Study Period | 2018 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Market Volume (2025) | 1.33 Thousand MW |
Market Volume (2030) | 2.04 Thousand MW |
CAGR | 8.86 % |
Market Concentration | Medium |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
South America Data Center Market Analysis
The South America Data Center Market size is estimated at 1.33 thousand MW in 2025, and is expected to reach 2.04 thousand MW by 2030, growing at a CAGR of 8.86%. Further, the market is expected to generate colocation revenue of USD 5,009.1 Million in 2025 and is projected to reach USD 8,524.7 Million by 2030, growing at a CAGR of 11.22% during the forecast period (2025-2030).
The South American data center landscape is undergoing significant transformation driven by increasing digital infrastructure investments and sustainable energy initiatives. The region's commitment to renewable energy is particularly noteworthy, with countries like Chile leading the charge, where renewable sources now constitute 46% of total energy production, resulting in energy costs dropping to one-third of previous levels. This shift towards sustainable energy is complemented by robust connectivity infrastructure, with the region now connected by 68 submarine cables, significantly enhancing data center transmission capabilities and reliability. The integration of sustainable practices and enhanced connectivity has positioned South America as an emerging hub for data center operations.
The market is witnessing substantial technological advancement and infrastructure modernization across major economies. In January 2023, the Brazilian telecom services company Telecall announced plans to expand its fiber optics network to interconnect the main data center facilities in Rio de Janeiro, with three new redundant and underground fiber routes totaling 80 km. This expansion demonstrates the region's commitment to developing robust digital data center infrastructure. The technological landscape is further enriched by a thriving startup ecosystem, with over 23,400 new technology-focused businesses emerging in recent years, driving demand for advanced data center services.
Government initiatives and digital transformation strategies are playing a pivotal role in shaping the market landscape. The Chilean government has embarked on an ambitious plan to completely digitize all national services by 2023, supported by a USD 9.1 million investment in creating a digital center encompassing 5G development and fiber optics infrastructure. Similarly, the Brazilian government is actively implementing its Digital Transformation Strategy, focusing on improving public services and digital inclusion through enhanced data center infrastructure and connectivity solutions.
The market is characterized by a strong emphasis on certification and operational excellence, particularly in established markets. In Brazil, 58 data centers achieved Tier 3 certification in 2022, highlighting the industry's commitment to maintaining high standards of reliability and performance. This trend towards certification is accompanied by significant investments in infrastructure modernization, with major operators expanding their facilities and implementing advanced technologies. The industry's focus on operational excellence is further supported by various government incentives and programs designed to promote infrastructure development and technological advancement throughout the region. The emergence of green data centers is also contributing to the region's sustainable development goals.
South America Data Center Market Trends
The high internet and smartphone technology adoption by various businesses and growing digital usage across the region drives the market demand
- In 2020, mobile technologies and services accounted for 7.1% of GDP in Latin America – a contribution that amounted to more than USD 340 billion of economic value added. The mobile ecosystem also supported more than 1.6 million jobs (directly and indirectly). By 2025, the economic contribution of the Latin American mobile ecosystem will grow by more than USD 30 billion as countries in the region increasingly benefit from the improvements in productivity and efficiency brought about by the increased take-up of mobile services.
- Digital usage is expanding rapidly in Brazil. The high internet and smartphone technology adoption by various businesses has impacted consumer behavior. More people in the country can now purchase smartphones, leading to a growing number of smartphone users. In May 2020, most shopping apps downloaded in South America were developed in Brazil, which stood out with approximately 44 million app downloads in this category.
- In Chile, e-commerce is expanding steadily. Chile's average annual revenue per paying user amounted to USD 913 in 2020. Most cross-border e-commerce purchases by Chilean shoppers stand at 69%. As a result, vast amounts of data have been created, increasing the demand for data centers nationwide. In South America, the transition to 5G is progressing rapidly, driven by the continued rollout of new networks, the expansion of the device ecosystem, and the development of new applications for consumers and enterprises.
People across the region increasingly reliant on the internet for banking, business, & telecommunication services and increasing FTTH subscribers across the region drives the market growth
- In South America and the Caribbean, less than 50% of the population has access to fixed broadband internet, and only 9.9% has fiber internet access. Many rural areas have patchy network coverage due to expensive network equipment. Chile has set the standard for other countries to follow in fixed broadband. Chile has the fastest data download speeds in Latin America. With an average rate of 219 Mbps, Chile is well ahead of the region's largest economy, Brazil, where internet download speeds average 95.95 Mbps.
- The Brazilian population became increasingly reliant on the internet for banking, business, telecommunication, and leisure during the COVID-19 pandemic. However, the country ranked 49th globally for fixed broadband speed and 74th for mobile speed as of April 2021. This shows that access to the internet and broadband speed are growing rapidly, meaning data centers will benefit from faster data transfer, higher storage rates, and lower latency.
- Latin America's fiber-to-the-home (FTTH) market was set to register approximately 105 million homes with fiber in 2022, an increase of 36%, or 28 million new premises, compared with the end of 2021. Latin America now has a fiber penetration rate of nearly 61%. In terms of investment, in 2021, to penetrate the fixed broadband (FTTH) market, Chilean mobile operator WOM teamed with digital enablement and revenue management software company Aleppo.
OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- 4G’s growth and 5G standalone (SA) deployments, growing critical IoT capabilities, and increasing 5G mobile subscriptions drives the market growth
- Increasing share of fiber-to-the-premises households, and investments in fiber rollouts drives the market demand
- Quick adoption of 5G network, availability of commercial 5G in the 3.5GHz band, and growing internet population drives the market growth
Segment Analysis: Data Center Size
Large Segment in South American Data Center Market
The large data center segment dominates the South American market, accounting for approximately 44% market share in 2024. With around 41 facilities across the region, these data centers have a combined IT load capacity of over 512 MW, primarily concentrated in Brazil and Chile. Major providers like Ascenty Data Centers and Equinix Inc. maintain a significant presence in this segment, with Equinix operating over 12,000 racks and Ascenty managing more than 19,000 racks. The segment's growth is primarily driven by increasing investments in key locations like Sao Paulo and Rio de Janeiro, where providers are actively expanding their infrastructure to meet rising demand. The presence of over 2,600 startups in Sao Paulo alone, operating across 34 sectors, further reinforces the need for large data center facilities in the region.
![Market Analysis of South America Data Center Market: Chart for Data Center Size](https://s3.mordorintelligence.com/south-america-data-center-market/south-america-data-center-market-South-American-Data-Center-Market-Market-Share-by-Size-Segment-2024-1737434889815.webp)
Mega Segment in South American Data Center Market
The mega data center segment is experiencing remarkable growth in the South American market, projected to expand at approximately 58% CAGR from 2024 to 2029. This exceptional growth is primarily driven by substantial investments in Brazil, where around 196 MW of IT load capacity is under development by Scala Data Centers. The segment's expansion is further supported by the increasing adoption of 5G technology, with expectations that around 43% of mobile subscriptions in South America will be 5G-based by 2026. The Brazilian government's active role in developing local data center infrastructure, particularly through collaboration with the DPA on digital transformation initiatives, is creating a conducive environment for mega data center development. The segment's growth is also bolstered by the rising demand from end users who increasingly prefer hyperscale data center facilities over retail facilities.
Remaining Segments in Data Center Size Market
The massive, medium, and small segments each play distinct roles in the South American data center market. The massive segment caters to large-scale operations with significant power requirements, particularly in Chile and Brazil, benefiting from favorable electricity pricing and renewable energy adoption. The medium segment serves a diverse range of businesses with moderate computing needs, with facilities predominantly concentrated in Chile, Brazil, Colombia, and Argentina. The small segment primarily supports regional and local operations, particularly in developing markets like Uruguay, Peru, and Bermuda, where the focus remains on serving small and medium enterprises with specific local requirements.
Segment Analysis: Tier Type
Tier 3 Segment in South American Data Center Market
The Tier 3 segment dominates the South American data center market, commanding approximately 64% of the market share in 2024. This significant market position is attributed to its comprehensive redundancy capabilities and high availability features, with facilities designed to maintain no more than 1.6 hours of unplanned downtime annually. Brazil hosts the region's maximum number of Tier 3 data centers, with major concentrations in Sao Paulo and Rio de Janeiro. Leading providers in this segment include GTD Group, Ascenty Data Centers, Equinix Inc., Scala Data Centers, and ODATA, with Ascenty Data Centers, ODATA, and Equinix Inc. holding substantial market shares. The segment's prominence is further reinforced by the preference of small and medium-sized businesses (SMEs) for Tier 3-rated systems due to their superior redundancy protections, particularly significant as SMEs comprise 99.5% of firms in the region.
Tier 4 Segment in South American Data Center Market
The Tier 4 segment is positioned as the fastest-growing segment in the South American data center market, projected to expand at approximately 21% CAGR from 2024 to 2029. This remarkable growth trajectory is driven by the increasing adoption of hyperscale colocation data center facilities by major end users in the cloud and telecom industries. The segment's growth is particularly notable in countries such as Chile, Brazil, and Curacao, where new Tier 4 facilities are under construction. Major players in the market, including Scala Data Centers and Equinix, are focusing on Tier 4 facility construction to meet the demanding requirements of modern computing and cloud solutions. These facilities provide the highest level of fault tolerance and redundancy, offering 99.995% uptime annually, which translates to less than 0.5 hours of downtime per year.
Remaining Segments in Tier Type
The Tier 1 & 2 segment represents the basic level of data center infrastructure in the South American market. These tiers are predominantly adopted in developing countries with lower GDP rates and regions with a high concentration of SMEs that cannot afford higher-tier facilities. Countries such as Bolivia, Paraguay, Suriname, and Ecuador primarily utilize these tiers, with providers like GTD Group, Ultranet, and Baehost maintaining one or more Tier 1 & 2 facilities. While these segments offer more cost-effective solutions, they provide limited redundancy and availability compared to higher tiers, making them suitable for organizations with basic infrastructure needs and budget constraints.
Segment Analysis: Absorption
Utilized Segment in South American Data Center Market
The utilized segment dominates the South American data center market, accounting for approximately 83% of the total IT load capacity in 2024. This significant market share is driven by the increasing adoption of cloud services, digital transformation initiatives, and the growing demand from various end-user industries, including BFSI, cloud service providers, and telecom sectors. The segment's dominance is particularly evident in major markets like Brazil and Chile, where data center operators are experiencing high utilization rates due to the surge in digital services adoption. The development of solid fiber connectivity infrastructure and increasing reliability in power supply have further strengthened the position of utilized capacity in the market. Additionally, the growing trend toward 5G connectivity and the adoption of green energy solutions by data center operators have contributed to maintaining high utilization rates across the region.
Utilized Segment Growth in South American Data Center Market
The utilized segment is experiencing robust growth in the South American data center market, driven by multiple factors enhancing its expansion trajectory through 2024-2029. The segment's growth is fueled by the increasing trend toward hyperscale colocation data center facilities and the rising demand from cloud service providers. Private equity funds are actively promoting new data center projects across the region, particularly in Brazil, Chile, Argentina, and Colombia, contributing to the segment's expansion. The implementation of 5G technology and the growing adoption of renewable energy sources are creating additional demand for utilized capacity. Furthermore, the segment's growth is supported by the increasing rack power density, which is expected to reach between 8-10 kW during the forecast period, driven by the growing need for high-performance computing solutions and virtualization technologies.
South America Data Center Market Geography Segment Analysis
Data Center Market in Brazil
Brazil dominates the South American data center landscape, commanding approximately 64% of the regional data center market share in 2024. The country's digital economy demonstrates significant potential for continued growth, with major hotspots concentrated in Sao Paulo and data center Rio de Janeiro. The Brazilian government plays a crucial role in developing local data center infrastructure through initiatives like the Regime Especial de Tributaзгo do Programa Nacional de Banda Larga (REPNBL) program, which provides incentives for infrastructure development. Beyond successful startups, access to capital remains one of the country's strengths, particularly in Sao Paulo, which hosts the majority of Brazil data center market facilities. Rio de Janeiro is emerging as another significant hub, with companies like Telecall expanding their fiber optics network to interconnect the main data centers in the region. The state's commitment to digital transformation is evident through substantial investments in public data processing and IT entities.
Data Center Market in Chile
Chile's data center market is projected to grow at approximately 13% annually from 2024 to 2029, positioning it as the fastest-growing market in South America. The country's appeal stems from its competitive energy prices, primarily fueled by plans to leverage its natural renewable energy generation potential. Santiago, the country's major hotspot, accounts for more than 85% of the data centers in the country, serving as the most important industrial and financial center. The Chilean government's ambitious Digital Transformation Strategy aims to completely digitize all national services, supported by significant investments in digital infrastructure. Beyond Santiago, emerging locations such as Los Andes, Valparaiso, and Temuco are becoming increasingly attractive for hosting data centers, driven by the government's vision to transform Chile into one of the region's most significant digital center hubs.
Data Center Market in Colombia
Colombia has emerged as a significant player in the South American data center market, with substantial investments in infrastructure development favoring the consolidation and growth of the country's tech sector. The country's robust connectivity infrastructure, including 11 submarine cables, provides excellent international connectivity with fast data transmission and stability. Currently, 98% of municipalities in Colombia are connected through a fiber-optic network, creating an ideal environment for Colombia data center market operations. The country's business sector is well-equipped to meet the energy demands of the industrial sector, supported by large companies such as EPM, Gas Natural Fenosa, and Celsia Group. The government's commitment to digital transformation and the increasing presence of international technology companies have further strengthened Colombia's position in the regional data center market.
Data Center Market in Argentina
Argentina's data center market is centered primarily in Buenos Aires, which hosts the majority of the country's data center facilities. The country's commitment to renewable energy development, with a significant portion of electricity capacity already coming from renewable sources, creates a sustainable foundation for data center operations. The government's implementation of a 'cloud first' policy and investment in developing a robust national data center at ARSAT demonstrates its commitment to digital infrastructure development. The country's strategic location and growing digital economy make it an attractive destination for data center investments. Argentina's focus on technological innovation and digital transformation initiatives positions it well for future growth in the data center market.
Data Center Market in Other Countries
The data center market in other South American countries, including Uruguay, Peru, Bolivia, Paraguay, Ecuador, Bermuda, and Venezuela, shows varying degrees of development and potential. Peru stands out as an emerging market, particularly in Lima, which houses over 80% of the country's existing data centers. Paraguay's abundant renewable energy resources, particularly hydropower, make it an attractive location for future data center investments. Uruguay's stable political environment and growing digital infrastructure create favorable conditions for data center development. These countries are experiencing different levels of digital transformation and infrastructure development, influenced by factors such as government initiatives, private sector investments, and regional connectivity projects. While these markets may be smaller individually, they collectively contribute to the region's growing South American data centers ecosystem and offer unique opportunities for future expansion.
South America Data Center Industry Overview
Top Companies in South America Data Center Market
The market is characterized by significant investments in infrastructure expansion and technological advancement from leading players like Ascenty, ODATA, Equinix, and Scala Data Centers. Companies are increasingly focusing on sustainable operations by adopting renewable energy sources and implementing energy-efficient cooling systems. Strategic partnerships with cloud service providers, telecom operators, and technology vendors have become crucial for expanding data center services offerings and market reach. Operational excellence is being achieved through automation, standardization of processes, and implementation of advanced monitoring systems. Geographic expansion strategies are primarily centered around key metropolitan areas with high digital demand, while product innovation efforts are directed towards offering flexible colocation options and enhanced connectivity services. The industry is witnessing a trend towards developing carrier-neutral facilities and establishing robust fiber connectivity networks to meet growing interconnection demands.
Market Consolidation Drives Regional Data Center Growth
The South American data center market exhibits a mix of global infrastructure providers and regional specialists, with international players holding significant market share through strategic acquisitions and greenfield investments. Market consolidation is actively occurring through mergers and acquisitions, particularly in Brazil and Chile, as larger operators seek to expand their footprint and capitalize on emerging opportunities. The competitive landscape is characterized by the presence of both established telecommunications companies diversifying into data center operations and specialized colocation providers focusing on specific market segments.
The market structure is evolving with increasing participation from international investment firms and infrastructure funds, leading to enhanced capital availability for expansion projects. Regional players are strengthening their positions through strategic partnerships and joint ventures, particularly in secondary markets. The industry is witnessing a transformation as traditional telecom operators spin off their data center assets into separate entities or form partnerships with specialized operators. Market dynamics are influenced by the increasing presence of hyperscale cloud providers, driving demand for wholesale colocation services and influencing facility design specifications.
Innovation and Sustainability Drive Future Success
Success in the market increasingly depends on operators' ability to deliver sustainable, energy-efficient facilities while maintaining competitive pricing structures. Established players are focusing on expanding their service portfolios to include edge computing capabilities, enhanced connectivity options, and value-added data center solutions to maintain market leadership. The ability to secure strategic locations, develop robust power infrastructure, and establish strong relationships with local utilities and government authorities has become crucial for market success. Companies are investing in advanced security systems, obtaining relevant certifications, and developing specialized expertise to serve highly regulated industries.
Market contenders can gain ground by focusing on underserved markets, developing specialized solutions for specific industry verticals, and leveraging technological innovations to differentiate their offerings. The increasing adoption of cloud services and digital transformation initiatives across industries presents opportunities for new entrants to establish niche positions. Success factors include the ability to provide flexible colocation options, maintain high operational standards, and develop strong customer relationships. Regulatory compliance, particularly regarding data protection and sovereignty requirements, continues to shape market dynamics and influence facility design and operational practices. The development of comprehensive sustainability strategies, including renewable energy adoption and efficient resource management, is becoming increasingly important for long-term success. Companies are also focusing on data center management to optimize operations and ensure high performance.
South America Data Center Market Leaders
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Ascenty (Digital Realty Trust Inc.)
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Equinix Inc.
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HostDime Global Corp.
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Scala Data Centers
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Terremark (Verizon)
- *Disclaimer: Major Players sorted in no particular order
South America Data Center Market News
- November 2022: Ascenty is expected to invest BRL 1.5 billion (USD 290 million) in the construction of five new data centers in South America. The locations of the data centers will be Brazil, Chile, and Colombia.
- October 2022: In Sao Paulo, Brazil, Equinix opened a brand-new hyperscale data center. The new SP5x facility, situated in Santana de Parnaba close to the organization's SP3 IBX data center, has a capacity of roughly 5 MW in its initial phase. After all the phases are finished, the data center should have a total capacity of 14.4 MW. According to the business, it plans to spend USD 116.4 million on the facility.
- August 2022: Scala Data Centers opened a new data center in Sao Paulo, Brazil. At the business' Tamboré campus in Sao Paulo's Barueri neighborhood, SP4 is now operational. With 6 MW of IT power capacity, the site is operational in its initial stage. The second stage of SP4 is anticipated to begin operations in September, adding 6 MW of IT capacity.
Free With This Report
We provide a complimentary and exhaustive set of data points on the country and regional level metrics that present the fundamental structure of the industry. Presented in the form of 50+ free charts, the sections cover difficult to find data on various countries on smartphone users, data traffic per smartphone, mobile and broadband data speed, fiber connectivity network, and submarine cables.
South America Data Center Market Report - Table of Contents
1. EXECUTIVE SUMMARY & KEY FINDINGS
2. REPORT OFFERS
3. INTRODUCTION
- 3.1 Study Assumptions & Market Definition
- 3.2 Scope of the Study
- 3.3 Research Methodology
4. MARKET OUTLOOK
- 4.1 It Load Capacity
- 4.2 Raised Floor Space
- 4.3 Colocation Revenue
- 4.4 Installed Racks
- 4.5 Rack Space Utilization
- 4.6 Submarine Cable
5. Key Industry Trends
- 5.1 Smartphone Users
- 5.2 Data Traffic Per Smartphone
- 5.3 Mobile Data Speed
- 5.4 Broadband Data Speed
- 5.5 Fiber Connectivity Network
-
5.6 Regulatory Framework
- 5.6.1 Brazil
- 5.6.2 Chile
- 5.7 Value Chain & Distribution Channel Analysis
6. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2030 AND ANALYSIS OF GROWTH PROSPECTS)
-
6.1 Data Center Size
- 6.1.1 Large
- 6.1.2 Massive
- 6.1.3 Medium
- 6.1.4 Mega
- 6.1.5 Small
-
6.2 Tier Type
- 6.2.1 Tier 1 and 2
- 6.2.2 Tier 3
- 6.2.3 Tier 4
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6.3 Absorption
- 6.3.1 Non-Utilized
- 6.3.2 Utilized
- 6.3.2.1 By Colocation Type
- 6.3.2.1.1 Hyperscale
- 6.3.2.1.2 Retail
- 6.3.2.1.3 Wholesale
- 6.3.2.2 By End User
- 6.3.2.2.1 BFSI
- 6.3.2.2.2 Cloud
- 6.3.2.2.3 E-Commerce
- 6.3.2.2.4 Government
- 6.3.2.2.5 Manufacturing
- 6.3.2.2.6 Media & Entertainment
- 6.3.2.2.7 Telecom
- 6.3.2.2.8 Other End User
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6.4 Country
- 6.4.1 Brazil
- 6.4.2 Chile
- 6.4.3 Rest of South America
7. COMPETITIVE LANDSCAPE
- 7.1 Market Share Analysis
- 7.2 Company Landscape
-
7.3 Company Profiles (includes Global Level Overview, Market Level Overview, Core Business Segments, Financials, Headcount, Key Information, Market Rank, Market Share, Products and Services, and Analysis of Recent Developments).
- 7.3.1 Ascenty (Digital Realty Trust Inc.)
- 7.3.2 EdgeUno Inc.
- 7.3.3 Equinix Inc.
- 7.3.4 GTD Grupo Teleductos SA
- 7.3.5 HostDime Global Corp.
- 7.3.6 Lumen Technologies Inc.
- 7.3.7 NABIAX
- 7.3.8 ODATA (Patria Investments Ltd)
- 7.3.9 Quantico Data Center
- 7.3.10 Scala Data Centers
- 7.3.11 SONDA SA
- 7.3.12 Terremark (Verizon)
- 7.4 LIST OF COMPANIES STUDIED
8. KEY STRATEGIC QUESTIONS FOR DATA CENTER CEOS
9. APPENDIX
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9.1 Global Overview
- 9.1.1 Overview
- 9.1.2 Porter’s Five Forces Framework
- 9.1.3 Global Value Chain Analysis
- 9.1.4 Global Market Size and DROs
- 9.2 Sources & References
- 9.3 List of Tables & Figures
- 9.4 Primary Insights
- 9.5 Data Pack
- 9.6 Glossary of Terms
List of Tables & Figures
- Figure 1:
- VOLUME OF IT LOAD CAPACITY, MW, SOUTH AMERICA, 2018 - 2030
- Figure 2:
- VOLUME OF RAISED FLOOR AREA, SQ.FT. ('000), SOUTH AMERICA, 2018 - 2030
- Figure 3:
- VALUE OF COLOCATION REVENUE, USD MILLION, SOUTH AMERICA, 2018 - 2030
- Figure 4:
- VOLUME OF INSTALLED RACKS, NUMBER, SOUTH AMERICA, 2018 - 2030
- Figure 5:
- RACK SPACE UTILIZATION, %, SOUTH AMERICA, 2018 - 2030
- Figure 6:
- COUNT OF SMARTPHONE USERS, IN MILLION, SOUTH AMERICA, 2018 - 2030
- Figure 7:
- DATA TRAFFIC PER SMARTPHONE, GB, SOUTH AMERICA, 2018 - 2030
- Figure 8:
- AVERAGE MOBILE DATA SPEED, MBPS, SOUTH AMERICA, 2018 - 2030
- Figure 9:
- AVERAGE BROADBAND SPEED, MBPS, SOUTH AMERICA, 2018 - 2030
- Figure 10:
- LENGTH OF FIBER CONNECTIVITY NETWORK, KILOMETER, SOUTH AMERICA, 2018 - 2030
- Figure 11:
- VOLUME OF IT LOAD CAPACITY, MW, SOUTH AMERICA, 2018 - 2030
- Figure 12:
- VOLUME OF DATA CENTER SIZE, MW, SOUTH AMERICA, 2018 - 2030
- Figure 13:
- VOLUME SHARE OF DATA CENTER SIZE, %, SOUTH AMERICA, 2018 - 2030
- Figure 14:
- VOLUME SIZE OF LARGE, MW, SOUTH AMERICA, 2018 - 2030
- Figure 15:
- VOLUME SHARE OF LARGE, MW, DATA CENTER SIZE, %, SOUTH AMERICA, 2018 - 2030
- Figure 16:
- VOLUME SIZE OF MASSIVE, MW, SOUTH AMERICA, 2018 - 2030
- Figure 17:
- VOLUME SHARE OF MASSIVE, MW, DATA CENTER SIZE, %, SOUTH AMERICA, 2018 - 2030
- Figure 18:
- VOLUME SIZE OF MEDIUM, MW, SOUTH AMERICA, 2018 - 2030
- Figure 19:
- VOLUME SHARE OF MEDIUM, MW, DATA CENTER SIZE, %, SOUTH AMERICA, 2018 - 2030
- Figure 20:
- VOLUME SIZE OF MEGA, MW, SOUTH AMERICA, 2018 - 2030
- Figure 21:
- VOLUME SHARE OF MEGA, MW, DATA CENTER SIZE, %, SOUTH AMERICA, 2018 - 2030
- Figure 22:
- VOLUME SIZE OF SMALL, MW, SOUTH AMERICA, 2018 - 2030
- Figure 23:
- VOLUME SHARE OF SMALL, MW, DATA CENTER SIZE, %, SOUTH AMERICA, 2018 - 2030
- Figure 24:
- VOLUME OF TIER TYPE, MW, SOUTH AMERICA, 2018 - 2030
- Figure 25:
- VOLUME SHARE OF TIER TYPE, %, SOUTH AMERICA, 2018 - 2030
- Figure 26:
- VOLUME SIZE OF TIER 1 AND 2, MW, SOUTH AMERICA, 2018 - 2030
- Figure 27:
- VOLUME SHARE OF TIER 1 AND 2, MW, TIER TYPE, %, SOUTH AMERICA, 2018 - 2030
- Figure 28:
- VOLUME SIZE OF TIER 3, MW, SOUTH AMERICA, 2018 - 2030
- Figure 29:
- VOLUME SHARE OF TIER 3, MW, TIER TYPE, %, SOUTH AMERICA, 2018 - 2030
- Figure 30:
- VOLUME SIZE OF TIER 4, MW, SOUTH AMERICA, 2018 - 2030
- Figure 31:
- VOLUME SHARE OF TIER 4, MW, TIER TYPE, %, SOUTH AMERICA, 2018 - 2030
- Figure 32:
- VOLUME OF ABSORPTION, MW, SOUTH AMERICA, 2018 - 2030
- Figure 33:
- VOLUME SHARE OF ABSORPTION, %, SOUTH AMERICA, 2018 - 2030
- Figure 34:
- VOLUME SIZE OF NON-UTILIZED, MW, SOUTH AMERICA, 2018 - 2030
- Figure 35:
- VOLUME SHARE OF NON-UTILIZED, MW, ABSORPTION, %, SOUTH AMERICA, 2018 - 2030
- Figure 36:
- VOLUME OF COLOCATION TYPE, MW, SOUTH AMERICA, 2018 - 2030
- Figure 37:
- VOLUME SHARE OF COLOCATION TYPE, %, SOUTH AMERICA, 2018 - 2030
- Figure 38:
- VOLUME SIZE OF HYPERSCALE, MW, SOUTH AMERICA, 2018 - 2030
- Figure 39:
- VOLUME SHARE OF HYPERSCALE, MW, COLOCATION TYPE, %, SOUTH AMERICA, 2018 - 2030
- Figure 40:
- VOLUME SIZE OF RETAIL, MW, SOUTH AMERICA, 2018 - 2030
- Figure 41:
- VOLUME SHARE OF RETAIL, MW, COLOCATION TYPE, %, SOUTH AMERICA, 2018 - 2030
- Figure 42:
- VOLUME SIZE OF WHOLESALE, MW, SOUTH AMERICA, 2018 - 2030
- Figure 43:
- VOLUME SHARE OF WHOLESALE, MW, COLOCATION TYPE, %, SOUTH AMERICA, 2018 - 2030
- Figure 44:
- VOLUME OF END USER, MW, SOUTH AMERICA, 2018 - 2030
- Figure 45:
- VOLUME SHARE OF END USER, %, SOUTH AMERICA, 2018 - 2030
- Figure 46:
- VOLUME SIZE OF BFSI, MW, SOUTH AMERICA, 2018 - 2030
- Figure 47:
- VOLUME SIZE OF CLOUD, MW, SOUTH AMERICA, 2018 - 2030
- Figure 48:
- VOLUME SIZE OF E-COMMERCE, MW, SOUTH AMERICA, 2018 - 2030
- Figure 49:
- VOLUME SIZE OF GOVERNMENT, MW, SOUTH AMERICA, 2018 - 2030
- Figure 50:
- VOLUME SIZE OF MANUFACTURING, MW, SOUTH AMERICA, 2018 - 2030
- Figure 51:
- VOLUME SIZE OF MEDIA & ENTERTAINMENT, MW, SOUTH AMERICA, 2018 - 2030
- Figure 52:
- VOLUME SIZE OF TELECOM, MW, SOUTH AMERICA, 2018 - 2030
- Figure 53:
- VOLUME SIZE OF OTHER END USER, MW, SOUTH AMERICA, 2018 - 2030
- Figure 54:
- VOLUME OF COUNTRY, MW, SOUTH AMERICA, 2018 - 2030
- Figure 55:
- VOLUME SHARE OF COUNTRY, %, SOUTH AMERICA, 2018 - 2030
- Figure 56:
- VOLUME SIZE OF BRAZIL, MW, BRAZIL, 2018 - 2030
- Figure 57:
- VOLUME SIZE OF CHILE, MW, CHILE, 2018 - 2030
- Figure 58:
- VOLUME SIZE OF REST OF SOUTH AMERICA, MW, REST OF SOUTH AMERICA, 2018 - 2030
- Figure 59:
- VOLUME SHARE OF MAJOR PLAYERS, %, SOUTH AMERICA
South America Data Center Industry Segmentation
Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption. Brazil, Chile are covered as segments by Country.Data Center Size | Large | |||
Massive | ||||
Medium | ||||
Mega | ||||
Small | ||||
Tier Type | Tier 1 and 2 | |||
Tier 3 | ||||
Tier 4 | ||||
Absorption | Non-Utilized | |||
Utilized | By Colocation Type | Hyperscale | ||
Retail | ||||
Wholesale | ||||
By End User | BFSI | |||
Cloud | ||||
E-Commerce | ||||
Government | ||||
Manufacturing | ||||
Media & Entertainment | ||||
Telecom | ||||
Other End User | ||||
Country | Brazil | |||
Chile | ||||
Rest of South America |
Market Definition
- IT LOAD CAPACITY - The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipments placed in a rack installed. It is measured in megawatt (MW).
- ABSORPTION RATE - It denotes the extend to which the data center capacity has been leased out. For instance, a 100 MW DC has leased out 75 MW, then absorption rate would be 75%. It is also referred as utilization rate and leased-out capacity.
- RAISED FLOOR SPACE - It is an elevated space build over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assist in having proper wiring and cooling infrastructure. It is measured in square feet (ft^2).
- DATA CENTER SIZE - Data Center Size is segmented based on the raised floor space allocated to the data center facilities. Mega DC - # of Racks must be more than 9000 or RFS (raised floor space) must be more than 225001 Sq. ft; Massive DC - # of Racks must be in between 9000 and 3001 or RFS must be in between 225000 Sq. ft and 75001 Sq. ft; Large DC - # of Racks must be in between 3000 and 801 or RFS must be in between 75000 Sq. ft and 20001 Sq. ft; Medium DC # of Racks must be in between 800 and 201 or RFS must be in between 20000 Sq. ft and 5001 Sq. ft; Small DC - # of Racks must be less than 200 or RFS must be less than 5000 Sq. ft.
- TIER TYPE - According to Uptime Institute the data centers are classified into four tiers based on the proficiencies of redundant equipment of the data center infrastructure. In this segment the data center are segmented as Tier 1,Tier 2, Tier 3 and Tier 4.
- COLOCATION TYPE - The segment is segregated into 3 categories namely Retail, Wholesale and Hyperscale Colocation service. The categorization is done based on the amount of IT load leased out to potential customers. Retail colocation service has leased capacity less than 250 kW; Wholesale colocation services has leased capacity between 251 kW and 4 MW and Hyperscale colocation services has leased capacity more than 4 MW.
- END CONSUMERS - The Data Center Market operates on a B2B basis. BFSI, Government, Cloud Operators, Media and Entertainment, E-Commerce, Telecom and Manufacturing are the major end-consumers in the market studied. The scope only includes colocation service operators catering to the increasing digitalization of the end-user industries.
Keyword | Definition |
---|---|
Rack Unit | Generally referred as U or RU, it is the unit of measurement for the server unit housed in the racks in the data center. 1U is equal to 1.75 inches. |
Rack Density | It defines the amount of power consumed by the equipment and server housed in a rack. It is measured in kilowatt (kW). This factor plays a critical role in data center design and, cooling and power planning. |
IT Load Capacity | The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipment placed in a rack installed. It is measured in megawatt (MW). |
Absorption Rate | It denotes how much of the data center capacity has been leased out. For instance, if a 100 MW DC has leased out 75 MW, then the absorption rate would be 75%. It is also referred to as utilization rate and leased-out capacity. |
Raised Floor Space | It is an elevated space built over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assists in having proper wiring and cooling infrastructure. It is measured in square feet/meter. |
Computer Room Air Conditioner (CRAC) | It is a device used to monitor and maintain the temperature, air circulation, and humidity inside the server room in the data center. |
Aisle | It is the open space between the rows of racks. This open space is critical for maintaining the optimal temperature (20-25 °C) in the server room. There are primarily two aisles inside the server room, a hot aisle and a cold aisle. |
Cold Aisle | It is the aisle wherein the front of the rack faces the aisle. Here, chilled air is directed into the aisle so that it can enter the front of the racks and maintain the temperature. |
Hot Aisle | It is the aisle where the back of the racks faces the aisle. Here, the heat dissipated from the equipment’s in the rack is directed to the outlet vent of the CRAC. |
Critical Load | It includes the servers and other computer equipment whose uptime is critical for data center operation. |
Power Usage Effectiveness (PUE) | It is a metric which defines the efficiency of a data center. It is calculated by: (𝑇𝑜𝑡𝑎𝑙 𝐷𝑎𝑡𝑎 𝐶𝑒𝑛𝑡𝑒𝑟 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛)/(𝑇𝑜𝑡𝑎𝑙 𝐼𝑇 𝐸𝑞𝑢𝑖𝑝𝑚𝑒𝑛𝑡 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛). Further, a data center with a PUE of 1.2-1.5 is considered highly efficient, whereas, a data center with a PUE >2 is considered highly inefficient. |
Redundancy | It is defined as a system design wherein additional component (UPS, generators, CRAC) is added so that in case of power outage, equipment failure, the IT equipment should not be affected. |
Uninterruptible Power Supply (UPS) | It is a device that is connected in series with the utility power supply, storing energy in batteries such that the supply from UPS is continuous to IT equipment even during utility power is snapped. The UPS primarily supports the IT equipment only. |
Generators | Just like UPS, generators are placed in the data center to ensure an uninterrupted power supply, avoiding downtime. Data center facilities have diesel generators and commonly, 48-hour diesel is stored in the facility to prevent disruption. |
N | It denotes the tools and equipment required for a data center to function at full load. Only "N" indicates that there is no backup to the equipment in the event of any failure. |
N+1 | Referred to as 'Need plus one', it denotes the additional equipment setup available to avoid downtime in case of failure. A data center is considered N+1 when there is one additional unit for every 4 components. For instance, if a data center has 4 UPS systems, then for to achieve N+1, an additional UPS system would be required. |
2N | It refers to fully redundant design wherein two independent power distribution system is deployed. Therefore, in the event of a complete failure of one distribution system, the other system will still supply power to the data center. |
In-Row Cooling | It is the cooling design system installed between racks in a row where it draws warm air from the hot aisle and supplies cool air to the cold aisle, thereby maintaining the temperature. |
Tier 1 | Tier classification determines the preparedness of a data center facility to sustain data center operation. A data center is classified as Tier 1 data center when it has a non-redundant (N) power component (UPS, generators), cooling components, and power distribution system (from utility power grids). The Tier 1 data center has an uptime of 99.67% and an annual downtime of <28.8 hours. |
Tier 2 | A data center is classified as Tier 2 data center when it has a redundant power and cooling components (N+1) and a single non-redundant distribution system. Redundant components include extra generators, UPS, chillers, heat rejection equipment, and fuel tanks. The Tier 2 data center has an uptime of 99.74% and an annual downtime of <22 hours. |
Tier 3 | A data center having redundant power and cooling components and multiple power distribution systems is referred to as a Tier 3 data center. The facility is resistant to planned (facility maintenance) and unplanned (power outage, cooling failure) disruption. The Tier 3 data center has an uptime of 99.98% and an annual downtime of <1.6 hours. |
Tier 4 | It is the most tolerant type of data center. A Tier 4 data center has multiple, independent redundant power and cooling components and multiple power distribution paths. All IT equipment are dual powered, making them fault tolerant in case of any disruption, thereby ensuring interrupted operation. The Tier 4 data center has an uptime of 99.74% and an annual downtime of <26.3 minutes. |
Small Data Center | Data center that has floor space area of ≤ 5,000 Sq. ft or the number of racks that can be installed is ≤ 200 is classified as a small data center. |
Medium Data Center | Data center which has floor space area between 5,001-20,000 Sq. ft, or the number of racks that can be installed is between 201-800, is classified as a medium data center. |
Large Data Center | Data center which has floor space area between 20,001-75,000 Sq. ft, or the number of racks that can be installed is between 801-3,000, is classified as a large data center. |
Massive Data Center | Data center which has floor space area between 75,001-225,000 Sq. ft, or the number of racks that can be installed is between 3001-9,000, is classified as a massive data center. |
Mega Data Center | Data center that has a floor space area of ≥ 225,001 Sq. ft or the number of racks that can be installed is ≥ 9001 is classified as a mega data center. |
Retail Colocation | It refers to those customers who have a capacity requirement of 250 kW or less. These services are majorly opted by small and medium enterprises (SMEs). |
Wholesale Colocation | It refers to those customers who have a capacity requirement between 250 kW to 4 MW. These services are majorly opted by medium to large enterprises. |
Hyperscale Colocation | It refers to those customers who have a capacity requirement greater than 4 MW. The hyperscale demand primarily originates from large-scale cloud players, IT companies, BFSI, and OTT players (like Netflix, Hulu, and HBO+). |
Mobile Data Speed | It is the mobile internet speed a user experiences via their smartphones. This speed is primarily dependent on the carrier technology being used in the smartphone. The carrier technologies available in the market are 2G, 3G, 4G, and 5G, where 2G provides the slowest speed while 5G is the fastest. |
Fiber Connectivity Network | It is a network of optical fiber cables deployed across the country, connecting rural and urban regions with high-speed internet connection. It is measured in kilometer (km). |
Data Traffic per Smartphone | It is a measure of average data consumption by a smartphone user in a month. It is measured in gigabyte (GB). |
Broadband Data Speed | It is the internet speed that is supplied over the fixed cable connection. Commonly, copper cable and optic fiber cable are used in both residential and commercial use. Here, optic cable fiber provides faster internet speed than copper cable. |
Submarine Cable | A submarine cable is a fiber optic cable laid down at two or more landing points. Through this cable, communication and internet connectivity between countries across the globe is established. These cables can transmit 100-200 terabits per second (Tbps) from one point to another. |
Carbon Footprint | It is the measure of carbon dioxide generated during the regular operation of a data center. Since, coal, and oil & gas are the primary source of power generation, consumption of this power contributes to carbon emissions. Data center operators are incorporating renewable energy sources to curb the carbon footprint emerging in their facilities. |
Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is not a part of the pricing, and the average selling price (ASP) is kept constant throughout the forecast period for each country.
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms