— 28 November 2017
The South American market shows continuing signs of growth as large data center investment plans develop.
Currently there are 85 colocation data centers from 13 countries in South America (including Argentina, Brazil, Chile, Colombia, Mexico, and Peru).
Brazil has the largest computing services market in Latin America followed by Mexico, Chile and Argentina. As such, it has attracted the attention of vendors from across the world and become a very competitive environment. In seizing opportunities, vendors must contend with security concerns, connectivity shortfalls, high costs and a recessive economy throughout 2016. These make the Brazilian market a challenging, yet potentially rewarding one for companies with the resources and commitment to manage these issues.
At the start of the year global provider Equinix opened a $69m International Business Exchange (IBX) data centre in São Paulo, Brazil, the company’s largest to date.
The facility in Santana de Parnaíba, dubbed as SP3, has expanded the company’s portfolio in the country to five data centres with one more to be added following the completion of the acquisition of Verizon’s data centres in the Americas which include one building in São Paulo.
The opening of the data centre followed demand from enterprises, financial services firms and cloud and IT providers to interconnect with business partners at the digital edge.
In addition, analysts said the Latin American IaaS market is also growing as vendors provide cloud services in public, private and hybrid models.
Digital Transformation Program Manager Renato Rosa, said: “However, user concerns regarding security and transparency, inadequate connectivity infrastructure, and scarcity of tech experts still hinder investments in IT outsourcing, especially cloud computing.
“Data is becoming the most valuable asset for any company, and the growth of IoT will generate even more data to be tracked by companies on a daily basis.
“In this context, it is expected that investments in cloud computing to process and store this data; big data analytics to extract the data value; and security to protect the data, will steadily rise.”
HostDime has purchased a land parcel in Bogotá, Colombia where it intends to build a Tier IV data center to meet the booming demand of the local market, the company announced in October 2017. HostDime also launched operations at its new Tier III data center in João Pessoa, investing 50 million Brazilian Real ($15 million USD).
Data Center Services Market in Latin America, Forecast to 2021