Latin America Data Center Cooling Market Size (2024 - 2029)

The Latin America Data Center Cooling Market is experiencing significant growth driven by the increasing digitization of data and the rising demand for efficient cooling solutions in data centers. The shift towards liquid air cooling technologies is gaining traction due to their cost-effectiveness and suitability for high-performance processors and GPUs. The deployment of green data centers, supported by regulatory initiatives and sustainability goals, is further propelling the demand for eco-friendly cooling systems. Advanced monitoring systems and analytical tools are being utilized to enhance reliability and efficiency, adapting to dynamic workloads and varying cooling needs. The growing energy consumption in data centers, accelerated by the rise in teleworking and internet activities, is also contributing to the development of sustainable cooling technologies.

Market Size of Latin America Data Center Cooling Industry

Latin America Data Center Cooling Market Summary
Study Period 2018 - 2030
Base Year For Estimation 2023
Market Size (2024) USD 0.2 Billion
Market Size (2030) USD 0.48 Billion
CAGR (2024 - 2030) 13.45 %
Market Concentration Medium

Major Players

Latin America Data Center Cooling Market Major Players

*Disclaimer: Major Players sorted in no particular order

Latin America Data Center Cooling Market Analysis

The Latin America Data Center Cooling Market size is estimated at USD 0.2 billion in 2024, and is expected to reach USD 0.48 billion by 2030, growing at a CAGR of 13.45% during the forecast period (2024-2030).

The growth of the Latin American data center cooling market is fueled by the rising adoption of cloud-based services, the region's expanding digital economy, increased integration of AI technologies, the ongoing deployment of 5G networks, and a notable shift toward renewable energy sourcing.

Under Construction IT Load Capacity: The upcoming IT load capacity of the Latin American data center market is expected to reach around 2,400 MW by 2030.

Under Construction Raised Floor Space: The region's construction of raised floor area is expected to increase by 8.6 million sq. ft by 2030.

Planned Racks: The region's total number of racks to be installed is expected to reach 430K units by 2030.

Planned Submarine Cables: Many submarine cable systems are under construction in the region. One such submarine cable, estimated to be built by the end of 2024, is Firmina, which stretches over 14,517 km with landing points in Las Toninas, Argentina; Praia Grande, Brazil; Myrtle Beach, SC, United States; and Punta del Este, Uruguay.

Latin America Data Center Cooling Industry Segmentation

Data center cooling refers to the collective equipment, tools, techniques, and processes that ensure an ideal operating temperature within a data center facility. With increasing capacity and higher density, there is an increasing need for energy-efficient cooling of IT equipment.

The Latin American data center cooling market is segmented into technology (air-based cooling [chillers and economizers, CRAH, cooling towers, and other air-based cooling technologies] and liquid-based cooling (immersion cooling, direct-to-chip cooling, and rear-door heat exchanger]), type of data center (hyperscaler, enterprise, and colocation), and end-user industry (IT and telecom, retail and consumer goods, healthcare, media and entertainment, federal and institutional agencies, and other end-user industries). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

By Cooling Technology
Air-based Cooling
Chiller and Economizer
CRAH
Cooling Tower (covers direct, indirect, and two-stage cooling)
Other Air-based Cooling Technologies
Liquid-based Cooling
Immersion Cooling
Direct-to-Chip Cooling
Rear-Door Heat Exchanger
By Type
Hyperscalers (owned & Leased)
Enterprise (On-premise)
Colocation
By End-user Industry
IT and Telecom
Retail and Consumer Goods
Healthcare
Media and Entertainment
Federal and Institutional agencies
Other End-user Industries
By Country
Brazil
Mexico
Chile
Rest of Latin America
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Latin America Data Center Cooling Market Size Summary

The Latin America data center cooling market is experiencing significant growth, driven by the increasing digitization of data and the rising demand for data centers. As digital infrastructure becomes more integral to daily life, the need for efficient cooling solutions in data centers is paramount to ensure optimal performance and prevent costly failures. The market is witnessing a shift from traditional air cooling technologies to more advanced liquid cooling systems, which are becoming more viable due to technological advancements and the need for high-performance processing capabilities. The deployment of eco-friendly and energy-efficient cooling systems is also gaining traction, supported by regulatory incentives and sustainability goals. This trend is further fueled by the growing adoption of green data centers, which integrate renewable energy sources and energy-efficient technologies to reduce environmental impact.

The demand for data center cooling solutions is further amplified by the expansion of cloud services, artificial intelligence, and the Internet of Things, which require robust and scalable cooling infrastructures. The rise in teleworking and internet activities, particularly post-COVID-19, has led to increased energy consumption in data centers, prompting developments in sustainable cooling technologies. In Latin America, the rapid adoption of modern cooling technologies, such as direct-to-chip and advanced heat management systems, is being driven by the need to support high-density infrastructures and maximize operational efficiency. The market is highly competitive, with key players focusing on strategic partnerships, acquisitions, and product innovations to offer comprehensive cooling solutions. Recent advancements, such as Stulz's CyberCool CDU and Mitsubishi Heavy Industries' hybrid cooling system, highlight the ongoing innovation in the sector, catering to the evolving needs of hyperscale data centers and high-performance computing applications.

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Latin America Data Center Cooling Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Key Cost Considerations for Cooling

      1. 1.2.1 Analysis of the Key Cost Overheads Related to DC Operations With an Eye on DC Cooling

      2. 1.2.2 Comparative Study of the Cost and Operational Considerations Related to Each Cooling technology Based on Key Factors Such as Design Complexity, PUE, Advantages, Drawbacks, Extent Of Utilization Of Natural Weather Conditions)

      3. 1.2.3 Key innovations and developments in Data Center Cooling

      4. 1.2.4 Key energy efficiency practices adopted in Data Centers

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Cooling Technology

      1. 2.1.1 Air-based Cooling

        1. 2.1.1.1 Chiller and Economizer

        2. 2.1.1.2 CRAH

        3. 2.1.1.3 Cooling Tower (covers direct, indirect, and two-stage cooling)

        4. 2.1.1.4 Other Air-based Cooling Technologies

      2. 2.1.2 Liquid-based Cooling

        1. 2.1.2.1 Immersion Cooling

        2. 2.1.2.2 Direct-to-Chip Cooling

        3. 2.1.2.3 Rear-Door Heat Exchanger

    2. 2.2 By Type

      1. 2.2.1 Hyperscalers (owned & Leased)

      2. 2.2.2 Enterprise (On-premise)

      3. 2.2.3 Colocation

    3. 2.3 By End-user Industry

      1. 2.3.1 IT and Telecom

      2. 2.3.2 Retail and Consumer Goods

      3. 2.3.3 Healthcare

      4. 2.3.4 Media and Entertainment

      5. 2.3.5 Federal and Institutional agencies

      6. 2.3.6 Other End-user Industries

    4. 2.4 By Country

      1. 2.4.1 Brazil

      2. 2.4.2 Mexico

      3. 2.4.3 Chile

      4. 2.4.4 Rest of Latin America

Latin America Data Center Cooling Market Size FAQs

The Latin America Data Center Cooling Market size is expected to reach USD 0.2 billion in 2024 and grow at a CAGR of 13.45% to reach USD 0.48 billion by 2030.

In 2024, the Latin America Data Center Cooling Market size is expected to reach USD 0.2 billion.

Latin America Data Center Cooling Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)