Brazil Data Center Storage - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2023 - 2029)

The Brazil Data Center Storage Market size is estimated at USD 0.78 billion in 2024, and is expected to reach USD 1.16 billion by 2029, growing at a CAGR of 8.40% during the forecast period (2024-2029).

Cloud computing is a major accelerating factor in the demand for data center storage. Brazil announced USD 75 billion in infrastructure financing as part of a Growth Acceleration Programme. There is an increase in the structures of large US-based providers like AWS, Google, Microsoft, IBM, and Oracle, which carry contract operations in the interior of São Paulo and in Rio de Janeiro. The expansion plans also include projections for operations of Chinese giants in the country. Such factors are drving the demand for the market.

Key Highlights

• Under Construction IT Load Capacity: The upcoming IT load capacity of the Brazilian data center market is expected to reach 1,200 MW by 2029.
• Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 0.4 million sq. ft by 2029.
• Planned Racks: The country's total number of racks to be installed is expected to reach 231000 units by 2029. Sao Paulo is expected to house the maximum number of racks by 2029.
• Planned Submarine Cables: There are close to 16 submarine cable systems connecting Brazil, and many are under construction.

Brazil Data Center Storage Market Trends

IT and Telecom to Hold Significant Market Share

• The Brazilian telecom industry made strides in expanding its network capacity with more fiber and wireless deployments. The demand for edge data centers from the growth of 5G is expected to increase during the forecast period.
• In September 2023, V.tal unveiled V.OA, a new project to build another edge data center. It is estimated to have a total power of 6 MW and 400 racks.
• By 2035, the introduction of 5G in Brazil may have an economic impact of USD 1.2 trillion and a productivity boost of USD 3 trillion. Thus, the inclusion of network advancements may increase data generation and lead to the demand for more data processing facilities for analysis and storage.
• The 5G spectrum winners are expected to meet various buildout obligations, including coverage to 26 capital cities and the federal district by July 2022, coverage to all municipalities with more than 30,000 inhabitants by 2029, and 4G coverage to all towns with more than 600 inhabitants by 2028. Owing to such factors, the demand for data centers from the telecom segment is constantly rising, mirrored by a rapid rise in data center storage. The manufacturers of data centers are developing cutting-edge, affordable solutions that are scalable and secure to fulfill the rising demand from the telecom industries.

All-Flash Storage to Witness Significant Growth

• The adoption of flash storage is highly dependent on its benefits, such as power consumption, increasing performance, and ease of maintenance, which have been boosting the adoption rate. Mission-critical applications, including real-time analytics and demanding database systems, can be performed easily with flash storage systems. The adoption of cloud technology is leading the demand for all-flash storage.
• Brazil is one of the most active cloud markets in Latin America. The country is experiencing high demand for critical services that connect LATAM to the global market. Cloud adoption in Brazil has grown by 40% since 2019, and it is projected to grow to 19% by 2033. In May 2023, China Telecom do Brasil launched eSurfing Cloud services in the country.
• With big data and analytics, data access and processing patterns demand higher storage performance and increased concurrency (big data aggravates data mobility issues), where the NVMe-based SSD is gaining traction in the market studied. Most resources are likely to be used to purchase big data and analytics solutions in Brazil. As per industry experts, a 28% increase to USD 490 million will be made in machine learning (ML) and artificial intelligence (AI) spending by 2025.
• Recently, Dell launched midrange all-flash enterprise storage arrays in Brazil. The PowerStore featured seven times faster and three times lower latency than previous Dell EMC midrange storage arrays. It was specifically designed with the faster NVMe (non-volatile memory express) protocol and supported storage-class memory through Intel Optane solid-state drives.

Brazil Data Center Storage Industry Overview

Brazil's data center storage market is moderately consolidated among the players and has gained a competitive edge in recent years. A few major players are Dell Inc., Hewlett Packard Enterprise, and Huawei Technologies Co. Ltd. These major players have a prominent market share and focus on expanding their customer base across the region. These companies leverage strategic collaborative initiatives to increase their market share and profitability. For instance,

• In March 2024, Western Digital expanded its product lineup with the introduction of a 24 TB WD Red Pro mechanical hard drive designed specifically for NAS (network-attached storage) applications. The company launched a 24TB model earlier, targeted at enterprise and data center use.
• In March 2024, Pure Storage launched advanced data storage technologies and services. The company announced new self-service capabilities across its Pure1 storage management platform and Evergreen portfolio, offering software-based solutions, all via a single platform experience, to global customers.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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