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Latin America Data Center Colocation Market Worth $1.51 Billion by 2028, More than 958.8 Thousand Sq. Ft Spaces to be Added in the Next 6 Years - Arizton

In the Latin America data center colocation market, power capacity is expected to reach 195.3 MW by 2028.
Published 24 August 2023

According to Arizton’s latest research report, the Latin America data center colocation market will grow at a CAGR of 8.10% from 2022 to 2028. 

The study considers the present scenario of the Latin America data center colocation market and its market dynamics for 2023−2028. It covers a detailed overview of several market growth enablers, restraints, and trends. The report offers both the demand and supply aspects of the industry. It profiles and examines leading and prominent companies operating in the industry. 

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The Latin American data center colocation market has witnessed exceptional growth, with local and global operators establishing a stronger presence. Countries such as Brazil, Mexico, Chile, and Colombia are witnessing a surge in activity. In 2022, the additional emerging markets in the region included Argentina and Peru. Several factors contribute to the growth of the colocation market in Latin America, including the widespread adoption of digitalization in various countries, the establishment of data centers by major hyperscale cloud service providers, the expansion of connectivity infrastructure, and other driving forces. 

Brazil is the leading data center market in Latin America, with more than 45% of investments in the region due to the exceptionally high Internet penetration and the adoption of cloud-based services by businesses in the country. The major cloud service providers in the country include AWS, Microsoft, Oracle, IBM, Tencent Cloud, Google, and Huawei Technologies. The country also witnesses investments in the establishment of new cloud regions. For instance, Google plans to launch a new cloud region and engineering center in Sao Paulo 2023. Brazil has 15 submarine cables that connect it to other Latin American countries, Portugal, Cameroon, Angola, and the US. The country witnesses upcoming submarine cables, such as the Firmina submarine cable deployed by Google, which connects Brazil with Argentina, Uruguay, and the US. The Brazilian data center market has witnessed the entry of foreign companies into the data center market with the acquisition of local colocation service providers. For instance, in December 2022, Aligned, a US data center firm, announced to acquire ODATA, a Brazilian colocation data center service firm. ODATA is involved in constructing the RJ01 Data Center (Phase 1) in Rio de Janeiro, which is expected to be operational by H1 2023. 

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Power Capacity: Market Size & Forecast 

Latin America is a significantly growing market in terms of sustainable power usage by data center operators and government organizations. Governments across several countries are taking initiatives to produce electricity from renewable energy sources. Countries such as Brazil, Chile, Colombia, Argentina, Peru, and Mexico are among the major locations adopting renewable energy sources. The following are some of the recent developments in terms of power capacity in the region: 

  • In 2022, Brazil was the largest contributor in terms of power capacity, adding about 65 MW of IT load, followed by Mexico, Chile, Colombia, and other Latin American countries with a cumulative power of over 60 MW. 
  • Investments in renewable energy are being made in some countries, including Brazil, Chile, Colombia, Mexico, Argentina, and Peru, to increase power stability. The governments in these countries have implemented initiatives to produce electricity from renewable energy sources to upgrade power grids.  


Regional Insights  

Chile has around 38 operational colocation data centers. Most colocation data centers in Chile are being developed as Tier III facilities. Ascenty, Entel, Gtd Group, Nabiax, Lumen Technologies, América Móvil, SONDA, TIVIT, EdgeConneX, and Netglobalis are some colocation providers operating in Chile. The Chilean data center market is also witnessing the entry of several new entrants, such as ODATA and Scala Data Centers, which are planning to build data centers in the country. 

The Chilean colocation market will continue to grow owing to the government’s digitalization plans, strong infrastructure, and a stable economy. Also, the rise in the adoption of renewable energy and the country’s strategic location will drive the market. Cloud services operators such as Microsoft, Amazon Web Services (AWS), Google, and Oracle have existing/planned cloud regions in Chile, which is expected to significantly boost the wholesale colocation capacity in the country. Over the next few years, the maximum data center demand in Chile is expected to come from the cloud segment, followed by IT and Telecom, government, BFSI, healthcare, and education sectors. 

Prominent Data Center Investors 

  • Ascenty 
  • AVA Telecom 
  • Equinix 
  • Edgeconnex 
  • GlobeNet Telecom 
  • OneX 
  • Scala Data Centers 
  • Claro 
  • Nabiax 
  • Gtd Peru 
  • Lumen Technologies 
  • ODATA 
  • Air Link Communications 
  • Belize Network Information Centre 
  • Blue NAP Americas 
  • Brac Informatics Centre (BIC) 
  • Digicel 
  • Epic.io 
  • Telecom Italia Sparkle 
  • KIO Networks 
  • Oxygen 
  • Millicom 
  • InterNexa 
  • Lumen Technologies 
  • Entel 
  • SONDA 
  • HostDime 
  • CloudHQ 
  • IPXON Networks 


Market Segmentation 

  • Colocation Service: Retail Colocation and Wholesale Colocation 
  • Infrastructure: Electrical Infrastructure, Mechanical Infrastructure, and General Construction 
  • Electrical Infrastructure: UPS Systems, Generators, Transfer Switches & Switchgear, Power Distribution Units, and Other Electrical Infrastructure 
  • Mechanical Infrastructure: Cooling Systems, Racks, and Other Mechanical Infrastructure 
  • Cooling Systems: CRAC & CRAH Units, Chiller Units, Cooling Towers, Condensers & Dry Coolers, Economizers & Evaporative Coolers, and Other Cooling Units 
  • General Construction: Core & Shell Development, Installation & Commissioning Services, Engineering & Building Design, Fire Detection & Suppression, Physical Security, and DCIM/BMS Solutions 
  • Tier Standard: Tier I & II, Tier III, and Tier IV 
  • Geography: Latin America (Brazil, Mexico, Chile, Colombia, and Rest of Latin America) 


Key Questions Answered in the Report 

  • How big is the Latin America data center colocation market? 
  • What is the growth rate of the Latin America data center colocation market? 
  • What is the estimated market size in terms of area in the Latin America data center colocation market by 2028? 
  • What are the key trends in the Latin America data center colocation market? 
  • How many MW of power capacity is expected to reach the Latin America data center colocation market by 2028? 


Check Out Some of the Top Selling Research Reports: 

Latin America Data Center Market Landscape 2023-2028 

https://www.arizton.com/market-reports/latin-america-data-center-market-analysis 

Latin America Data Center Market - Industry Outlook & Forecast 2023-2028 

https://www.arizton.com/market-reports/latin-america-data-center-market-report-2025 

Latin America Data Center Construction Market - Industry Outlook & Forecast 2023-2028 

https://www.arizton.com/market-reports/latin-america-data-center-construction-market-size-and-analysis-2024 

Latin America Data Center Server Market - Industry Analysis and Forecast 2022-2027 

https://www.arizton.com/market-reports/latin-america-data-center-server-market 

Check the detailed table of contents of the report @ https://www.arizton.com/market-reports/latin-america-data-center-colocation-market?details=tableOfContents 


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