South America Data Center Colocation Market

Market Introduction

Infrastructure development is a key to South America’s economic growth, which is significantly increasing the per capita incomes of South American countries. Infrastructure development projects have enabled increased productivity, and competitiveness among countries at the global level and domestic levels. Growth of manufacturing facilities, commercial complexes, educational institutions, and government offices, among others with the integration of smart devices and technologies has increased the amount of data generation, and thereby boosted the demands of data center colocation facilities in South America. Governments of countries such as Brazil, Argentina, and Chile are concentrating on attracting FDIs by taking several initiatives such as easing import restrictions, signing international bilateral agreements, and reducing restrictions on foreign investments. Increasing enterprise demands for cost-effective solutions to reduce overall IT cost is the major factor driving the growth of the SAM data center colocation market.

Brazil reported the highest number of COVID-19 cases, followed by Ecuador, Chile, Peru, and Argentina in SAM. To curb the spread of the virus, all economic activities in the region were partially halted. Despite the COVID-19 pandemic, the region recorded growth in the data center business, owing to high pressure on end-user industries to support remote working and fast track their work into digitalization and deploy it on the cloud platform.

Market Overview and Dynamics

The data center colocation market in SAM is expected to grow from US$ 2,136.99 million in 2021 to US$ 4,017.45 million by 2028; it is estimated to grow at a CAGR of 9.4% from 2021 to 2028. Edge computing has emerged as an ideal solution for companies involved in streamlining their data gathering processes and a large number of customers demanding low-latency streaming content. Companies can deliver faster services and free up valuable bandwidth for several other activities that are performed closer to the network’s core by relocating their considerable processing workloads to devices and edge data centers on the outer edges of the network. Moreover, the growth of edge computing significantly depends on the rapid adoption of devices enabled with the internet of things (IoT). The IoT edge devices have developed incredible applications across diverse industries with their capabilities to collect data beyond the reach of conventional networks and extend services with the use of cellular and Wi-Fi connections. However, these functionalities still require a backbone of infrastructure for operating effectively and efficiently. As a result, companies have begun to re-architect their corporate IT infrastructures with respect to colocation and interconnection points of presence. Through the combination of colocation services with regional edge computing data centers, companies can extend their edge network reach quickly and cost-effectively. E-commerce and retail sectors are embracing the edge data center. There is a growing demand for edge data centers in the pharmaceutical industry due to the regulatory requirements and generation of the humungous amount of data. The flexibility of not being dependent upon a centralized infrastructure enables enterprises to adapt quickly to developing markets and scale their data and computing requirements more efficiently. Thus, the increasing development in edge computing creates lucrative growth opportunities for the data center colocation market players.

Key Market Segments

The SAM data center colocation market is segmented into type, enterprise size, industry, and country. Based on type, the market is segmented into retail and wholesale. The retail segment dominated the market in 2020 and wholesale segment is expected to be the fastest growing during the forecast period. Based on enterprise size, the data center colocation market is divided into SMEs and large enterprises. The large enterprises segment dominated the market in 2020 and SMEs segment is expected to be the fastest growing during the forecast period. Further, based on industry, the market is segmented into IT & Telecom, BFSI, healthcare, retail, and others. The IT & Telecom segment dominated the market in 2020 and BFSI segment is expected to be the fastest growing during the forecast period.

Major Sources and Companies Listed

A few major primary and secondary sources referred to for preparing this report on data center colocation market in SAM are company websites, annual reports, financial reports, national government documents, and statistical database, among others. Major companies listed in the report are AT&T Intellectual Property; CyrusOne, Inc.; Digital Realty Trust LP; Equinix Inc.; NTT Communications Corporation; and Verizon Partner Solutions. are among others.

Reasons to buy report

• To understand the SAM data center colocation market landscape and identify market segments that are most likely to guarantee a strong return
• Stay ahead of the race by comprehending the ever-changing competitive landscape for SAM data center colocation market
• Efficiently plan M&A and partnership deals in SAM data center colocation market by identifying market segments with the most promising probable sales
• Helps to take knowledgeable business decisions from perceptive and comprehensive analysis of market performance of various segment form SAM data center colocation market
• Obtain market revenue forecast for market by various segments from 2021-2028 in SAM region.

SAM Data Center Colocation Market Segmentation

SAM Data Center Colocation Market –By Type

• Retail
• Wholesale

SAM Data Center Colocation Market –By Industry

• IT and Telecom
• BFSI
• Healthcare
• Retail
• Others

SAM Data Center Colocation Market –By Enterprise Size

• SMEs
• Large Enterprises

SAM Data Center Colocation Market -By Country

• Brazil
• Argentina
• Rest of SAM

SAM Data Center Colocation Market -Company Profiles

• AT&T Intellectual Property
• CyrusOne, Inc.
• Digital Realty Trust LP
• Equinix Inc.
• NTT Communications Corporation
• Verizon Partner Solutions.

South America Data Center Colocation Market Strategic Insights

South America Data Center Colocation Market Segmentation Analysis

South America Data Center Colocation Market Report Highlights

South America Data Center Colocation Report Scope

South America Data Center Colocation Market Country and Regional Insights