Market Size of South America Data Center Power Industry
| 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 |
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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 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 Size Summary
The South America data center power market is poised for significant growth, driven by advancements in infrastructure and increasing demand for digital services. Brazil, in particular, is at the forefront of this expansion, with initiatives like the approval of hybrid power plants by the Brazilian energy regulator, ANEEL, and substantial investments in fiber-optic networks. These developments are expected to support the region's data center power market by enabling sustainable energy solutions and enhancing connectivity. The market is also witnessing a shift towards advanced power backup solutions, such as lithium-ion UPS and nickel-zinc systems, to meet the rising IT load capacity and power usage efficiency demands. The construction of data centers is on the rise, with Brazil anticipated to lead in the number of racks installed, further bolstering the market's growth trajectory.
The digital economy in Brazil is experiencing robust growth, supported by government initiatives and the presence of major cloud service providers like Microsoft, Amazon Web Services, and Google. These companies are expanding their operations and collaborating with local players to enhance cloud-based services, driven by regulations such as the General Data Protection Act (LGPD) and data localization laws. The demand for power solutions is expected to increase as more data is processed outside centralized data centers, aligning with global trends. The market is slightly consolidated, with key players like ABB Ltd, Generac Power Systems Inc., and Cummins Inc. focusing on strategic collaborations and innovative power management solutions to strengthen their market position. Recent advancements, such as Legrand's intelligent rack power distribution units and Vertiv's partnership with Modular Data Centers, highlight the ongoing efforts to enhance power management and infrastructure in the region.
South America Data Center Power Market Size - Table of Contents
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1. Market Dynamics
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Rising Adoption of Mega Data Centers and Cloud Computing
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1.2.2 Increasing Demand to Reduce Operational Costs
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1.3 Market Restraints
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1.3.1 High Cost of Installation and Maintenance
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1.4 Value Chain/Supply Chain Analysis
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1.5 Industry Attractiveness - Porter's Five Forces Analysis
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1.5.1 Threat of New Entrants
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1.5.2 Bargaining Power of Buyers/Consumers
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1.5.3 Bargaining Power of Suppliers
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1.5.4 Threat of Substitute Products
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1.5.5 Intensity of Competitive Rivalry
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1.6 Assessment of the COVID-19 Impact
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2. MARKET SEGMENTATION
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2.1 Power Infrastructure
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2.1.1 Electrical Solution
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2.1.1.1 UPS Systems
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2.1.1.2 Generators
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2.1.1.3 Power Distribution Solutions
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2.1.1.3.1 PDU
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2.1.1.3.2 Switchgear
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2.1.1.3.3 Critical Power Distribution
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2.1.1.3.4 Transfer Switches
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2.1.1.3.5 Remote Power Panels
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2.1.1.3.6 Other Solutions
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2.1.2 Service
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2.2 End User
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2.2.1 IT & Telecommunication
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2.2.2 BFSI
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2.2.3 Government
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2.2.4 Media & Entertainment
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2.2.5 Other End Users
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2.3 Country
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2.3.1 Brazil
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2.3.2 Chile
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South America Data Center Power Market Size 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.
