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South America Data Center Rack Market Market Size (2024 - 2029)

The South America Data Center Rack Market is anticipated to experience significant growth, with its market size expanding over the forecast period. The region is witnessing a substantial increase in IT load capacity and raised floor space due to ongoing data center constructions. Additionally, a considerable number of racks are planned for installation, with Brazil expected to accommodate the largest share. The development of submarine cable projects further supports the market's expansion, enhancing connectivity and infrastructure capabilities in the region.

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Market Size of South America Data Center Rack Industry

South America Data Center Rack Market Summary
Study Period 2024 - 2030
Base Year For Estimation 2023
Forecast Data Period 2024 - 2030
CAGR (2024 - 2030) 11.60 %
Market Concentration High

Major Players

South America Data Center Rack Market Major Players

*Disclaimer: Major Players sorted in no particular order

South America Data Center Rack Market Analysis

The South America Data Center Rack Market is expected to register a CAGR of 11.60% during the forecast period.

The South America Data Center Rack Market value of over USD 2 million in previous year and it is further projected to grow and register a CAGR of 11.16%.

Under Construction IT Load Capacity: The upcoming IT load capacity of the region's data center construction market is expected to reach 1,806.4 MW by 2029.

Under Construction Raised Floor Space: The region's construction of raised floor area is expected to increase 7.8 million sq. ft by 2029.

Planned Racks: The region's total number of racks to be installed is expected to 392,072 units by 2029. Brazil is expected to house the maximum number of racks by 2029.

Planned Submarine Cables: There are Currently, four submarine cable projects are under construction in the region. One such submarine cable, estimated to start service in 2025, is Caribbean Express (CX), stretching over 3472 kilometers with landing points from Cartagena, Colombia, for planned submarine cables.

South America Data Center Rack Industry Segmentation

A data center rack is a physical enclosure made up of usually steel housing electronic framework. It is designed to house servers, networking and communication devices, cables, and other data center computing peripherals.

The South American data center rack market is segmented by rack size (quarter rack, half rack, and full rack), end-user industry (BFSI, IT and telecom, government, media and entertainment), and country (Brazil, Chile, Rest of South America). The market sizes and forecasts are provided in terms of volume (units) for all the above segments.

By Rack Size
Quarter Rack
Half Rack
Full Rack
By End User
IT & Telecommunication
BFSI
Government
Media & Entertainment
Other End Users
By Country
Brazil
Chile
Rest of South America
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South America Data Center Rack Market Size Summary

The South America Data Center Rack Market is experiencing robust growth, driven by increasing demand from sectors such as cloud services, telecommunications, and banking. Brazil and Chile are at the forefront, with Brazil benefiting from government incentives and significant investments from colocation providers and telecom operators. The region is witnessing a digital transformation, particularly in fintech and digital banking, with a surge in active users surpassing traditional banking methods. Chile's competitive energy prices and strong telecommunications infrastructure make it an attractive location for data center investments, with major projects underway to enhance its fiber backbone. Argentina is also emerging as a key player, with Buenos Aires being the primary investment hub, supported by the country's renewable energy initiatives.

The market is fairly consolidated, with major players like Rittal GMBH & Co.KG, Schneider Electric SE, and Dell Inc. leading the charge. Recent developments include Ascenty's expansion with new facilities across several countries, reinforcing its market leadership. Scala Data Centers has also made significant strides with the launch of the largest vertical data center in Latin America, emphasizing environmentally friendly practices. The region's data center infrastructure is set to expand significantly, with numerous racks and raised floor spaces planned, catering to the growing demand for data storage and processing capabilities.

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South America Data Center Rack Market Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increasing Deployment of Data Center Facilities

      2. 1.2.2 Growing Cloud Computing Adoption Leading to Investment in Hyperscale Data Centers

      3. 1.2.3 BFSI Sector Expected to Hold a Significant Share

    3. 1.3 Market Restraints

      1. 1.3.1 Increasing Utilization of Blade Servers

    4. 1.4 Value Chain/Supply Chain

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Bargaining Power of Buyers/Consumers

      2. 1.5.2 Bargaining Power of Suppliers

      3. 1.5.3 Threat of New Entrants

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Rack Size

      1. 2.1.1 Quarter Rack

      2. 2.1.2 Half Rack

      3. 2.1.3 Full Rack

    2. 2.2 By End User

      1. 2.2.1 IT & Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media & Entertainment

      5. 2.2.5 Other End Users

    3. 2.3 By Country

      1. 2.3.1 Brazil

      2. 2.3.2 Chile

      3. 2.3.3 Rest of South America

South America Data Center Rack Market Market Size FAQs

The South America Data Center Rack Market is projected to register a CAGR of 11.60% during the forecast period (2024-2030)

Rittal GMBH & Co.KG, Schneider Electric SE, Legrand SA, Dell Inc. and Hewlett Packard Enterprise are the major companies operating in the South America Data Center Rack Market.

South America Data Center Rack Market Report Snapshots

South America Data Center Rack Market Size and Share Analysis - Growth Trends and Forecasts (2024 - 2030)