Study Period | 2018 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Market Volume (2025) | 0.88 Thousand MW |
Market Volume (2030) | 1.36 Thousand MW |
CAGR | 9.08 % |
Market Concentration | Medium |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
Brazil Data Center Market Analysis
The Brazil Data Center Market size is estimated at 0.88 thousand MW in 2025, and is expected to reach 1.36 thousand MW by 2030, growing at a CAGR of 9.08%. Further, the market is expected to generate colocation revenue of USD 2,074.7 Million in 2025 and is projected to reach USD 3,503.7 Million by 2030, growing at a CAGR of 11.05% during the forecast period (2025-2030).
Brazil's data center market is experiencing significant transformation driven by rapid digitalization across industries. The banking sector has emerged as a key technology adopter, with Brazilian banks investing BRL 35.5 billion in technology initiatives during 2022, focusing on IoT, robotic process automation, cloud computing, and artificial intelligence. This digital transformation is reflected in consumer behavior, with digital banking interactions reaching 92% in the third quarter of 2022, demonstrating the market's increasing reliance on digital infrastructure. The advancement in digital services has created substantial demand for data processing and storage capabilities, pushing organizations to modernize their infrastructure and adopt more sophisticated data center solutions.
The market is witnessing a notable shift toward higher-tier data center facilities, particularly Tier 3 and Tier 4, as businesses prioritize reliability and performance. This transition is supported by the robust growth of social media and digital platforms, with Brazil recording 171.5 million social media users in 2022, representing 79.9% of the total population. The increasing digital consumption has led to greater demands for data processing capabilities, driving investments in advanced data center infrastructure. Major operators are responding to this demand by expanding their facilities and implementing cutting-edge technologies to enhance operational efficiency and service delivery.
The wholesale and hyperscale segments are experiencing substantial growth, driven by the increasing adoption of cloud services and digital transformation initiatives. The data center industry has seen significant investment in security solutions, with spending exceeding USD 900 million, reflecting the growing emphasis on data protection and compliance. This focus on security has become particularly crucial as organizations handle increasingly complex workloads and sensitive data, leading to the development of more sophisticated data center facilities with advanced security features and compliance certifications.
The market is characterized by ongoing infrastructure modernization and expansion projects, with major operators announcing significant capacity additions. The rise of IoT adoption, reaching 810.7 million devices in 2022, has created new demands for edge computing and distributed data center capabilities. The fintech sector has emerged as a significant driver of Brazil data center demand, with investments reaching USD 1,200 million in 2021, necessitating robust infrastructure to support digital financial services. These developments are reshaping the competitive landscape, with providers focusing on expanding their capabilities to meet the evolving needs of enterprise customers and cloud service providers.
Brazil Data Center Market Trends
Increasing consumption of data by multiple end users. Such as e-commerce, and rising mibile connections drives the market growth
- The total data traffic per smartphone in the country was 5.3 GB in 2022, which is expected to register a CAGR of 16.3% during the forecast period to reach 17.1 GB by 2029.
- In Brazil, the average mobile-connected laptop was anticipated to generate 11.2 GB of mobile data traffic per month by 2022, up from 4.3 gigabytes per month in 2017.
- The consumption of data by multiple end users motivates this trend. For instance, e-commerce in Brazil grew by 12% in 2018 compared to 2017, closing the year with a revenue of USD 15 billion. This was the first time the industry registered double-digit growth since 2015. Brazil shows signs of overcoming its 2014-2016 economic downturn with positive projected growth for e-commerce at 15%. E-commerce is expected to generate USD 16.8 billion (BRL 61.2 billion) in 2019. In Brazil, 58 million consumers made at least one virtual purchase in 2018, representing 27% of the country’s population and an increase of 6% compared to 2017, making e-commerce a viable sales channel worth exploring. The needs of the end users are changing, and the demand for more data storage is resulting in the addition of more servers in data centers, contributing to the growth of the data center market in Brazil.
The high internet and smartphone technology adoption by various businesses and growing digital usage across the nation drives the market demand
- The total number of smartphone users in the country was 143.43 million in 2022, which is expected to register a CAGR of 3.5% during the forecast period to reach 185.2 million by 2029.
- Digital usage is expanding rapidly in Brazil. The quick internet and smartphone technology adoption in various businesses has impacted consumer behavior. For instance, the per capita purchasing power per person in Brazil increased from 2.94 trillion in 2016 to 3.44 trillion in 2021. As a result, more people can purchase smartphones, leading to a growing number of smartphone users.
- The internet penetration of the country increased from 73% in 2017 to 88% in 2022, while the number of internet users increased from 154 million in 2017 to 191 million in 2022. Owing to such extensive use, digital payment services were promoted, and their application increased due to the COVID-19 pandemic. Consequently, there are more smartphone users in Brazil. Smartphones accounted for 13% of IP traffic in 2017 and reached 39% of IP traffic in 2022. Thus, the rising use of smartphones in the Brazilian market results in a constant increase in data, necessitating a growing amount of storage space to accommodate this uncontrollable flow of data with the need for real-time processing and analysis. Data centers must manage the sheer amount of data. Thus, the requirement for extra racks in data centers in Brazil may increase as the number of smartphone users rises.
OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Quick adoption of 5G network, availability of commercial 5G in the 3.5GHz band, and growing internet population drives the market growth
- Rising fixed broadband subscriptions, Investment strategies and the growth of fiber networks across the country drives the market growth
- People across the nation increasingly reliant on the internet for banking, business, & telecommunication services and increasing FTTH subscribers across the region drives the market growth
Segment Analysis: By Data Center Size
Large Segment in Brazil Data Center Market
The large data center segment dominates the Brazilian market, commanding approximately 48% market share in 2024. With an IT load capacity of around 356 MW in 2024, large data centers are concentrated primarily in São Paulo with nearly 77% of facilities, followed by Rio de Janeiro at 10%, and other regions at 13%. The segment's prominence is driven by major operators establishing significant facilities across key metropolitan areas. Leading providers like Scala Data Centers are planning to establish facilities with 96 MW capacity, while Ascenty Data Centers is developing seven facilities with a combined capacity of 73.3 MW, and NABIAX is adding 10.7 MW during the forecast period. These expansions reflect the robust demand for large-scale data processing capabilities in Brazil's growing digital economy.

Mega Segment in Brazil Data Center Market
The mega data center segment is experiencing unprecedented growth in the Brazilian market, with an expected growth rate of approximately 58% during 2024-2029. This remarkable expansion is primarily driven by the increasing adoption of cloud technologies, 5G networks, and industrial digitalization across the country. Ten mega-sized data center facilities are anticipated from Scala Data Centers, one of the significant operators in the market. The segment's growth is particularly concentrated in the São Paulo region, where Scala Data Centers has planned substantial developments, including 90 MW of IT load capacity in the Tambore campus and 106 MW in the Jundiai campus. This aggressive expansion reflects the rising demand for mega-scale computing infrastructure to support cloud services, e-commerce operations, and advanced telecom services.
Remaining Segments in Data Center Size Market
The Brazilian data center market encompasses several other significant segments, including massive, medium, and small data centers, each serving distinct market needs. The massive segment caters to substantial data processing requirements while maintaining more flexibility than mega facilities. Medium-sized data centers serve regional and specialized computing needs, offering balanced capabilities for diverse business requirements. Small data centers, while having a limited market share, play a crucial role in serving specific local needs and edge computing applications. The diversification across these segments ensures that the market can accommodate varying scales of operations, from local enterprises to regional businesses, while complementing the larger facilities in the ecosystem.
Segment Analysis: By Tier Type
Tier 3 Segment in Brazil Data Center Market
Tier 3 data centers dominate the Brazilian data center market, commanding approximately 67% market share in 2024. This significant market presence is driven by the segment's optimal balance of reliability and cost-effectiveness for most enterprise applications. The segment's prominence is particularly evident in São Paulo, which hosts the maximum number of Tier 3 data centers with about 78% of the country's Tier 3 facilities, followed by Rio de Janeiro and other hotspots. Major operators like Ascenty Data Centers, EdgeUno Inc., and Scala Data Centers have established multiple Tier 3 certified facilities across these regions, offering robust infrastructure with N+1 redundancy and 99.982% availability, meeting tier 3 data center requirements.
Tier 4 Segment in Brazil Data Center Market
The Tier 4 segment is experiencing rapid expansion in the Brazilian data center market, projected to grow at approximately 22% during 2024-2029. This remarkable growth is driven by increasing demand for mission-critical applications requiring the highest levels of reliability and uptime. The segment's expansion is supported by major investments from key players like Scala Data Centers, which leads the market with 33 MW of Tier 4 capacity. The growth is particularly concentrated in São Paulo and Rio de Janeiro regions, where operators are establishing new Tier 4 facilities to meet the rising demand from financial services, cloud providers, and other enterprises requiring maximum reliability and redundancy in their data center operations.
Remaining Segments in Tier Type Segmentation
Tier 1 and Tier 2 data centers represent the basic level of data center infrastructure in Brazil, offering fundamental capabilities with limited redundancy. These segments are gradually losing market share as businesses increasingly prioritize higher reliability and uptime guarantees. The shift away from these lower-tier facilities is particularly evident in enterprise-level applications, where organizations are migrating their critical workloads to higher-tier facilities. This transition reflects the broader market evolution towards more sophisticated and reliable data center infrastructure, though these segments continue to serve specific niche applications where basic infrastructure requirements are sufficient.
Segment Analysis: By Absorption
Utilized Segment in Brazil Data Center Market
The utilized segment dominates the Brazil data center market, accounting for approximately 91% of the total IT load capacity in 2024. This segment's prominence is driven by the increasing adoption of cloud services, e-commerce platforms, and digital banking solutions across Brazil. The segment is experiencing robust growth, projected to expand at around 13% during 2024-2029, driven by the relocation of cloud hyperscale data centers and the rapid expansion of Brazil's startup ecosystem. The country's thriving venture capital environment, with over 300 VC firms actively operating, continues to fuel demand for data center services. Major cloud providers and enterprises are increasingly utilizing data center facilities to support their growing digital infrastructure needs, while the rising adoption of advanced technologies like artificial intelligence, big data analytics, and blockchain is further driving utilization rates. The segment's growth is also supported by the expanding fintech sector and the increasing digitalization of traditional industries, leading to higher absorption rates across data center facilities.
Non-Utilized Segment in Brazil Data Center Market
The non-utilized segment in Brazil's data center market represents the available capacity that remains unoccupied, serving as a strategic reserve for future expansion and new customer onboarding. This segment plays a crucial role in maintaining operational flexibility and accommodating sudden spikes in demand from existing and new clients. Data center operators strategically maintain certain levels of non-utilized capacity to ensure quick deployment capabilities for hyperscale clients and enterprise customers. The segment demonstrates the market's preparedness for future growth while also indicating the industry's commitment to maintaining optimal utilization levels. The careful balance between utilized and non-utilized capacity helps data center operators optimize their operational efficiency while ensuring they can meet rapidly evolving market demands. This approach allows facilities to maintain service quality and performance standards while preparing for future expansion opportunities in Brazil's growing digital economy.
Segment Analysis: By Hotspot
Brazil Data Center Industry Overview
Top Companies in Brazil Data Center Market
The Brazil data center market is characterized by continuous innovation and strategic expansion initiatives from major data center market players. Companies are focusing on developing advanced facilities with higher power densities and enhanced cooling capabilities to meet growing demand. Operational excellence is being achieved through increased automation, improved energy efficiency measures, and the adoption of sustainable practices across facilities. Market leaders are actively pursuing geographic expansion, particularly in key regions like São Paulo and Rio de Janeiro, while also upgrading existing infrastructure to support emerging technologies. Strategic partnerships with cloud providers, telecom operators, and technology vendors are becoming increasingly common to enhance service offerings and market reach. The industry is witnessing significant investments in new facility construction and modernization of existing data centers to accommodate the growing demand for colocation and cloud services.
Market Dominated by Global Infrastructure Specialists
The Brazilian data center market exhibits a moderate level of consolidation, with a mix of global infrastructure providers and regional specialists competing for market share. International players like Digital Realty Trust (through Ascenty), Equinix, and Lumen Technologies have established strong footholds in the market through strategic acquisitions and organic growth. These global operators leverage their extensive experience, technical expertise, and financial resources to develop state-of-the-art facilities. Local players maintain their competitive edge through deep market knowledge, established customer relationships, and specialized service offerings tailored to regional requirements.
The market is experiencing ongoing consolidation through mergers and acquisitions, as larger players seek to expand their footprint and capabilities. Strategic partnerships and joint ventures are becoming increasingly common, particularly between international operators and local entities, to combine global expertise with local market understanding. The competitive landscape is further shaped by the entry of new players, especially in emerging segments like edge computing and specialized colocation services, leading to increased market dynamism and innovation.
Innovation and Sustainability Drive Future Success
Success in the Brazilian data center market increasingly depends on operators' ability to deliver innovative, sustainable, and scalable solutions. Incumbent providers must focus on expanding their service portfolios, enhancing operational efficiency, and maintaining high reliability standards to retain and grow their market share. Investment in advanced technologies, including AI-driven operations, energy-efficient cooling systems, and renewable energy solutions, is becoming crucial for maintaining competitive advantage. Building strong relationships with cloud providers and enterprise customers, while also developing specialized solutions for emerging sectors like fintech and e-commerce, will be essential for long-term success.
New entrants and challenger operators can gain ground by focusing on underserved markets and specialized service segments. Developing edge computing capabilities, offering flexible colocation options, and providing value-added services can help differentiate their offerings in a competitive market. Success will also depend on navigating regulatory requirements, particularly around data protection and environmental compliance, while maintaining strong relationships with local authorities and business communities. The ability to adapt to changing customer needs, particularly in terms of power density, connectivity options, and security requirements, will be crucial for sustained growth in the market.
Brazil Data Center Market Leaders
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Ascenty (Digital Realty Trust Inc.)
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Equinix Inc.
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HostDime Global Corp.
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Scala Data Centers
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Terremark (Verizon)
- *Disclaimer: Major Players sorted in no particular order
Brazil Data Center Market News
- November 2022: Ascenty plans to invest BRL 1.5 billion (USD 290 million) in constructing five new data centers in South America. The locations of the data centers will be Brazil, Chile, and Colombia.
- October 2022: In So Paulo, Brazil, Equinix opened a brand-new hyperscale data center. The new SP5x facility, situated in Santana de Parnaba close to the organization's SP3 IBX data center, has a capacity of roughly 5 MW in its initial phase. After all the phases are completed, the data center should have a total capacity of 14.4 MW. According to the business, it plans to spend USD 116.4 million on the facility.
- August 2022: In Brazil's So Paulo, Scala Data Centers opened a new data center. At the business' Tamboré campus in So Paulo's Barueri neighborhood, SP4 is now operational. With 6 MW of IT power capacity, the site is operational in its initial stage. The second stage of SP4 is anticipated to begin operations in September, adding 6 MW of IT capacity.
Free With This Report
We provide a complimentary and exhaustive set of data points on the country and regional level metrics that present the fundamental structure of the industry. Presented in the form of 50+ free charts, the sections cover difficult to find data on various countries on smartphone users, data traffic per smartphone, mobile and broadband data speed, fiber connectivity network, and submarine cables.
Brazil Data Center Market Report - Table of Contents
1. EXECUTIVE SUMMARY & KEY FINDINGS
2. REPORT OFFERS
3. INTRODUCTION
- 3.1 Study Assumptions & Market Definition
- 3.2 Scope of the Study
- 3.3 Research Methodology
4. MARKET OUTLOOK
- 4.1 It Load Capacity
- 4.2 Raised Floor Space
- 4.3 Colocation Revenue
- 4.4 Installed Racks
- 4.5 Rack Space Utilization
- 4.6 Submarine Cable
5. Key Industry Trends
- 5.1 Smartphone Users
- 5.2 Data Traffic Per Smartphone
- 5.3 Mobile Data Speed
- 5.4 Broadband Data Speed
- 5.5 Fiber Connectivity Network
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5.6 Regulatory Framework
- 5.6.1 Brazil
- 5.7 Value Chain & Distribution Channel Analysis
6. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2030 AND ANALYSIS OF GROWTH PROSPECTS)
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6.1 Hotspot
- 6.1.1 Rio de Janeiro
- 6.1.2 Sao Paulo
- 6.1.3 Rest of Brazil
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6.2 Data Center Size
- 6.2.1 Large
- 6.2.2 Massive
- 6.2.3 Medium
- 6.2.4 Mega
- 6.2.5 Small
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6.3 Tier Type
- 6.3.1 Tier 1 and 2
- 6.3.2 Tier 3
- 6.3.3 Tier 4
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6.4 Absorption
- 6.4.1 Non-Utilized
- 6.4.2 Utilized
- 6.4.2.1 By Colocation Type
- 6.4.2.1.1 Hyperscale
- 6.4.2.1.2 Retail
- 6.4.2.1.3 Wholesale
- 6.4.2.2 By End User
- 6.4.2.2.1 BFSI
- 6.4.2.2.2 Cloud
- 6.4.2.2.3 E-Commerce
- 6.4.2.2.4 Government
- 6.4.2.2.5 Manufacturing
- 6.4.2.2.6 Media & Entertainment
- 6.4.2.2.7 Telecom
- 6.4.2.2.8 Other End User
7. COMPETITIVE LANDSCAPE
- 7.1 Market Share Analysis
- 7.2 Company Landscape
-
7.3 Company Profiles (includes Global Level Overview, Market Level Overview, Core Business Segments, Financials, Headcount, Key Information, Market Rank, Market Share, Products and Services, and Analysis of Recent Developments).
- 7.3.1 Ascenty (Digital Realty Trust Inc.)
- 7.3.2 DC Matrix Internet LTDA
- 7.3.3 EdgeUno Inc.
- 7.3.4 Equinix Inc.
- 7.3.5 HostDime Global Corp.
- 7.3.6 Link Datacenter
- 7.3.7 Lumen Technologies Inc.
- 7.3.8 Nabiax
- 7.3.9 ODATA (Patria Investments Ltd)
- 7.3.10 Quantico Data Center
- 7.3.11 Scala Data Centers
- 7.3.12 Terremark (Verizon)
- 7.4 LIST OF COMPANIES STUDIED
8. KEY STRATEGIC QUESTIONS FOR DATA CENTER CEOS
9. APPENDIX
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9.1 Global Overview
- 9.1.1 Overview
- 9.1.2 Porter’s Five Forces Framework
- 9.1.3 Global Value Chain Analysis
- 9.1.4 Global Market Size and DROs
- 9.2 Sources & References
- 9.3 List of Tables & Figures
- 9.4 Primary Insights
- 9.5 Data Pack
- 9.6 Glossary of Terms
List of Tables & Figures
- Figure 1:
- VOLUME OF IT LOAD CAPACITY, MW, BRAZIL, 2018 - 2030
- Figure 2:
- VOLUME OF RAISED FLOOR AREA, SQ.FT. ('000), BRAZIL, 2018 - 2030
- Figure 3:
- VALUE OF COLOCATION REVENUE, USD MILLION, BRAZIL, 2018 - 2030
- Figure 4:
- VOLUME OF INSTALLED RACKS, NUMBER, BRAZIL, 2018 - 2030
- Figure 5:
- RACK SPACE UTILIZATION, %, BRAZIL, 2018 - 2030
- Figure 6:
- COUNT OF SMARTPHONE USERS, IN MILLION, BRAZIL, 2018 - 2030
- Figure 7:
- DATA TRAFFIC PER SMARTPHONE, GB, BRAZIL, 2018 - 2030
- Figure 8:
- AVERAGE MOBILE DATA SPEED, MBPS, BRAZIL, 2018 - 2030
- Figure 9:
- AVERAGE BROADBAND SPEED, MBPS, BRAZIL, 2018 - 2030
- Figure 10:
- LENGTH OF FIBER CONNECTIVITY NETWORK, KILOMETER, BRAZIL, 2018 - 2030
- Figure 11:
- VOLUME OF IT LOAD CAPACITY, MW, BRAZIL, 2018 - 2030
- Figure 12:
- VOLUME OF HOTSPOT, MW, BRAZIL, 2018 - 2030
- Figure 13:
- VOLUME SHARE OF HOTSPOT, %, BRAZIL, 2018 - 2030
- Figure 14:
- VOLUME SIZE OF RIO DE JANEIRO, MW, BRAZIL, 2018 - 2030
- Figure 15:
- VOLUME SHARE OF RIO DE JANEIRO, MW, HOTSPOT, %, BRAZIL, 2018 - 2030
- Figure 16:
- VOLUME SIZE OF SAO PAULO, MW, BRAZIL, 2018 - 2030
- Figure 17:
- VOLUME SHARE OF SAO PAULO, MW, HOTSPOT, %, BRAZIL, 2018 - 2030
- Figure 18:
- VOLUME SIZE OF REST OF BRAZIL, MW, BRAZIL, 2018 - 2030
- Figure 19:
- VOLUME SHARE OF REST OF BRAZIL, MW, HOTSPOT, %, BRAZIL, 2018 - 2030
- Figure 20:
- VOLUME OF DATA CENTER SIZE, MW, BRAZIL, 2018 - 2030
- Figure 21:
- VOLUME SHARE OF DATA CENTER SIZE, %, BRAZIL, 2018 - 2030
- Figure 22:
- VOLUME SIZE OF LARGE, MW, BRAZIL, 2018 - 2030
- Figure 23:
- VOLUME SIZE OF MASSIVE, MW, BRAZIL, 2018 - 2030
- Figure 24:
- VOLUME SIZE OF MEDIUM, MW, BRAZIL, 2018 - 2030
- Figure 25:
- VOLUME SIZE OF MEGA, MW, BRAZIL, 2018 - 2030
- Figure 26:
- VOLUME SIZE OF SMALL, MW, BRAZIL, 2018 - 2030
- Figure 27:
- VOLUME OF TIER TYPE, MW, BRAZIL, 2018 - 2030
- Figure 28:
- VOLUME SHARE OF TIER TYPE, %, BRAZIL, 2018 - 2030
- Figure 29:
- VOLUME SIZE OF TIER 1 AND 2, MW, BRAZIL, 2018 - 2030
- Figure 30:
- VOLUME SIZE OF TIER 3, MW, BRAZIL, 2018 - 2030
- Figure 31:
- VOLUME SIZE OF TIER 4, MW, BRAZIL, 2018 - 2030
- Figure 32:
- VOLUME OF ABSORPTION, MW, BRAZIL, 2018 - 2030
- Figure 33:
- VOLUME SHARE OF ABSORPTION, %, BRAZIL, 2018 - 2030
- Figure 34:
- VOLUME SIZE OF NON-UTILIZED, MW, BRAZIL, 2018 - 2030
- Figure 35:
- VOLUME OF COLOCATION TYPE, MW, BRAZIL, 2018 - 2030
- Figure 36:
- VOLUME SHARE OF COLOCATION TYPE, %, BRAZIL, 2018 - 2030
- Figure 37:
- VOLUME SIZE OF HYPERSCALE, MW, BRAZIL, 2018 - 2030
- Figure 38:
- VOLUME SIZE OF RETAIL, MW, BRAZIL, 2018 - 2030
- Figure 39:
- VOLUME SIZE OF WHOLESALE, MW, BRAZIL, 2018 - 2030
- Figure 40:
- VOLUME OF END USER, MW, BRAZIL, 2018 - 2030
- Figure 41:
- VOLUME SHARE OF END USER, %, BRAZIL, 2018 - 2030
- Figure 42:
- VOLUME SIZE OF BFSI, MW, BRAZIL, 2018 - 2030
- Figure 43:
- VOLUME SIZE OF CLOUD, MW, BRAZIL, 2018 - 2030
- Figure 44:
- VOLUME SIZE OF E-COMMERCE, MW, BRAZIL, 2018 - 2030
- Figure 45:
- VOLUME SIZE OF GOVERNMENT, MW, BRAZIL, 2018 - 2030
- Figure 46:
- VOLUME SIZE OF MANUFACTURING, MW, BRAZIL, 2018 - 2030
- Figure 47:
- VOLUME SIZE OF MEDIA & ENTERTAINMENT, MW, BRAZIL, 2018 - 2030
- Figure 48:
- VOLUME SIZE OF TELECOM, MW, BRAZIL, 2018 - 2030
- Figure 49:
- VOLUME SIZE OF OTHER END USER, MW, BRAZIL, 2018 - 2030
- Figure 50:
- VOLUME SHARE OF MAJOR PLAYERS, %, BRAZIL
Brazil Data Center Industry Segmentation
Rio de Janeiro, Sao Paulo are covered as segments by Hotspot. Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption.Hotspot | Rio de Janeiro | |||
Sao Paulo | ||||
Rest of Brazil | ||||
Data Center Size | Large | |||
Massive | ||||
Medium | ||||
Mega | ||||
Small | ||||
Tier Type | Tier 1 and 2 | |||
Tier 3 | ||||
Tier 4 | ||||
Absorption | Non-Utilized | |||
Utilized | By Colocation Type | Hyperscale | ||
Retail | ||||
Wholesale | ||||
By End User | BFSI | |||
Cloud | ||||
E-Commerce | ||||
Government | ||||
Manufacturing | ||||
Media & Entertainment | ||||
Telecom | ||||
Other End User |
Market Definition
- IT LOAD CAPACITY - The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipments placed in a rack installed. It is measured in megawatt (MW).
- ABSORPTION RATE - It denotes the extend to which the data center capacity has been leased out. For instance, a 100 MW DC has leased out 75 MW, then absorption rate would be 75%. It is also referred as utilization rate and leased-out capacity.
- RAISED FLOOR SPACE - It is an elevated space build over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assist in having proper wiring and cooling infrastructure. It is measured in square feet (ft^2).
- DATA CENTER SIZE - Data Center Size is segmented based on the raised floor space allocated to the data center facilities. Mega DC - # of Racks must be more than 9000 or RFS (raised floor space) must be more than 225001 Sq. ft; Massive DC - # of Racks must be in between 9000 and 3001 or RFS must be in between 225000 Sq. ft and 75001 Sq. ft; Large DC - # of Racks must be in between 3000 and 801 or RFS must be in between 75000 Sq. ft and 20001 Sq. ft; Medium DC # of Racks must be in between 800 and 201 or RFS must be in between 20000 Sq. ft and 5001 Sq. ft; Small DC - # of Racks must be less than 200 or RFS must be less than 5000 Sq. ft.
- TIER TYPE - According to Uptime Institute the data centers are classified into four tiers based on the proficiencies of redundant equipment of the data center infrastructure. In this segment the data center are segmented as Tier 1,Tier 2, Tier 3 and Tier 4.
- COLOCATION TYPE - The segment is segregated into 3 categories namely Retail, Wholesale and Hyperscale Colocation service. The categorization is done based on the amount of IT load leased out to potential customers. Retail colocation service has leased capacity less than 250 kW; Wholesale colocation services has leased capacity between 251 kW and 4 MW and Hyperscale colocation services has leased capacity more than 4 MW.
- END CONSUMERS - The Data Center Market operates on a B2B basis. BFSI, Government, Cloud Operators, Media and Entertainment, E-Commerce, Telecom and Manufacturing are the major end-consumers in the market studied. The scope only includes colocation service operators catering to the increasing digitalization of the end-user industries.
Keyword | Definition |
---|---|
Rack Unit | Generally referred as U or RU, it is the unit of measurement for the server unit housed in the racks in the data center. 1U is equal to 1.75 inches. |
Rack Density | It defines the amount of power consumed by the equipment and server housed in a rack. It is measured in kilowatt (kW). This factor plays a critical role in data center design and, cooling and power planning. |
IT Load Capacity | The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipment placed in a rack installed. It is measured in megawatt (MW). |
Absorption Rate | It denotes how much of the data center capacity has been leased out. For instance, if a 100 MW DC has leased out 75 MW, then the absorption rate would be 75%. It is also referred to as utilization rate and leased-out capacity. |
Raised Floor Space | It is an elevated space built over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assists in having proper wiring and cooling infrastructure. It is measured in square feet/meter. |
Computer Room Air Conditioner (CRAC) | It is a device used to monitor and maintain the temperature, air circulation, and humidity inside the server room in the data center. |
Aisle | It is the open space between the rows of racks. This open space is critical for maintaining the optimal temperature (20-25 °C) in the server room. There are primarily two aisles inside the server room, a hot aisle and a cold aisle. |
Cold Aisle | It is the aisle wherein the front of the rack faces the aisle. Here, chilled air is directed into the aisle so that it can enter the front of the racks and maintain the temperature. |
Hot Aisle | It is the aisle where the back of the racks faces the aisle. Here, the heat dissipated from the equipment’s in the rack is directed to the outlet vent of the CRAC. |
Critical Load | It includes the servers and other computer equipment whose uptime is critical for data center operation. |
Power Usage Effectiveness (PUE) | It is a metric which defines the efficiency of a data center. It is calculated by: (𝑇𝑜𝑡𝑎𝑙 𝐷𝑎𝑡𝑎 𝐶𝑒𝑛𝑡𝑒𝑟 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛)/(𝑇𝑜𝑡𝑎𝑙 𝐼𝑇 𝐸𝑞𝑢𝑖𝑝𝑚𝑒𝑛𝑡 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛). Further, a data center with a PUE of 1.2-1.5 is considered highly efficient, whereas, a data center with a PUE >2 is considered highly inefficient. |
Redundancy | It is defined as a system design wherein additional component (UPS, generators, CRAC) is added so that in case of power outage, equipment failure, the IT equipment should not be affected. |
Uninterruptible Power Supply (UPS) | It is a device that is connected in series with the utility power supply, storing energy in batteries such that the supply from UPS is continuous to IT equipment even during utility power is snapped. The UPS primarily supports the IT equipment only. |
Generators | Just like UPS, generators are placed in the data center to ensure an uninterrupted power supply, avoiding downtime. Data center facilities have diesel generators and commonly, 48-hour diesel is stored in the facility to prevent disruption. |
N | It denotes the tools and equipment required for a data center to function at full load. Only "N" indicates that there is no backup to the equipment in the event of any failure. |
N+1 | Referred to as 'Need plus one', it denotes the additional equipment setup available to avoid downtime in case of failure. A data center is considered N+1 when there is one additional unit for every 4 components. For instance, if a data center has 4 UPS systems, then for to achieve N+1, an additional UPS system would be required. |
2N | It refers to fully redundant design wherein two independent power distribution system is deployed. Therefore, in the event of a complete failure of one distribution system, the other system will still supply power to the data center. |
In-Row Cooling | It is the cooling design system installed between racks in a row where it draws warm air from the hot aisle and supplies cool air to the cold aisle, thereby maintaining the temperature. |
Tier 1 | Tier classification determines the preparedness of a data center facility to sustain data center operation. A data center is classified as Tier 1 data center when it has a non-redundant (N) power component (UPS, generators), cooling components, and power distribution system (from utility power grids). The Tier 1 data center has an uptime of 99.67% and an annual downtime of <28.8 hours. |
Tier 2 | A data center is classified as Tier 2 data center when it has a redundant power and cooling components (N+1) and a single non-redundant distribution system. Redundant components include extra generators, UPS, chillers, heat rejection equipment, and fuel tanks. The Tier 2 data center has an uptime of 99.74% and an annual downtime of <22 hours. |
Tier 3 | A data center having redundant power and cooling components and multiple power distribution systems is referred to as a Tier 3 data center. The facility is resistant to planned (facility maintenance) and unplanned (power outage, cooling failure) disruption. The Tier 3 data center has an uptime of 99.98% and an annual downtime of <1.6 hours. |
Tier 4 | It is the most tolerant type of data center. A Tier 4 data center has multiple, independent redundant power and cooling components and multiple power distribution paths. All IT equipment are dual powered, making them fault tolerant in case of any disruption, thereby ensuring interrupted operation. The Tier 4 data center has an uptime of 99.74% and an annual downtime of <26.3 minutes. |
Small Data Center | Data center that has floor space area of ≤ 5,000 Sq. ft or the number of racks that can be installed is ≤ 200 is classified as a small data center. |
Medium Data Center | Data center which has floor space area between 5,001-20,000 Sq. ft, or the number of racks that can be installed is between 201-800, is classified as a medium data center. |
Large Data Center | Data center which has floor space area between 20,001-75,000 Sq. ft, or the number of racks that can be installed is between 801-3,000, is classified as a large data center. |
Massive Data Center | Data center which has floor space area between 75,001-225,000 Sq. ft, or the number of racks that can be installed is between 3001-9,000, is classified as a massive data center. |
Mega Data Center | Data center that has a floor space area of ≥ 225,001 Sq. ft or the number of racks that can be installed is ≥ 9001 is classified as a mega data center. |
Retail Colocation | It refers to those customers who have a capacity requirement of 250 kW or less. These services are majorly opted by small and medium enterprises (SMEs). |
Wholesale Colocation | It refers to those customers who have a capacity requirement between 250 kW to 4 MW. These services are majorly opted by medium to large enterprises. |
Hyperscale Colocation | It refers to those customers who have a capacity requirement greater than 4 MW. The hyperscale demand primarily originates from large-scale cloud players, IT companies, BFSI, and OTT players (like Netflix, Hulu, and HBO+). |
Mobile Data Speed | It is the mobile internet speed a user experiences via their smartphones. This speed is primarily dependent on the carrier technology being used in the smartphone. The carrier technologies available in the market are 2G, 3G, 4G, and 5G, where 2G provides the slowest speed while 5G is the fastest. |
Fiber Connectivity Network | It is a network of optical fiber cables deployed across the country, connecting rural and urban regions with high-speed internet connection. It is measured in kilometer (km). |
Data Traffic per Smartphone | It is a measure of average data consumption by a smartphone user in a month. It is measured in gigabyte (GB). |
Broadband Data Speed | It is the internet speed that is supplied over the fixed cable connection. Commonly, copper cable and optic fiber cable are used in both residential and commercial use. Here, optic cable fiber provides faster internet speed than copper cable. |
Submarine Cable | A submarine cable is a fiber optic cable laid down at two or more landing points. Through this cable, communication and internet connectivity between countries across the globe is established. These cables can transmit 100-200 terabits per second (Tbps) from one point to another. |
Carbon Footprint | It is the measure of carbon dioxide generated during the regular operation of a data center. Since, coal, and oil & gas are the primary source of power generation, consumption of this power contributes to carbon emissions. Data center operators are incorporating renewable energy sources to curb the carbon footprint emerging in their facilities. |
Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is not a part of the pricing, and the average selling price (ASP) is kept constant throughout the forecast period for each country.
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms