Latin America Data Center Market by Infrastructure (Hardware, and Others), by Type (Enterprise Data Centers, and others), by Data Center Rating (Tier I, and others), by Size (Small Data Centers, and others), by Server Rack Density (<10kW, and others), by Data Center Redundancy (N+1, and others), by PUE Outlook (Less than 1.2, and others), by Design Outlook (Traditional, and others), and by End User (Cloud Service Provider, and others)- Opportunity Analysis and Industry Forecast, 2024–2030
Industry: ICT & Media | Publish Date: 11-Jul-2025 | No of Pages: 363 | No. of Tables: 252 | No. of Figures: 177 | Format: PDF | Report Code : IC2446
Latin America Data Center Market Overview
The Latin America Data Center Market size was valued at USD 3.28 billion in 2023, and is predicted to reach USD 6.42 billion by 2030, at a CAGR of 10.1% from 2024 to 2030. The data center market, also known as the network infrastructure market, covers the entire lifecycle of specialized infrastructure for hosting computing systems, from initial planning and construction to ongoing operation and maintenance. This market includes a variety of components such as servers, storage systems, and networking equipment, that together provide services such as cloud computing and connectivity solutions.
Currently, the industry is experiencing widespread adoption of cloud services and the rise of edge computing aimed at reducing latency. Key trends shaping the market include a strong emphasis on sustainability, increased cybersecurity concerns, the integration of hybrid and multi-cloud approaches, and the growing influence of 5G networks. These trends highlight the industry's proactive efforts to meet the rising demand for scalable, efficient, and secure data processing and storage solutions amid the ongoing digital transformation. According to projections by the United States International Trade Commission, the data processing and storage market is expected to grow from USD 56 billion in 2020 to USD 90 billion by 2025.
Hyperscale Cloud Expansion Drives Regional Data Center Growth
Latin America is witnessing strong momentum from hyperscale cloud providers accelerating their regional infrastructure footprint. Major players like AWS, Microsoft Azure, and Google Cloud are announcing multi-billion-dollar investments in Brazil, Chile, and Mexico, driven by rising enterprise cloud demand and public-sector digitalization. These developments are not only increasing core data center capacity but also supporting regional resilience, localized compliance, and sovereign cloud capabilities.
Additionally, cloud regions under development are being paired with investments in renewable energy sourcing and carbon-neutral operations, reinforcing both digital scalability and environmental responsibility. This wave of hyperscale growth is elevating Latin America’s status as a strategic cloud deployment zone and boosting demand for supporting colocation and edge infrastructure.
Sustainability Pressures Reshape Design and Investment Strategies
Amid intensifying scrutiny over energy and water consumption, data center operators in Latin America are embedding sustainability at the core of infrastructure planning. Countries like Brazil and Colombia are leveraging abundant renewable energy resources to attract environmentally conscious data center investments, while also advancing regulations around emissions, land use, and cooling efficiency.
Operators are responding with innovations such as solar-powered campuses, closed-loop cooling, and district heating integrations. This sustainability shift is becoming a competitive differentiator in the market, as enterprises increasingly select providers based on ESG performance. It is also influencing site selection and long-term investment strategies, ensuring that environmental compliance aligns with business scalability.
Energy Supply Volatility and Grid Limitations Challenge Data Center Operations
The Latin America data center market is increasingly impacted by energy supply instability and grid limitations, particularly in countries facing aging infrastructure or constrained electricity transmission systems. While many regions boast renewable energy potential, inconsistent power delivery and periodic outages pose risks to uptime and operational reliability—especially for hyperscale and edge deployments outside major metros.
These challenges are further compounded by bureaucratic hurdles in securing grid access, long permitting cycles for utility connections, and competition for power with other high-consumption sectors. As energy demands surge with AI and cloud workloads, these structural bottlenecks are emerging as a critical constraint to scaling sustainable, high-performance data center infrastructure across the region.
Rising Demand for AI-ready Infrastructure Opens Premium Service Segments
The surge in enterprise adoption of AI, machine learning, and high-performance computing is creating new opportunities for data center operators across Latin America. Businesses in sectors such as finance, healthcare, logistics, and agriculture are seeking AI-capable infrastructure with high-density rack support, accelerated GPU integration, and ultra-low latency connectivity.
This demand is opening premium service segments where providers can differentiate through AI-optimized colocation, liquid cooling, and scalable interconnection ecosystems. With many hyperscalers also planning AI-focused cloud regions in Latin America, local operators have the opportunity to co-locate, partner, or provide edge support—positioning themselves at the forefront of next-generation digital infrastructure.
Competitive Landscape
The key market players operating in the Latin America data center industry include Ascenty, Scala Data Centers, Lumen Technologies Inc., SONDA SA, Terremark, EdgeUno Inc., Equinix Inc., HostDime Global Corp., ODATA (Patria Investments Ltd), HostDime, Elea Digital, KIO Networks, Amazon Web Services (AWS), Cirion Technologies, IBM Corporation, Microsoft Corporation, Oracle Corporation, Digital Realty, Alibaba Group Holding Limited, Alphabet Inc. (Google), and others.
Latin America Data Center Market Key Segments
By Infrastructure
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Hardware
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IT Hardware
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Servers
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Storage Systems
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Networking Equipment
-
-
Power Infrastructure Hardware
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Uninterruptible Power Supplies (UPS)
-
Generators
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Automatic Transfer Switches
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Power Distribution Units (PDUs)
-
-
Mechanical Infrastructure Hardware
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Computer-Room Air Conditioners (CRAC/CRA Units)
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Chillers
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Racks
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Cable Management Systems
-
-
Safety & Security Hardware
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Fire Suppression Systems
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Physical Security Systems (CCTV, access controls)
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-
-
Software
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DCIM & Monitoring
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Automation & Orchestration
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Backup & Disaster Recovery
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Security Software
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Virtualization Software
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Analytics & Reporting Software
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Other Software
-
-
Services
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Planning & Professional Services
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Site & Building Design
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System/Infrastructure Engineering
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Professional Advisory (compliance, energy audits)
-
-
Integration & Deployment Services
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Electrical & Mechanical Installation
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Commissioning & Acceptance Testing
-
-
Operation & Support Services
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Preventive & Corrective Maintenance
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Facilities Management / Remote Monitoring
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Support Services (helpdesk, onsite SLA support)
-
-
Hosting & Managed Services
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Colocation & Cloud Hosting Services
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Virtual/Private Hosting Platforms
-
-
By Type
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Enterprise Data Centers
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Colocation Data Centers
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Cloud Data Centers
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Hyperscale Data Centers
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Edge Data Centers
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Micro Data Centers
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Others
By Data Center Rating
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Tier I
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Tier II
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Tier III
-
Tier IV
By Size
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Small Data Centers
-
Med-sized Data Centers
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Large Data Centers
By Server Rack Density
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<10kW
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10-19kW
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20-29kW
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30-39kW
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40-49kW
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>50kW
By Data Center Redundancy
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N+1
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2N
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N+2
-
N
By PUE Outlook
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Less than 1.2
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1.2 - 1.5
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1.5 - 2.0
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Greater than 2.0
By Design Outlook
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Traditional
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Containerized
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Modular
By End User
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Cloud Service Provider
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Technology Provider
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Telecom
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Healthcare
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BFSI
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Retail & E-commerce
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Entertainment & Media
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Government
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Energy
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Others
By Country
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Brazil
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Mexico
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Argentina
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Colombia
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Chile
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Peru
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Other Countries
Key Players
-
Ascenty
-
Scala Data Centers
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Lumen Technologies Inc.
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SONDA SA
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Terremark
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EdgeUno Inc.
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Equinix Inc.
-
HostDime Global Corp.
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ODATA (Patria Investments Ltd)
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HostDime
-
Elea Digital
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KIO Networks
-
Amazon Web Services (AWS)
-
Cirion Technologies
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IBM Corporation
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Microsoft Corporation
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Oracle Corporation
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Digital Realty
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Alibaba Group Holding Limited
-
Alphabet Inc. (Google)
REPORT SCOPE AND SEGMENTATION:
|
Parameters |
Details |
|
Market Size in 2023 |
USD 3.28 Billion |
|
Revenue Forecast in 2030 |
USD 6.42 Billion |
|
Growth Rate |
CAGR of 10.1% from 2024 to 2030 |
|
Analysis Period |
2023–2030 |
|
Base Year Considered |
2023 |
|
Forecast Period |
2024–2030 |
|
Market Size Estimation |
Billion (USD) |
|
Growth Factors |
|
|
Companies Profiled |
20 |
|
Market Share |
Available for 10 companies |
|
Customization Scope |
Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope. |
|
Pricing and Purchase Options |
Avail customized purchase options to meet your exact research needs. |
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