Market Size of brazil data center Industry
| Icons | Lable | Value |
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Study Period | 2017 - 2029 |
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Market Volume (2024) | 0.74 Thousand MW |
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Market Volume (2029) | 1.21 Thousand MW |
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Largest Share by Tier Type | Tier 3 |
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CAGR (2024 - 2029) | 10.17 % |
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Fastest Growing by Tier Type | Tier 1 and 2 |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
Brazil Data Center Market Analysis
The Brazil Data Center Market size is estimated at 0.74 thousand MW in 2024, and is expected to reach 1.21 thousand MW by 2029, growing at a CAGR of 10.17% during the forecast period (2024-2029).
USD 2,074.66 Million
Market Size in 2024
USD 3,503.7 Million
Market Size in 2029
14.1%
CAGR (2017-2023)
11.0%
CAGR (2024-2029)
IT Load Capacity
742.54 MW
Value, IT Load Capacity, 2024
The IT load capacity of the data center market will have steady growth and is expected to reach 1,205.4 MW by 2029. The quick internet and smartphone technology adoption in various businesses has impacted market demand.
Total Raised Floor Space
Sq. Ft. 2.85 M
Volume, Raised Floor Space, 2024
The total raised floor area of the country is expected to increase to 4.6 million sq. ft by 2029. Increasing e-commerce, media & entertainment, and digital banking, to expand data center market in Brazil.
Installed Racks
142,796
Volume, Installed Racks, 2024
The number of installed racks is expected to reach 231,802 units by 2029. Sao Paulo is expected to house the maximum number of racks by 2029. Data centers are expected to increase by 2029 due to upcoming facilities by Scala Data Center.
# of DC Operators & DC Facilities
30 and 93
Volume, DC Facilities, 2024
There are 93 colocation data center facilities in Brazil. Sao Paulo is the major hotspot in the country. The increasing adoption of the cloud by most businesses is one of the factors boosting the number of data centers in the nation.
Leading Market Player
30%
Market Share, Ascenty (Digital Realty Trust, Inc.), Inc.)
Ascenty has 19 data center facilities in the country. These facilities have a 552,800 sq. ft net rentable capacity and 154.8 MW IT load capacity with average racks of about more than 1400 units.
Tier 3 data centers accounts for majority market share in 2023, Tier-4 is the fastest growing in forecasted period
- The tier 3 data centers' capacity reached 383.3 MW in 2022 and is further projected to register a CAGR of 7.91%, surpassing 699.9 MW by 2029. On the other hand, the tier 4 data center segment is predicted to grow and register a CAGR of 22.12% to reach a capacity of 470 MW by 2029.
- Facilities in tier 1 & 2 are expected to gradually lose their demand and display a decrease in growth in the upcoming years. Tier 1 & 2 facilities are expected to hold a market share of nearly 22.5% by 2029 with minimal growth. This is a result of the prolonged and inconsistent outages. Most users will eventually switch to tier 3 and 4 facilities, holding 36% and 41.5% of market shares, respectively, owing to the increased demand for storing, processing, and analyzing data.
- The BFSI sector of the economy is expanding. The Brazilian Central Bank encourages initiatives to increase the adoption level of open banking. Therefore, e-banking and e-commerce opportunities are increasing in the market. For instance, investment in Brazilian fintech companies increased from USD 546 million in 2018 to USD 1200 million in 2021. The above instances guarantee the growth of data centers in the Brazilian market. This necessitates the construction of wholesale and hyperscale facilities, which have tier 3 and 4 requirements and are driven by the rising demand for e-banking and online transactions.
- Additionally, tier 4 data centers are expected to expand significantly in the future. This is because more businesses are providing cloud-based services, which has caused more companies to construct facilities to provide colocation space with the best technology.
Understand The Key Trends Shaping This Market
