Latin America Green Data Center Market - Industry Outlook & Forecast 2023-2028

KEY TRENDS

Innovations Data Center Cooling and Power Technologies Are Driving the Market for Green Development

• In Latin America, innovations in data center power technology include the adoption of lithium-ion and smart grid UPS systems and DRUPS systems.
• Fuel cell-based power backup is also expected to enter the Latin American market in the long term, driving down investments in inefficient diesel generators and the market for efficiencies.
• Hydrotreated Vegetable Oil (HVO) Fuel is among the emerging trends concept in the data center market. However, data center operators in Latin America didn’t adopt this technology. Still, there is the development from some of the oil companies involved in the development of the HVO fuel stations, wherein it is witnessed that during the forecast period, at least some operators will introduce HVO in their data center facilities.
• A tropical test bed is currently in the testing phase in Singapore to make data centers more efficient in a tropical climate. If successful, this can also positively impact the Latin American market and bring down the PUE of facilities further.
• Free cooling is also being adopted by data center operators in facilities in countries like Brazil, Chile, Argentina, and the Caribbean, at least partially. For instance, Equinix uses free cooling in its SP3 data center in São Paulo.

Government Push Toward Sustainability

• Various Latin American governments, including those of Chile, Brazil, and Uruguay, are actively working toward increasing the adoption of renewable energy in the country.
• The Development Bank of Latin America has approved a loan of USD 300 million to Uruguay to strengthen its electricity grid and modernize it, driven by the government.

Deployment of Modular Data Centers and Sustainable Materials Gathering Steam

• In Latin America, many operators have limited funds for data center development, making it an attractive proposition for deploying modular data centers. Some of the companies in Latin America are involved in investing in the development of Modular facilities. The cost of operating a modular data center is around 30% less than that of a traditional data center facility.
• The environmental impact of modular data center deployment is also lower since it entails lower or no usage of concrete and can be constructed in a phased manner, eliminating the need for additional labor.
• Plant-based and other sustainable materials such as wood, hemp, and Mycelium, which can revolutionize the construction process for data centers, are also being adopted by data center operators.

SEGMENTATION ANALYSIS

Segmentation by Infrastructure

• Electrical Infrastructure
• Mechanical Infrastructure
• General Construction

Segmentation by Electrical Infrastructure

• UPS Systems
• Generators
• Other Electrical Infrastructures

Segmentation by Mechanical Infrastructure

• Cooling Systems
• Racks
• Other mechanical Infrastructure

Segmentation by Cooling Systems

• CRAC & CRAH Units
• Chiller Units
• Cooling Towers, Condensers & Dry Coolers
• Economizers & Evaporative Coolers
• Other Cooling Units

Segmentation By General Construction

• Core and Shell Development
• MEP & Architectural Design Services
• Physical Security & Fire Safety Systems
• DCIM/BMS Solution

GEOGRAPHICAL ANALYSIS

• Among Latin American countries, Brazil, Mexico, Chile, Columbia, Argentina, Paraguay, and Uruguay have actively adopted renewable energy for most of their energy requirements.
• The Mexican government plans to produce 35% of its electricity from renewable sources by 2024. This objective is part of the efforts to reduce the country's reliance on fossil fuels and to enhance the stability of the electric grid by minimizing the occurrence of power interruptions.

Segmentation by Geography

• Brazil
• Chile
• Mexico
• Columbia
• Other Latin American Countries

VENDOR LANDSCAPE

• Hyperscale operators such as Google and Microsoft are actively driving renewable energy adoption in Latin America. For instance, in January 2022, Microsoft announced plans to develop a cloud region in Chile at an investment of over $315 million. The cloud region will be powered by 100% renewable energy.

Prominent Data Center Investors

• Ascenty (Digital Realty)
• Amazon Web Services (AWS)
• Ava Telecom
• Claro
• EdgeConneX
• Equinix
• Google
• HostDime
• Huawei Technologies
• KIO Networks
• Lumen Technologies (Cirion)
• Microsoft
• ODATA (Aligned)
• Oracle
• Scala Data Centers
• Telecom Italia Sparkle
• CloudHQ

Renewable Energy Providers

• Acciona Energia
• EDP Renewables
• Enel Green Power
• Engie
• Elera Renováveis
• Faro Energy
• GreenYellow
• HDF Energy
• Iberdrola
• Mainstream Renewable Power
• RZK Energia
• Shell
• The AES Corporation
• TotalEnergies

KEY QUESTIONS ANSWERED: