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Brazil Data Center Market - Investment Analysis and Growth Opportunities 2020-2025

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Last updated: 1 Jun 2020 Update History

Report Pages: 92

Partner Publisher: Arizton Advisory and Intelligence

Analyst: Faizan Akhtar

Executive Summary

Data Center Market in Brazil to Witness Increased Investments from Hyperscale Colocation Projects

Brazil is witnessing an increased investment in its cloud computing infrastructure. The Brazilian government has framed the Regime of the National Broadband Program (REPNBL), which is an incentive program for data center operators to improve broadband connectivity in the country. The Brazil government intends to improve fiber connectivity in the Northern region through its inter-ministerial project. Furthermore, the increased merger and acquisition activities have laid the foundation for significant investments in the industry. Ceara, Rio de Janeiro, and Santa Catarina are the cities that witnessed investment in data center facilities in 2019.

Digital investments in artificial intelligence (AI) and machine learning for cyber security and the introduction of the General Law of Protection of Personal Data in 2020 will further drive the investments.

What is the Impact of the Current COVID-19 Pandemic in the Brazil Market?

The outbreak of the COVID-19 pandemic has delayed the construction of several new facilities in Brazil. The pandemic has halted ongoing construction from both enterprises and colocation service providers in Brazil. Analyst at Arizton expects that the impact of COVID-19 will have a higher impact on upcoming projects scheduled to be opened in Q4 2020 and Q1 2021.

Due to COVID-19, the data center infrastructure market in Brazil is likely to witness supply chain disruptions, as many vendors depend on import of IT and power and cooling infrastructure solutions. However, the impact of COVID-19 on the data center operations will be low in Brazil.

What are the Key Factors Attracting Investments in Brazil?

The telecommunication service in Brazil is likely to witness significant investment during 2020-2025. Also, the deployment of 5G network is likely to increase investments in data center market in Brazil. For instance, Ericsson is likely to invest for the installation of 5G network in Brazil in the next three years. In 2019, Sao Paulo was a key investment data center destination in Brazil and was followed by Rio de Janeiro.

What Business Intelligence does this Report Provide?

The report provides an assessment of the data center investment in the Brazil by colocation, hyperscale, and enterprise operators. It also includes the detailed analysis of investment in terms of area (square feet) and power capacity (MW) in major cities in Brazil. An in-depth analysis of the impact of the COVID-19 on the data center market in Brazil is included in the report.

Furthermore, the report also includes a detailed analysis of the colocation industry in Brazil, and retail & wholesale colocation pricing in Brazil.

A detailed study of the existing market landscape, an in-depth industry analysis, and insightful predictions about the data center market size in Brazil during 2020-2025, is included in this exclusive report.

The report further categorizes the data center market in Brazil into multiple segments and sub-segments with sizing and forecast. The report also profiles prominent investors, construction contractors, and infrastructure vendors in the data center market in Brazil.

Key Developments

  • VRLA UPS systems are dominating the data center market in Brazil with an adoption rate of more than 90%. However, it is estimated that lithium-ion UPS systems will replace VRLA systems by 2025.
  • The growing adoption of edge computing and modular data center has encouraged the adoption of micro and mini generators in Brazil.
  • Operators are using indirect evaporative cooling (IDEC) with evaporative and indirect free cooling systems.
  • The data center industry in Brazil is witnessing a mix of greenfield and modular data center development, where the latter dominates the market in terms of investments.
  • Basic PDUs have a sizable presence in the market. However, intelligent PDUs will gain traction as there is a operate in a sustainable environment.
  • The adoption of automated DCIM solutions is likely to grow in the near future. The use of DCIM software has led to savings in cooling costs by more than 10%.

Key Companies Mentioned in this Report Include

IT Infrastructure Providers – Arista, Cisco, Dell Technologies, Hewlett Packard Enterprise, Huawei, IBM, Lenovo, NetApp, Pure Storage

Construction Service Providers - ALEC Engineering and Contracting, ABB, Fluor, Constructora Sudamericana, AECOM, Acecto TI, Crupo ZFB

Support Infrastructure Providers – ABB, Eaton, Rittal, Schneider Electric, STULZ, Vertiv, Kinolt

Data Center Investors - Equinix, Angola Cables, Ascenty, Unifique, Odata, Scala

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