Latin America Data Center Cooling Market Outlook, 2027

A data center is a centralized physical facility that operates with corporate computers, network, storage and other equipments. The aim is to support and store the data from these entities. Latin America accounts for more than 10% of the total internet users across the world. This is expected to continue growing due to increasing use of smart-phones, tables and laptops across the majorly of population. From the research it has estimated that approximately 59% of the people living in Latin America had internet access in 2018, increased from 36% in 2016. Currently, Chile is accounted to be the country with highest share of people using internet (more than 80%). Owing to this increase in internet use, large organization in the software and internet has implanted strategies to introduce data center infrastructure in Latin America. Increasing demands for data storage has created higher needs for data centers which in turn, are projected to propel the data center cooling market growth.

In Latin America, Skanska has developed eOPTI-TRAX which is a new innovative data center cooling technology. It is able to reduce expenditure from the cooling system processes. As the need for data center grows in Latin America, there will be higher need for more effective cooling solutions. Some major market players in Latin America are HP, IBM and Schneider Electric etc. In addition to that, several governments in Latin America offer tax intensives and dedicated zones for data center infrastructure. For instance, Chile aims to provide intensives for the growth of data centers in Patagonia. On the other hand, Columbia has free trade zones such as Bogota Free Trade Zone to promote data centers and data center cooling solutions.

According to the research report, “Latin America Data Center Cooling Market Outlook, 2027” published by Bonafide Research, data center cooling market is estimated to have CAGR of 10.90% during the forecast period. Rising data center construction in this region has boosted the demands for data center cooling techniques. The investments by the hyper-scale companies and higher adoption of advanced and energy-efficient cooling infrastructure are likely to contribute in obtaining major profits from the vendors. Latin America data center cooling market is segmented into three prominent countries which are Brazil, Argentina and Chile. Among these countries, Brazil is projected to have highest market share during the forecast period. In 2021, Brazil was the major data center investment destination with contribution of nearly 50% in overall investments. In addition, the Latin America market attracted investments from cloud service providers such as Google, AWS, Microsoft, Oracle, IBM and Tencent. In March 2021, Microsoft announced that new zones are available in Sao Paulo as part of its ‘More Brazil’ plan. Microsoft has expanded its cloud services across the region with comprehensive plan to enhance Brazil’s growth, sustainability and employment opportunities.

Rising awareness about renewable energy sources is a significant agenda item for many local governments across the region. For instance, Columbia is processing to increase the production of renewable energy through solar panels that can make up for around 10% of energy from solar power by 2030. According to the report, Latin America data center cooling market is segmented into three cooling types including room-based cooling, row-based cooling and rack-based cooling. Among these types, room-based data center type is rising with more than 45% of market share during the forecast period. On the other hand, rack-based cooling type is projected to increase with prominent CAGR by 2027. Based on the component type, solution segment is projected to have highest market share during the forecast period whereas service segment is projected to have highest CAGR by 2027. Increasing infrastructure of data centers have created higher demands for data center solutions in Latin America region. Latin America data center solution market is further segmented in various sub-types. Air conditioning segment is projected to achieve higher market share by 2027 due to higher adoption across the region. According to the report, Latin America data center cooling market is segmented into various industry verticals including BFSI, IT & Telecom, research & academic, government & defense, retail, healthcare, manufacturing and energy. Among these industries, IT & Telecom segment is projected to lead the market with more than 30% market share due to high emergence of devices with enhanced performance.

Impact of Covid-19 on Latin America Data Center Cooling Market:
The Covid-19 pandemic had enforced companies to support remote working and fast-tracking their cloud as well as digital journey. Sudden outbreak of Covid-19 had led to the implementation of strict lockdown regulations across several countries. These was resulted into temporary shutdown of offices and production plants thereby Covid-19 had negatively impacted the Latin America data center cooling market. However, staying at home has created higher demands for net banking, online classes and work from home scenarios. These facilities have created higher demands for data storage system which in turn will propel the market growth for data center cooling techniques in Latin America region.

Major Companies present in the market:
Vertiv Holdings Co., Schneider Electric S.E., Stulz Gmbh, Mitsubishi Electric Corporation, Daikin Industries Limited, Rittal Gmbh & Co. KG, Nortek Air Solutions LLC, Johnson Controls International PLC, Munters Group AB., Black Box Corporation, Airedale International Air Conditioning Limited, Asetek, Inc., Coolcentric, Degree Controls, Inc., Condair Group AG, Chilldyne Inc., LiquidCool Solutions, CoolIT Systems, Delta Electronics, Alfa Laval Corporate AB, Shenzhen Envicool Technology Co., Ltd, Shanghai shenglin M&E Technology Co., Ltd, GRC (Green Revolution Cooling), Aspen Systems, Fujitsu Limited

Considered in this report:
• Geography: Latin America
• Historic Year: 2016
• Base year: 2021
• Estimated year: 2022
• Forecast year: 2027

Aspects covered in this report:
• Latin America Data Center Cooling market with its value and forecast along with its segments
• Country wise market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report:
• Brazil
• Argentina
• Chile

By Component in the report:
• Solution
• Services

By Product Type in the report:
• Air Conditioning
• Chilling Units
• Cooling Towers
• Economizer
• Liquid Cooling
• Control Systems
• Others

By Service Type in the report:
• Consulting
• Installation & Deployment
• Maintenance & Support

By Industry Verticals in the report:
• BFSI
• IT & Telecom
• Research & Academic
• Government & Defense
• Retail
• Energy
• Manufacturing
• Others

By Cooling Type in the report:
• Room-based Cooling
• Row-based Cooling
• Rack-based Cooling

By Data Center Type in the report:
• Large Data Centers
• Enterprise Data Centers
• Mid-sized Data Centers

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning. Post this we have started doing primary calls to industry people by equally segmenting in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry manufactures, consultants, Key vendors related to Data Center& HVAC solution industry. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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Manmayi Raval

Research Consultant

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