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

Description

List of Tables

The hyperscale data center market in South and Central America was valued at approximately USD 1.31 billion in 2023 and is projected to grow to around USD 4.82 billion by 2031, reflecting a compound annual growth rate (CAGR) of 17.7% during this period.

Drivers of Market Growth

The rapid advancement of technologies such as the Internet of Things (IoT), big data, machine learning, and artificial intelligence (AI) is significantly driving the growth of the hyperscale data center market in the region. IoT, in particular, generates vast amounts of data that require efficient storage, processing, and real-time analysis. With the proliferation of IoT devices, which connect various physical objects for data collection and communication, there is a growing need for data centers that can operate at the network's edge. These edge data centers provide local computing power and analytics capabilities, which help minimize latency and bandwidth usage when sending data to centralized facilities. This setup not only supports real-time decision-making but also enhances IoT applications across diverse sectors.

Moreover, the processing and analysis of large datasets necessitate substantial computational power and storage. Hyperscale data centers are designed with scalable and distributed architectures that enable organizations to efficiently handle big data. They improve data processing efficiency and facilitate real-time analytics. Additionally, machine learning and AI applications require significant computational resources for both training and inference, which hyperscale data centers can provide. By situating these data centers closer to data sources, organizations can further reduce latency, thereby supporting advanced applications such as autonomous vehicles, intelligent video analytics, predictive maintenance, and personalized recommendations.

Market Overview

Countries like Brazil and Argentina are emerging as key players in the hyperscale data center market due to their strategic locations, strong infrastructure, and supportive government policies. The market is witnessing robust growth driven by ongoing digital transformation and increasing internet penetration across the region. Investments in data center infrastructure are being fueled by both global technology giants and local enterprises looking to enhance their cloud services, data storage, and processing capabilities. For example, in May 2024, Equinix announced the opening of RJ3, its third data center in Rio de Janeiro, with an initial investment of USD 94 million. Such developments are indicative of the growing momentum in the hyperscale data center sector in South and Central America.

Market Segmentation

The hyperscale data center market in South and Central America can be segmented based on solutions, end users, industry verticals, and countries:

1. Solutions: The market is divided into several categories, including storage, networking, servers, security, and others. In 2023, the storage segment held the largest share of the market.

2. End Users: The market is segmented into colocation providers, enterprises, and cloud providers, with colocation providers leading the market share in 2023.

3. Industry Verticals: The market is categorized into banking, financial services, and insurance (BFSI), telecommunications and IT, government and public sectors, media and entertainment, among others. The BFSI sector accounted for the largest market share in 2023.

4. Countries: The market is further segmented into Brazil, Argentina, and the rest of South and Central America, with Brazil dominating the market share in 2023.

Key Players in the Market

Several prominent companies are active in the hyperscale data center market, including:

ABB Ltd
Dell Technologies Inc
EdgeConnex Inc.
Cisco Systems Inc
International Business Machines Corp (IBM)
Fujitsu Ltd
Hewlett Packard Enterprise Development LP
Intel Corp
Juniper Networks Inc
Schneider Electric SE

These companies are at the forefront of providing innovative solutions and infrastructure to support the growing demands of hyperscale data centers in South and Central America.

Product Code: BMIRE00031964

1. Introduction

1.1 Report Guidance
1.2 Market Segmentation

2. Executive Summary

2.1 Key Insights
2.2 Market Attractiveness

3. Research Methodology

3.1 Secondary Research
3.2 Primary Research
- 3.2.1 Hypothesis formulation:
- 3.2.2 Macroeconomic factor analysis:
- 3.2.3 Developing base number:
- 3.2.4 Data Triangulation:
- 3.2.5 Country-level data:

4. South and Central America Hyperscale Data Center Market Landscape

4.1 Overview
4.2 Ecosystem Analysis
4.3 List of Vendors in the Value Chain

5. South and Central America Hyperscale Data Center Market - Key Market Dynamics

5.1 Market Drivers
- 5.1.1 Advent of IoT, Big Data, Machine Learning, and AI
- 5.1.2 Increase in Data Traffic
5.2 Market Restraints
- 5.2.1 High Initial and Maintenance Cost
5.3 Market Opportunities
- 5.3.1 Increasing Deployment of 5G Services
- 5.3.2 Rising Demand for Cloud Computing
5.4 Market Trends
- 5.4.1 Increasing Demand for Sustainable Hyperscale Data Centers
5.5 Impact of Drivers and Restraints:

6. Hyperscale Data Center Market - South and Central America Analysis

6.1 South and Central America Hyperscale Data Center Market Revenue (US$ Million), 2021-2031
6.2 South and Central America Hyperscale Data Center Market Forecast Analysis

7. South and Central America Hyperscale Data Center Market Analysis - by Solutions

7.1 Storage
- 7.1.1 Overview
- 7.1.2 Storage: South and Central America Hyperscale Data Center Market - Revenue and Forecast, 2021-2031 (US$ Million)
7.2 Networking
- 7.2.1 Overview
- 7.2.2 Networking: South and Central America Hyperscale Data Center Market - Revenue and Forecast, 2021-2031 (US$ Million)
7.3 Server
- 7.3.1 Overview
- 7.3.2 Server: South and Central America Hyperscale Data Center Market - Revenue and Forecast, 2021-2031 (US$ Million)
7.4 Security
- 7.4.1 Overview
- 7.4.2 Security: South and Central America Hyperscale Data Center Market - Revenue and Forecast, 2021-2031 (US$ Million)
7.5 Others
- 7.5.1 Overview
- 7.5.2 Others: South and Central America Hyperscale Data Center Market - Revenue and Forecast, 2021-2031 (US$ Million)

8. South and Central America Hyperscale Data Center Market Analysis - by End User

8.1 Colocation Providers
- 8.1.1 Overview
- 8.1.2 Colocation Providers: South and Central America Hyperscale Data Center Market - Revenue and Forecast, 2021-2031 (US$ Million)
8.2 Enterprises
- 8.2.1 Overview
- 8.2.2 Enterprises: South and Central America Hyperscale Data Center Market - Revenue and Forecast, 2021-2031 (US$ Million)
8.3 Cloud Providers
- 8.3.1 Overview
- 8.3.2 Cloud Providers: South and Central America Hyperscale Data Center Market - Revenue and Forecast, 2021-2031 (US$ Million)

9. South and Central America Hyperscale Data Center Market Analysis - by Industry Vertical

9.1 BFSI
- 9.1.1 Overview
- 9.1.2 BFSI: South and Central America Hyperscale Data Center Market - Revenue and Forecast, 2021-2031 (US$ Million)
9.2 Telecom and IT
- 9.2.1 Overview
- 9.2.2 Telecom and IT: South and Central America Hyperscale Data Center Market - Revenue and Forecast, 2021-2031 (US$ Million)
9.3 Government and Public
- 9.3.1 Overview
- 9.3.2 Government and Public: South and Central America Hyperscale Data Center Market - Revenue and Forecast, 2021-2031 (US$ Million)
9.4 Media and Entertainment
- 9.4.1 Overview
- 9.4.2 Media and Entertainment: South and Central America Hyperscale Data Center Market - Revenue and Forecast, 2021-2031 (US$ Million)
9.5 Others
- 9.5.1 Overview
- 9.5.2 Others: South and Central America Hyperscale Data Center Market - Revenue and Forecast, 2021-2031 (US$ Million)

10. South and Central America Hyperscale Data Center Market - Country Analysis

10.1 South and Central America
- 10.1.1 South and Central America Hyperscale Data Center Market Overview
- 10.1.2 South and Central America Hyperscale Data Center Market - Revenue and Forecast Analysis - by Country
  - 10.1.2.1 South and Central America Hyperscale Data Center Market - Revenue and Forecast Analysis - by Country
  - 10.1.2.2 Brazil: South and Central America Hyperscale Data Center Market - Revenue and Forecast, 2021-2031 (US$ Million)
    - 10.1.2.2.1 Brazil: South and Central America Hyperscale Data Center Market Share - by Solutions
    - 10.1.2.2.2 Brazil: South and Central America Hyperscale Data Center Market Share - by End User
    - 10.1.2.2.3 Brazil: South and Central America Hyperscale Data Center Market Share - by Industry Vertical
  - 10.1.2.3 Argentina: South and Central America Hyperscale Data Center Market - Revenue and Forecast, 2021-2031 (US$ Million)
    - 10.1.2.3.1 Argentina: South and Central America Hyperscale Data Center Market Share - by Solutions
    - 10.1.2.3.2 Argentina: South and Central America Hyperscale Data Center Market Share - by End User
    - 10.1.2.3.3 Argentina: South and Central America Hyperscale Data Center Market Share - by Industry Vertical
  - 10.1.2.4 Rest of South and Central America: South and Central America Hyperscale Data Center Market - Revenue and Forecast, 2021-2031 (US$ Million)
    - 10.1.2.4.1 Rest of South and Central America: South and Central America Hyperscale Data Center Market Share - by Solutions
    - 10.1.2.4.2 Rest of South and Central America: South and Central America Hyperscale Data Center Market Share - by End User
    - 10.1.2.4.3 Rest of South and Central America: South and Central America Hyperscale Data Center Market Share - by Industry Vertical

11. Competitive Landscape

11.1 Heat Map Analysis by Key Players
11.2 Company Positioning and Concentration

12. Industry Landscape

12.1 Overview
12.2 Market Initiative

13. Company Profiles

13.1 ABB Ltd
- 13.1.1 Key Facts
- 13.1.2 Business Description
- 13.1.3 Products and Services
- 13.1.4 Financial Overview
- 13.1.5 SWOT Analysis
- 13.1.6 Key Developments
13.2 Dell Technologies Inc
- 13.2.1 Key Facts
- 13.2.2 Business Description
- 13.2.3 Products and Services
- 13.2.4 Financial Overview
- 13.2.5 SWOT Analysis
- 13.2.6 Key Developments
13.3 EdgeConnex Inc.
- 13.3.1 Key Facts
- 13.3.2 Business Description
- 13.3.3 Products and Services
- 13.3.4 Financial Overview
- 13.3.5 SWOT Analysis
- 13.3.6 Key Developments
13.4 Cisco Systems Inc
- 13.4.1 Key Facts
- 13.4.2 Business Description
- 13.4.3 Products and Services
- 13.4.4 Financial Overview
- 13.4.5 SWOT Analysis
- 13.4.6 Key Developments
13.5 International Business Machines Corp
- 13.5.1 Key Facts
- 13.5.2 Business Description
- 13.5.3 Products and Services
- 13.5.4 Financial Overview
- 13.5.5 SWOT Analysis
- 13.5.6 Key Developments
13.6 Fujitsu Ltd
- 13.6.1 Key Facts
- 13.6.2 Business Description
- 13.6.3 Products and Services
- 13.6.4 Financial Overview
- 13.6.5 SWOT Analysis
- 13.6.6 Key Developments
13.7 Hewlett Packard Enterprise Development LP
- 13.7.1 Key Facts
- 13.7.2 Business Description
- 13.7.3 Products and Services
- 13.7.4 Financial Overview
- 13.7.5 SWOT Analysis
- 13.7.6 Key Developments
13.8 Intel Corp
- 13.8.1 Key Facts
- 13.8.2 Business Description
- 13.8.3 Products and Services
- 13.8.4 Financial Overview
- 13.8.5 SWOT Analysis
- 13.8.6 Key Developments
13.9 Juniper Networks Inc
- 13.9.1 Key Facts
- 13.9.2 Business Description
- 13.9.3 Products and Services
- 13.9.4 Financial Overview
- 13.9.5 SWOT Analysis
- 13.9.6 Key Developments
13.10 Schneider Electric SE
- 13.10.1 Key Facts
- 13.10.2 Business Description
- 13.10.3 Products and Services
- 13.10.4 Financial Overview
- 13.10.5 SWOT Analysis
- 13.10.6 Key Developments

14. Appendix

14.1 About The Insight Partners
14.2 Word Index