The Latin America modular data center market size was valued at $360 million in 2021 and is expected to reach $1.2 billion by 2027.
Chicago, June 14, 2022 (GLOBE NEWSWIRE) -- According to Arizton latest research report, the Latin America modular data center market is expected to grow at a CAGR of 19% during 2022-2027. The increasing power outage scenarios will also lead to higher adoption of modular redundant power infrastructure. More than 30% of power failures lead to data center downtime. Many data center operators believe that an increase in the redundancy of power infrastructure will help prevent data center downtime. This will lead to the rising adoption of modular power infrastructure and prefabricated infrastructure by data center operators.
Latin America Modular Data Center Market Report Scope
Brazil, Mexico, Colombia, Chile, and Other Latin American Countries
Dow, Eastman Chemical Company, ExxonMobil, Clariant, and Arkema
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Over the past years, the Latin American region has witnessed considerable growth in the adoption of modern technologies and construction of data centers. Colocation and telecommunications service providers are the main contributors to the modular data center market in Latin America. The region is also witnessing an increased presence of cloud service providers. SaaS is the fastest-growing segment in Latin America, with small and medium-sized organizations adopting cloud services. The demand for infrastructure as a service (IaaS) is also increasing day by day, and it is estimated that IaaS will overtake the SaaS market during the forecast period. Cloud service providers such as IBM, Huawei Technologies, and Microsoft are either already present or developing cloud regions in Latin America. AWS also plans to launch the edge data center facilities and locations in Brazil, Colombia, Argentina, Peru, Mexico, and Chile to expand its data center presence and strengthen its cloud infrastructure in Latin America.
Growing internet penetration and adoption of cloud-based services by businesses are driving the market, which will continue to generate high market revenue for modular and prefabricated data center providers in Latin America.
In 2021, Brazil is the leading data center market with more than 50% of investments in the region, followed by Chile, Mexico, and Colombia.
The data center market in Latin America witnessed an increase in the deployment of modular data centers. For Instance, Millicom (TIGO) has been investing in modular facility deployments in the region for the last few years.
In 2021, by infrastructure functional module modular data centers contributed the major market share of about 65% among Latin American countries.
For quick construction and low investment, many medium and small-scale enterprises are investing in modular data center solutions in Latin American countries; this trend is expected to grow in the upcoming years.
Market Size & Forecast by Investment | 2021−2027
Market Size & Forecast by Power Capacity | 2021-2027
Market Dynamics – Leading trends, growth drivers, restraints, and investment opportunities
Market Segmentation – A detailed analysis of infrastructure, functional module, and country
Competitive Landscape – 13 key vendors and 9 other prominent vendors
Latin America Modular Data Center Market – Competitive Landscape
The Latin American modular data center market is witnessing intense competition among global data center operators and infrastructure providers as well as local companies. The market is witnessing investments from cloud services operators and telecom operators.
Huawei Technologies is among the top vendors focused on deploying modular data center facilities in the region. The company holds the majority market share in the Latin American modular data center market.
Data center operators that will offer efficient power and cooling infrastructure will attract more customers and will be the major source of revenue generation for operators.
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