Brazil Data Center Market CAGR of Brazil Data Center Market by Tier Type
DUBLIN, Feb. 19, 2024 (GLOBE NEWSWIRE) — The “Brazil Data Center Market Size and Share Analysis – Growth Trends and Forecasts (2023-2028)” report has been added. ResearchAndMarkets.com Recruitment.
The Brazilian data center market has witnessed a significant rise characterized by solid growth from USD 2.14 billion in 2023 and is expected to reach USD 3.21 billion by 2028. This expansion reflects a compound annual growth rate (CAGR) of 8.45% from 2023 to 2023. 2028. Brazil continues to lead the way as Latin America’s main data center hub, accounting for approximately 50% of regional investment in the sector.
Latin American data center giants: strategic advances in Brazil’s technology infrastructure
A recent analysis reveals that São Paulo remains the center of data center expansion in Brazil, characterized by state-of-the-art facilities, hyperscale centers and intensive development of cloud space. This growth is driven by several key factors, including the proliferation of cloud services, increased direct investment from domestic and foreign companies, and government support laws such as the General Data Protection Act (LGPD) that strengthen the development of secure data processing facilities. Propelled by a propulsive force.
Data center demand accelerates: Cloud services and government laws drive market expansion
Growth dynamics by sector
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The advent of cloud-based services
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Introduction of 5G network contributing to IoT, smart cities, and Industry 4.0
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Legal framework requiring local data protection
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Data sovereignty and compliance needs grow
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Growth in fintech and e-commerce requires advanced data storage and processing
Hyperscale and colocation operators are focusing on Brazil as cloud services giants such as AWS, Microsoft, Oracle, and Samsung establish cloud regions/availability zones. Cloudscene indicates it has more than 120 data centers in the country. This is aimed at strengthening the hybrid multicloud ecosystem, driven by the demand for low latency and high speed connectivity, further accentuated by recent changes in remote work trends.
Challenges and opportunities
Driven by digital transformation and a drive to attract foreign investment, Brazil is preparing to deploy 5G networks, which will accelerate the development of edge data center facilities. Nevertheless, the market faces challenges such as data security concerns due to cyber threats and natural disasters, and the need for sustainable energy solutions to power these resource-intensive services.
The Strength of Tier Classification: Tier 3 Data Centers Dominate the Market
With a capacity of 383.3 MW in 2022, Tier 3 data centers are expected to continue their growth trajectory at a CAGR of 7.91%, ultimately exceeding 699.9 MW by 2029. Meanwhile, Tier 4 data centers are projected to achieve a robust CAGR of 22.12. %, by the same year the capacity had reached 470MW. Demand for Tier 1 and Tier 2 facilities is expected to decline, resulting in a decline in market share.
industry consolidation
The Brazilian data center market has seen some degree of consolidation, with the top five companies accounting for 76.88% of the market share. These leading companies are drivers of innovation, providing state-of-the-art data center services that address the growing requirements for enhanced data storage, processing, and analytics capabilities.
Some of the companies mentioned in this report include:
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Ascenti (Digital Realty Trust Co., Ltd.)
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DC Matrix Internet LTDA
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Edge Uno Co., Ltd.
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Equinix Inc.
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Host Dime Global Co., Ltd.
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Link Data Center (GPX)
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Lumen Technologies Co., Ltd.
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naviax
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ODATA (Patria Investments Co., Ltd.)
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Quantico Data Center
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scala data center
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Telemark (Verizon)
For more information on this report, please visit https://www.researchandmarkets.com/r/hd3bda.
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