in the coming years.
Understand The Key Trends Shaping This Market
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Liquid Cooling to Hold a Significant Market Share
- Liquid cooling offers many benefits in data centers, making it an attractive option for cooling computing environments with high performance. It is more energy-efficient than conventional air conditioning. By providing precise temperature control, it reduces the need for overcooling and improves data center energy efficiency.
- In Chile, in order to serve the growing requirement of data storage in the region, the key data center operators are coming up with huge IT load capacities, resulting in generating more heat from the servers, which require cooling solutions that provide efficiency and capacity benefits. In April 2024, Equinix unveiled plans to establish a data center in Santiago, Chile. Situated in the Pudahuel district, the ST5 facility will feature 16 data rooms and office space spread across two floors, covering a total area of 24,420 sq. m (263,000 sq. ft). With an estimated investment of USD 130 million, the ST5 facility will occupy a gross land area of 42,400 sq. m (456,000 sq. ft). Construction is slated to kick off in May 2025, with the inaugural phase set for completion in April 2027.
- Numerous foreign organizations, including ECLAC (Economic Commission for Latin America and the Caribbean), have offices in Santiago. The local tech industry has gained momentum as a result of these established organizations. Santiago offers businesses a supportive environment and government assistance to foster rapid technological innovation. Chile's exceptional connectivity has benefited these large enterprises. The country's 5G technology and continental and intercontinental fiber optics make the region more appealing for investment.
- Technological advances have helped reduce data centers' water consumption by more than 15% in tropical climates and 80% in green areas, making liquid cooling easier to maintain, scale up, or be affordable. Energy used for liquid cooling can be recycled to heat buildings and drinking water, while advanced artificial refrigerants can significantly reduce the carbon footprint of air conditioners.
- Liquid cooling takes advantage of space constraints and superior heat transfer properties of water or other liquids to provide efficient and cost-effective cooling of high-density racks up to 3,000 times more efficiently than air. Long proven in mainframe and gaming applications, liquid cooling is increasingly being used to protect rack servers in regional data centers. Recently, Vertiv introduced a water-efficient liquid cooling solution for high-density data centers, the Liebert XDU, a new generation of thermal management systems that supports liquid-cooled servers and enables the control of liquid quality, flow, and pressure.
