Dublin, Feb. 19, 2024 (GLOBE NEWSWIRE) -- The "Brazil Data Center Market Size & Share Analysis - Growth Trends & Forecasts (2023-2028)" report has been added to ResearchAndMarkets.com's offering.
The Brazil Data Center Market is witnessing a significant uptick, marked by a robust growth from USD 2.14 billion in 2023, set to reach USD 3.21 billion by 2028. This expansion reflects a Compound Annual Growth Rate (CAGR) of 8.45%, from 2023 through 2028. Brazil continues to lead the way as a key data center hub in Latin America, responsible for approximately 50% of the region's investment in this sector.
Latin America's Data Center Giant: Brazil's Strategic Advances in Technology Infrastructure
Recent analysis reveals that São Paulo remains at the epicenter of Brazil's data center expansion, distinguished by its concentrated development of state-of-the-art facilities, hyperscale centers, and cloud regions. This growth is propelled by several key drivers: the proliferation of cloud services, increasing direct investments from both domestic and international players, and supportive government legislation such as the General Data Protection Law (LGPD), which bolsters the development of secure data handling facilities.
Accelerating Demand for Data Centers: Cloud Services and Governmental Laws Catalyze Market Expansion
Sector-Specific Growth Dynamics
- Emergence of cloud-based services
- 5G network deployment contributing to IoT, smart cities, and Industry 4.0
- Legislative framework demanding local data protection
- Escalating need for data sovereignty and compliance
- Growth of fintech and e-commerce necessitating advanced data storage and processing
Hyperscale and colocation operators are turning their focus toward Brazil as cloud service behemoths such as AWS, Microsoft, Oracle, Samsung, and others have established their cloud regions/availability zones. Cloudscene indicates the existence of over 120 data centers across the nation, aiming to bolster hybrid multi-cloud ecosystems, fueled by the demand for low latency and high-speed connectivity, further accentuated by recent shifts in remote working trends.
Challenges and Opportunities
With the push for digital transformation and foreign investment attraction, Brazil is gearing up to deploy the 5G network, which will, in turn, stimulate the development of edge data center facilities. Nonetheless, the market faces challenges, including data security concerns due to cyber threats and natural disasters, as well as the need for sustainable energy solutions to power these resource-intensive services.
Strength in Tier Classification: Tier 3 Data Centers Dominating the Market
Tier 3 data centers, boasting a capacity of 383.3 MW in 2022, are expected to continue their growth trajectory at a CAGR of 7.91%, eventually exceeding 699.9 MW by 2029. Meanwhile, Tier 4 data centers are projected to witness a robust CAGR of 22.12%, reaching a capacity of 470 MW by the same year. Demand for Tier 1 & 2 facilities is predicted to wane, resulting in a decrease in market share.
Industry Consolidation
The Brazil Data Center Market shows a degree of consolidation, with the top five companies accounting for 76.88% of the market share. These key players are champions of innovation, providing cutting-edge data center services that address the growing requirements for enhanced data storage, processing, and analytics capabilities.
A selection of companies mentioned in this report includes:
- Ascenty (Digital Realty Trust, Inc.)
- DC MATRIX INTERNET LTDA
- EdgeUno, INC.
- Equinix, Inc.
- HostDime Global Corp.
- Link Datacenter (GPX)
- Lumen Technologies, Inc.
- NABIAX
- ODATA (Patria Investments Ltd.)
- Quantico Data Center
- Scala Data Centers
- Terremark (Verizon)
For more information about this report visit https://www.researchandmarkets.com/r/hd3bda
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