Hyperscale operators in Latin America, including Google, Microsoft, Amazon Web Services, and Huawei Technologies, are driving the market in terms of sustainable investment and innovative technologies.
Chicago, Aug. 19, 2022 (GLOBE NEWSWIRE) -- According to Arizton’s latest research report, Latin America green data center market to grow at a CAGR of over 10% during 2022-2027. The Latin America green data center CRAC & CRAH units’ market was expected to reach $46.3 million by 2027.
Many diesel generators continue to be installed in new data centers. Operators and vendors have been working toward the development of effective alternatives to diesel generator utilization, keeping in mind the need to make data centers more sustainable and less dependent on the traditional utility grid.
Natural gas is supplied through pipelines on demand, which allows data center operators to closely control their supply as well as budget. The supply and distribution of natural gas are reliable because the pipelines are usually underground and protected from natural elements. Companies such as General Electric and Mitsubishi offer natural gas generators.
An increase in carbon emissions is one of the major challenges identified across various regions globally. To overcome the challenge, fuel cells are being installed to improve the efficiency of data centers. Fuel cells can be used to support significant loads for energy reliability, safety, stability, and reduced costs.
Latin America Green Data Center Market Report Scope
MARKET SIZE BY POWER CAPACITY (2027)
Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Cooling Technique, and General Construction
Latin America (Brazil, Mexico, Chile, Columbia, and Other Latin American Countries)
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AI & HPC Applications Driving Liquid Immersion & Direct-To-Chip Cooling Adoption
The Latin American data center market is witnessing substantial growth in terms of advanced technology adoption such as artificial intelligence (AI) & Machine Learning (ML). Countries across the globe have substantially started adopting AI for several operations. The most popular cooling technology used in High-Performance Computing (HPC) in data centers to support AI and ML workloads is liquid cooling. Several vendors that offer liquid immersion cooling and direct liquid cooling solutions have had a successful year in terms of demand. AI was a strong driver for the adoption of these cooling systems.
Vendors operating in the liquid immersion and direct-to-chip cooling market are strengthening their offerings through multiple OEM partnerships. For instance, Fujitsu, IBM, HPE, Dell Technologies, and ODM server suppliers actively offer direct-to-chip cooling and liquid immersion server racks to run AI and ML workloads to their HPC clients. The deployment of AI and ML workloads in data centers will increase the installation of these systems in the coming years. Also, vendors offering traditional data center cooling systems will partner with liquid immersion and direct liquid cooling vendors to support their existing data center customers in deploying HPC clusters.
The green data center market in Latin America is still at a nascent stage, with many of the older data centers being built at a high PUE of over 1.7. However, recent policy and regulatory drivers, including The Paris Agreement, the RE100, and certifications such as Leadership in Energy and Environmental Design (LEED) and ISO50001 are driving the market for green data center development in the region.
With cloud operators such as Microsoft, Google, AWS, and Huawei Technologies expanding their presence in the region, the market for innovations, and adoption of advanced technology driving the PUE of data centers down will gain prominence.
Colocation operators in the region that are driving efficiency in data center development include companies like HostDime, KIO Networks, AVA Telecom, and Scala Data Centers, among others. For instance, AVA Telecom’s São Paulo data center leverages solar power provided by Leveros Solar.
Various local governments are also pushing for efficiency in data center development and operations and have also started investing in renewable energy generation. For instance, in Paraguay, over 80% of the country’s energy is generated through renewable energy sources such as hydropower and biomass.
Renewable energy suppliers operating in the Latin America region include companies like ACCIONA, Enel Green Power, ENGIE, and HDF Energy. In February 2021, HDF Energy partnered with Atos, a leading IT service company, to develop hydrogen power solutions for data centers.
The Latin America green data center market has been dominated by local companies, especially those in the telecom domain. These companies enable data storage and computation across markets, especially the smaller and mid-sized markets in Latin America. They also work on the enhancement of fiber connectivity across various Tier 2 and Tier 3 cities and countries.
Data center operators that will offer renewable energy to power the facilities and have efficient power and cooling infrastructure will attract more customers and will be the major source of revenue generation for operators. Local telecom and colocation operators are likely to face high competition from global operators in terms of efficiency and advanced innovative technologies in the region.
Cooling Towers, Condensers & Dry Coolers
Cooling Technique
General Construction
Installation and Commissioning Services, Engineering and Building Designs
Physical Security and Fire Detection Suppression
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Read some of the top-selling reports:
Green Data Center Market - Global Outlook & Forecast 2022-2027
Latin America Data Center Server Market - Industry Analysis and Forecast 2022-2027
Latin America Data Center Construction Market - Industry Outlook and Forecast 2022-2027
Latin America Data Center Market - Industry Outlook & Forecast 2022-2027
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