South & Central America Data Center Cooling Market Report (2021-2031) by Scope, Segmentation, Dynamics, and Competitive Analysis

The South & Central America data center cooling market size is expected to reach US$ 1,089.70 million by 2031 from US$ 417.88 million in 2023. The market is estimated to record a CAGR of 12.7% from 2023 to 2031.

Executive Summary and South & Central America Data Center Cooling Market Analysis:

Elea Digital Data Centers, a leading provider of digital infrastructure and colocation services in Brazil's Tier 1 and Tier 2 markets, announced a strategic expansion plan to meet the rising demand for data centers in July 2024. The company's plan includes a substantial investment of US$ 1 billion to expand its footprint by 120MW in the Greater São Paulo area, reflecting the significant growth and demand for digital infrastructure in the region. The expansion aligns with the broader trend of increasing investments in data center infrastructure in South America, driven by the region's growing digital economy and the need for advanced data processing and storage capabilities. As the region continues to witness rapid digital transformation and technological advancements, investments in data center infrastructure, including advanced cooling solutions, are crucial to support the evolving digital landscape in South America. Elea Digital's initiative to expand its footprint and invest in data center infrastructure aligns with the broader trend of growing investments in digital infrastructure in the region, highlighting the significance of efficient and sustainable data center solutions in supporting the digital economy of South America.

South & Central America Data Center Cooling Market Strategic Insights

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South & Central America Data Center Cooling Market Segmentation Analysis

Key segments that contributed to the derivation of the South & Central America data center cooling market analysis are component, cooling type, data center type, and industry vertical.

• Based on component, the South & Central America data center cooling market is segmented into air conditioning system, chillers, air handling units, cooling towers, heat exchangers, humidifiers, and others. The air conditioning system held the largest share of the market in 2023.
• Based on cooling type, the South & Central America data center cooling market is segmented into room based cooling, row based cooling, and rack based cooling. The room based cooling held the largest share of the market in 2023.
• Based on data center type, the South & Central America data center cooling market is segmented into hyperscale data center, colocation data center, wholesale data center, and enterprise data center. The hyperscale data center held the largest share of the market in 2023.
• Based on industry vertical, the South & Central America data center cooling market is segmented into IT and telecom, BFSI, healthcare, manufacturing, government and defense, media and entertainment, retail, energy, and others. The IT and telecom held the largest share of the market in 2023.

South & Central America Data Center Cooling Market Outlook

Data center cooling robots can move within the facility, monitoring temperatures and humidity levels in particular server cabinets. As newer data center cooling technologies often entail substantial investments for facility owners, smart technology has emerged as a popular alternative. Datacenter smart assistants, along with AI and machine learning technologies, play a pivotal role in efficiently monitoring facilities and effecting real-time adjustments to maintain optimal temperatures and humidity levels. For example, Google, which employs smart temperature controls to decrease heat output and cooling usage, leveraged its DeepMind AI product to achieve a remarkable 40% reduction in cooling energy consumption in 18 months.

The integration of data center cooling robots further enhances monitoring capabilities within the facility, enabling the continuous assessment of temperatures and humidity levels in specific server cabinets. Addressing the challenge of manually monitoring temperatures in cabinets, companies such as OneNeck IT Solutions have developed a robot sensor probe that seamlessly fits into standard cabinets. This innovative solution involves a robot that moves along a belt-driven rail inside the cabinet, collecting temperature data for each rack and transmitting it via Bluetooth to connected devices. Consequently, data center professionals can create comprehensive heat maps of the cabinet, facilitating informed decision-making and proactive maintenance strategies. Further, in response to the growing need for enhanced data center automation and robotics, Microsoft announced its plans to establish a dedicated team focused on advancing these technologies in October 2023. This strategic initiative reflects a proactive approach to addressing the evolving demands for data center cooling management. It underscores Microsoft's commitment to leveraging cutting-edge solutions for optimizing operational efficiency and performance. Thus, the growing incorporation of data center cooling robots is expected to create numerous opportunities for the market growth during the forecast period.

South & Central America Data Center Cooling Market Country Insights

Based on country, the South & Central America data center cooling market comprises Brazil, Argentina, and the Rest of South & Central America. Brazil held the largest share in 2023.

Peru, Colombia and Chile are among the major countries in the Rest of South America data center cooling market. Governments of these countries are focused on launching data center construction initiatives, which are anticipated to boost the data center cooling market in this region. In December 2023, Claro Peru announced the launch of a new US$ 50 million data center in Lima, Peru. In November 2023, ODATA announced the launch of DC ST02, its second hyperscale data center located in San Bernardo, Chile. The new data center represents an important milestone in the company's strategic regional development, expanding its total IT capacity in Chile to approximately 80 MW.

South & Central America Data Center Cooling Market Report Highlights

South & Central America Data Center Cooling Market Company Profiles

Some of the key players operating in the market Asetek, Inc; Mitsubishi Corp; Stulz SpA; Vertiv Group Corp.; Aspen Systems, LLC.; Daikin Industries Ltd; Delta Electronics Inc; Danfoss AS; Motivair Corporation; Madison Industries; Fujitsu Ltd; Rittal GmbH & Co KG; Schneider Electric SE; Trane Technologies Plc; Black Box Corporation; Carrier Global Corp; Alfa Laval AB; Hewlett Packard Enterprise Development LP; Boyd Corp; and Evapco Inc, among others. These players are adopting various strategies such as expansion, product innovation, and mergers and acquisitions to provide innovative products to their consumers and increase their market share.

South & Central America Data Center Cooling Market Research Methodology :

The following methodology has been followed for the collection and analysis of data presented in this report:

• Secondary Research

The research process begins with comprehensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data for each market. Commonly referenced secondary research sources include, but are not limited to:

• Company websites, annual reports, financial statements, broker analyses, and investor presentations.
• Industry trade journals and other relevant publications.
• Government documents, statistical databases, and market reports.
• News articles, press releases, and webcasts specific to companies operating in the market.

Note: All financial data included in the Company Profiles section has been standardized to USD. For companies reporting in other currencies, figures have been converted to USD using the relevant exchange rates for the corresponding year.

• Primary Research

The Insight Partners conducts a significant number of primary interviews each year with industry stakeholders and experts to validate its data analysis and gain valuable insights. These research interviews are designed to:

• Validate and refine findings from secondary research.
• Enhance the expertise and market understanding of the analysis team.
• Gain insights into market size, trends, growth patterns, competitive dynamics, and future prospects.

Primary research is conducted via email interactions and telephone interviews, encompassing various markets, categories, segments, and sub-segments across different regions. Participants typically include:

• Industry stakeholders: Vice Presidents, business development managers, market intelligence managers, and national sales managers
• External experts: Valuation specialists, research analysts, and key opinion leaders with industry-specific expertise

South & Central America Data Center Cooling Market Country and Regional Insights