The Latin America, Middle East and Africa Data Center Energy Storage Market is expected to witness market growth of 10.6% CAGR during the forecast period (2024-2031).
The Brazil market dominated the LAMEA Data Center Energy Storage Market by country in 2023, and is expected to continue to be a dominant market till 2031; thereby, achieving a market value of $46.5 million by 2031. The Argentina market is showcasing a CAGR of 12.1% during 2024-2031. Additionally, the UAE market would register a CAGR of 9.5% during 2024-2031.
The cost of energy storage systems, particularly lithium-ion batteries, has significantly decreased in recent years, making them more affordable for data centers. As the cost of energy storage continues to decline, more data centers are investing in them to reduce long-term energy costs and ensure greater operational efficiency. This trend is expected to continue as technological advancements drive further cost reductions.
Data centers are increasingly integrating energy storage systems connected to the electrical grid. This allows data centers to store energy during off-peak times and provide power back to the grid during peak times, creating a more dynamic and responsive energy system. Regulatory incentives and the growing need for grid stabilization are driving this trend.
The data center energy storage market is experiencing notable growth driven by the increasing demand for reliable and efficient energy solutions in data centers worldwide. Two significant factors contributing to this growth are Brazil's rapidly expanding e-commerce industry and increasing investments in data centers in the UAE. According to the International Trade Administration (ITA), Brazil, one of the most populous nations in Latin America, is witnessing a remarkable expansion in its e-commerce sector. Likewise, the UAE has emerged as one of the largest data center hubs in the Middle East, with significant investments fueling its growth. According to the International Trade Administration (ITA), further investments in the UAE data center industry are expected to reach $1 billion by 2026, with an average growth rate of 3.43% projected between 2022 and 2027. Thus, this market is poised for substantial growth, driven by the expanding e-commerce industry in Brazil and the increasing number of data centers in the UAE.
The Brazil market dominated the LAMEA Data Center Energy Storage Market by country in 2023, and is expected to continue to be a dominant market till 2031; thereby, achieving a market value of $46.5 million by 2031. The Argentina market is showcasing a CAGR of 12.1% during 2024-2031. Additionally, the UAE market would register a CAGR of 9.5% during 2024-2031.
The cost of energy storage systems, particularly lithium-ion batteries, has significantly decreased in recent years, making them more affordable for data centers. As the cost of energy storage continues to decline, more data centers are investing in them to reduce long-term energy costs and ensure greater operational efficiency. This trend is expected to continue as technological advancements drive further cost reductions.
Data centers are increasingly integrating energy storage systems connected to the electrical grid. This allows data centers to store energy during off-peak times and provide power back to the grid during peak times, creating a more dynamic and responsive energy system. Regulatory incentives and the growing need for grid stabilization are driving this trend.
The data center energy storage market is experiencing notable growth driven by the increasing demand for reliable and efficient energy solutions in data centers worldwide. Two significant factors contributing to this growth are Brazil's rapidly expanding e-commerce industry and increasing investments in data centers in the UAE. According to the International Trade Administration (ITA), Brazil, one of the most populous nations in Latin America, is witnessing a remarkable expansion in its e-commerce sector. Likewise, the UAE has emerged as one of the largest data center hubs in the Middle East, with significant investments fueling its growth. According to the International Trade Administration (ITA), further investments in the UAE data center industry are expected to reach $1 billion by 2026, with an average growth rate of 3.43% projected between 2022 and 2027. Thus, this market is poised for substantial growth, driven by the expanding e-commerce industry in Brazil and the increasing number of data centers in the UAE.
List of Key Companies Profiled
- Schneider Electric SE
- Siemens AG
- General Electric Company
- Eaton Corporation plc
- ABB Group
- Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.)
- Delta Electronics, Inc.
- Mitsubishi Electric Corporation
- Legrand S.A. (Legrand Group)
- Vertiv Holdings Co.
Market Report Segmentation
By Type
- Tier 3
- Tier 4
- Tier 2
- Tier 1
By Application
- BFSI
- Manufacturing
- Retail & E-commerce
- Healthcare
- Entertainment & Media
- Other Application
By Country
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 4. Competition Analysis - Global
Chapter 5. LAMEA Data Center Energy Storage Market by Type
Chapter 6. LAMEA Data Center Energy Storage Market by Application
Chapter 7. LAMEA Data Center Energy Storage Market by Country
Chapter 8. Company Profiles
Companies Mentioned
- Schneider Electric SE
- Siemens AG
- General Electric Company
- Eaton Corporation plc
- ABB Group
- Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.)
- Delta Electronics, Inc.
- Mitsubishi Electric Corporation
- Legrand S.A. (Legrand Group)
- Vertiv Holdings Co.
Methodology
LOADING...
