South America Data Center Power Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 530.5 Million |
| Market Size (2029) | USD 845.80 Million |
| CAGR (2024 - 2029) | 10.90 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
South America Data Center Power Market Analysis
The South America Data Center Power Market size is estimated at USD 530.5 million in 2024, and is expected to reach USD 845.80 million by 2029, growing at a CAGR of 10.90% during the forecast period (2024-2029).
A country such as Brazil has a strong future for coupling large-scale solar and wind power as hybrid power plants, supporting sustainable data centers in the region. In 2021, the Brazilian energy regulator, ANEEL, approved a new regulation for the operation of hybrid power plants. This, in turn, is expected to provide ample opportunity for Brazil's data center power market in the coming years. The market is also witnessing significant growth in procuring lithium-ion UPS and nickel-zinc systems. Prussian sodium providers also witness strong interest in adopting these battery technologies in data centers.
The upcoming IT load capacity of the South American data center construction market is expected to reach 1,800 MW by 2029.
The region's construction of raised floor area is expected to increase 7.8 million sq. ft by 2029.
The region's total number of racks to be installed is expected to reach 392K units by 2029. Brazil is expected to house the maximum number of racks by 2029.
Close to 60 submarine cable systems are connecting South America, and many are under construction. One submarine cable, Carnival Submarine Network-1 (CSN-1), is estimated to start service in 2025. It stretches over 4500 kilometers and has a landing point in Barranquilla, Colombia.
South America Data Center Power Market Trends
The IT & Telecom Segment is Expected to Hold Significant Share
- Over the past decade, South America has made considerable strides in developing infrastructures, although the status of its digital ecosystem varies. Although general penetration of fixed broadband is low, significant efforts are now being made in the different countries across the region to deploy fiber optic networks.
- The Chilean government has substantially invested in fiber-optic networks, with connections reaching more than 90% of the population. As a result, most Chilean families now have access to high-speed internet services, enabling them to benefit from the expanding range of available digital services.
- Regarding 5G connectivity, all Brazilian municipalities with at least 200,000 residents will have a 5G network by July 31, 2026, with at least one antenna. Brazil's 5G spectrum auction held in October 2021 raised about USD 8.5 billion. By 2035, introducing 5G in Brazil may have a USD 1.2 trillion economic impact and a USD 3 trillion productivity boost. With increasing network traffic, the data center construction is increasing, leading to demand for major power backup solutions.
- While most traditional data centers use alternating current (AC) power distribution systems, telecom data centers run mainly on direct current (DC) power, such as UPS and PDU. Telecom data centers get power from the utility in the AC and convert it to DC using rectifiers, which also charge their batteries.
- South American data centers' average power usage efficiency is 1.48 PUE, indicating an efficient efficiency level. This requires major power sources such as backup generators and UPS to maintain the electricity backup.
Brazil to Hold Significant Growth
- Brazil's digital economy demonstrates the potential for continued growth over the medium and long term. The Brazilian government plays a significant role in developing local data center infrastructure. According to the government, the country's General Data Protection Act (LGPD) was implemented in August 2020. It is expected to force many enterprises to migrate their cloud access to private networks and update their encryption services to extend user data protection.
- Around 10-15% of data is created and processed outside centralized data centers or the cloud. However, the number is expected to surpass 60-70% by 2025, a global trend also expected in Brazil. Such factors will lead to significant power backup demand for generators, PDUs, and UPS.
- Microsoft, Amazon Web Services, and Google are major cloud service providers in Brazil. These cloud service providers will collocate their workloads with existing colocation operators and collaborate with the new market entrants to provide cloud-based services.
- In Brazil, Sao Paulo is one of the most connected cities, with a high availability of digital business and financial centers, making the city a favorable location for facility development. The region is also witnessing a boost in investments in the market due to the Brazilian data localization law, Lei Geral de Protecao de Dados Pessoais (LGPD), which passed some regulations for storing the data generated within the country.
- In March 2021, Microsoft announced new availability zones in São Paulo as part of its “More Brazil” plan. In addition, the company planned to expand its zone coverage by the end of 2021.
- Regarding data center construction, in December 2021, Scala Data Centers announced its plan to build two hyperscale data center facilities in Brazil. The SP4 and SP5 facilities will have 18 MW and 9 MW power capacity and are expected to work by April 2022 and September 2022, respectively. Overall, the above factor relates favorably to the demand for power solutions.
South America Data Center Power Industry Overview
The South American data center power market is slightly consolidated among the players and has gained a competitive edge in recent years. A few major players are ABB Ltd, Generac Power Systems Inc., Cummins Inc., etc. These major players, with a prominent market share, focus on expanding their regional customer base. These companies leverage strategic collaborative initiatives to increase their market share and profitability.
In June 2023, Legrand introduced the industry’s next generation of intelligent rack power distribution units (PDUs). The Server Technology PRO4X and Raritan PX4 rack PDUs are poised to redefine power management in data centers with exceptional visibility, cutting-edge hardware, and enhanced security.
South America Data Center Power Market Leaders
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ABB Ltd
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Cummins Inc.
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Generac Power Systems, Inc.
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Rittal GmbH & Co. KG
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Legrand Group
*Disclaimer: Major Players sorted in no particular order
South America Data Center Power Market News
- June 2023: CyberPower updated Three Phase Intelligent LCD PDUs Firmware. It supports a new environmental sensor, SNEV001, and enables users to turn on/off cipher suites for the SSL Server.
- June 2023: Vertiv announced its alliance with Modular Data Centers in developing and manufacturing modular data centers headquartered in Brazil. In this partnership, Vertiv contributes thermal and power management solutions for critical infrastructure, while Modular contributes expertise in designing, fabricating, and integrating modular prefabricated data centers (PFM).
South America Data Center Power Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumption & Market Definition
1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. Market Dynamics
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rising Adoption of Mega Data Centers and Cloud Computing
4.2.2 Increasing Demand to Reduce Operational Costs
4.3 Market Restraints
4.3.1 High Cost of Installation and Maintenance
4.4 Value Chain/Supply Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Assessment of the COVID-19 Impact
5. MARKET SEGMENTATION
5.1 Power Infrastructure
5.1.1 Electrical Solution
5.1.1.1 UPS Systems
5.1.1.2 Generators
5.1.1.3 Power Distribution Solutions
5.1.1.3.1 PDU
5.1.1.3.2 Switchgear
5.1.1.3.3 Critical Power Distribution
5.1.1.3.4 Transfer Switches
5.1.1.3.5 Remote Power Panels
5.1.1.3.6 Other Solutions
5.1.2 Service
5.2 End User
5.2.1 IT & Telecommunication
5.2.2 BFSI
5.2.3 Government
5.2.4 Media & Entertainment
5.2.5 Other End Users
5.3 Country
5.3.1 Brazil
5.3.2 Chile
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 ABB Ltd
6.1.2 Caterpillar Inc.
6.1.3 Cummins Inc.
6.1.4 Eaton Corporation
6.1.5 Legrand Group
6.1.6 Rolls-Royce PLC
6.1.7 Vertiv Group Corp.
6.1.8 Schneider Electric SE
6.1.9 Rittal GmbH & Co. KG
6.1.10 Fujitsu Limited
6.1.11 Cisco Systems Inc.
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
South America Data Center Power Industry Segmentation
Data center power refers to the power infrastructure, including electrical components and electrical distribution systems, which provide the power necessary to operate and support the devices and servers within the data center. It includes various components and technologies designed to ensure a reliable, uninterruptible power supply for data center IT equipment, including uninterruptible power supplies (UPS), power distribution units (PDU), backup generators, and other power management solutions tailored to the specific needs of data centers. Data center operators achieve redundancy through duplicated components to maintain uninterrupted operations in the event of failure of some components and to maintain uptime during maintenance.
The South American data center power market is segmented by power infrastructure (electrical solution (UPS systems, generators, power distribution solutions (PDU, switchgear, critical power distribution, transfer switches, remote power panels, and other solutions)), and service), end user (IT & telecommunication, BFSI, government, media & entertainment, and other end users), and country. The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| Power Infrastructure | ||||||||||||
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| Service |
| End User | |
| IT & Telecommunication | |
| BFSI | |
| Government | |
| Media & Entertainment | |
| Other End Users |
| Country | |
| Brazil | |
| Chile |
South America Data Center Power Market Research FAQs
How big is the South America Data Center Power Market?
The South America Data Center Power Market size is expected to reach USD 530.5 million in 2024 and grow at a CAGR of 10.90% to reach USD 845.80 million by 2029.
What is the current South America Data Center Power Market size?
In 2024, the South America Data Center Power Market size is expected to reach USD 530.5 million.
Who are the key players in South America Data Center Power Market?
ABB Ltd, Cummins Inc., Generac Power Systems, Inc., Rittal GmbH & Co. KG and Legrand Group are the major companies operating in the South America Data Center Power Market.
What years does this South America Data Center Power Market cover, and what was the market size in 2023?
In 2023, the South America Data Center Power Market size was estimated at USD 472.68 million. The report covers the South America Data Center Power Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the South America Data Center Power Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
South America Data Center Power Industry Report
Statistics for the 2024 South America Data Center Power market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South America Data Center Power analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
