A data centre is a physical building within an organization that houses IT activities and equipment used to store, process, and distribute data and applications. This association also contains a network of computer applications and storage solutions designed to facilitate the exchange of information and data. The global expansion of data centres is being driven by the transition from traditional on-premises physical servers to virtual network-based data centres as multi-cloud computing advances. A modern enterprise data centre can communicate with a variety of cloud and on-premises sites. Modern data centres may also use a public or private cloud computing solution to optimise operations and storage beyond physical infrastructure.
According to SPER Market Research, ‘South America Data Center Market Size- By Data Center Size, By Tier Type, By Absorption – Regional Outlook, Competitive Strategies and Segment Forecast to 2033’ states that the South America Data Center Market is estimated to reach USD 11 billion by 2033 with a CAGR of 8.94%.
Drivers:
The deployment of 5G networks has expedited digital transformation, IoT, smart cities, and the industrial revolution in South America. South American governments are focusing on digital transformation to attract foreign investment. The advancement of 5G technology raises the demand for high-bandwidth internet in Tier II and Tier III cities, resulting in a significant volume of data and encouraging the development of data centres to manage the information on par with large cities. The advent of 5G services affects the ICT, government, manufacturing, services, agriculture, and retail industries. 5G network services will help enterprises digitalize and speed the adoption of IoT applications.
Restraints:
Data centres require considerable initial investments due to the high capital expenditure associated with IT equipment and accompanying infrastructure, as well as an optimal site and licencing costs, depending on the type of data centre. They must also suffer a constant expense in order to operate optimally. Costs are incurred for a variety of infrastructure components, including building construction, IT equipment and software, and networking services, as well as paying trained professionals to keep the entire setup secure. The average annual cost of running a significant data centre is from $10 million to $25 million. Hardware, software, disaster recovery, continuous power supplies, and networking represent slightly less than half of total spending.
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The COVID-19 epidemic has had a significant influence on market growth for 2020. However, a major impediment to market growth is the increase in demand for cloud computing network solutions. Furthermore, a number of difficulties disproportionately impacted the data centre industry, including as a shortage of competent workers as a result of a complete and realistic lockdown. Furthermore, it is expected that in the post-pandemic period, data centre utilisation will increase in the government, healthcare, and BFSI sectors.
Brazil and Chile have the highest proportion of the South American data centre market. The Brazilian government offers incentives through the Regime Especial de Tributação do Programa Nacional de Banda Larga (REPNBL) programme, including purchasing infrastructure to boost colocation services in the country. Major market participants include Ascenty (Digital Realty Trust Inc), EdgeUno Inc, Equinix Inc, GTD Grupo Teleductos SA, HostDime Global Corp, Lumen Technologies Inc, and others.
South America Data Center Market Segmentation
By Data Center Size: Based on the Data Center Size, South America Data Center Market is segmented as; Large, Massive, Medium, Mega, Small.
By Tier Type: Based on the Tier Type, South America Data Center Market is segmented as; Tier 1 and 2, Tier 3, Tier 4.
By Absorption: Based on the Absorption, South America Data Center Market is segmented as; Non-Utilized, Utilized.
By Region: This research also includes data for Brazil, Chile, Rest of South America.
For More Information, refer to below link:-
South America Data Center Market Outlook
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