Data Center Market in Latin America – Industry Analysis and Forecast 2020-2025 Report includes insights into current industry trends, trend forecasts, and growth drivers about the data center market in Latin America.
The digitalization changes the way of making business in the data center market in Latin America. The adoption of smart devices increased internet-based service consumption like cloud-based services.
Strong potential for UPS systems
While the adoption of data center services in sectors like media and entertainment, and BFSI continues to grow, the investment in data centers in Latin America by colocation, telecommunication, and cloud-based service providers keep increasing. In 2019, Google landed its private submarine cable, Curie, in Valparaiso, Chile that is directly connected to the Equinix LA4 data center in Los Angeles, California.
When we look at IT spending, the report indicates that the growth is majorly driven by enterprises shifting from on-premise IT infrastructure to colocation. Due to the increasing usage of internet, rising smartphone adoption, IoT, and big data analytics, it is estimated that the number of application workload instances on the cloud will have been grown by 2.5 times by 2025.
There are many facilities that are being developed based on Tier III standards for design and operations with a minimum of N+1 redundancy on UPS systems in Latin America. Therefore, the Latin America data center market has a strong potential for UPS systems. Tier IV data centers that equipped with at least 2N+1 redundancy in every infrastructure are seen generally in Brazil, Colombia, Chile, Mexico, Uruguay, and Ecuador in Latin America.
Free cooling will reduce energy consumption
Water-based cooling systems are the most used method in several facilities in Brazil. Some of them use the opportunity of the climatic benefit of adopting free cooling and air-based cooling techniques. According to the report, the large data center development in Brazil will adopt systems that support free cooling. Data center in Chile uses mostly chilled water systems with CRAH units, free cooling units with CRAC units, or free cooling chillers.
It is expected that the increasing adoption of free cooling in Chile will reduce cooling energy consumption by up to 30 percent between 2020-2025. In addition to this, the report shows that other Latin American markets, including Peru, Argentina, Uruguay, Mexico, and the Caribbean will be dominated by water-based cooling solutions. In 5 years, it is estimated that most data center development in Brazil will be greenfield.
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