DUBLIN–(BUSINESS WIRE)–The “Brazil Data Center Market – Growth, Trends, COVID-19 Impact, and Forecasts (2021 – 2026)” report has been added to ResearchAndMarkets.com’s offering.
The Brazil Data Center Market was valued at USD 1.76 billion in 2020 and is expected to reach USD 2.69 billion by 2026 at a CAGR of 7.48% over the forecast period from 2021 – 2026.
The growing cloud computing (further fuelled due to COVID-19), increasing penetration of different cloud vendors, government regulations for local data security, and increasing investment by domestic players are significant factors driving the demand for data centers in the country.
There are almost 120 data centers in the country as per Cloudscene. The need for low latency and high performance, along with the recent work from home culture due to nationwide lockdown, is mainly accelerating the adoption of data centers located near customers and businesses to enable hybrid multi-cloud ecosystems.
The Brazilian government is also playing a significant role in the development of local data center infrastructure. According to the government, the country’s General Data Protection Act (LGPD), to be implemented from August 2020, is expected to force many enterprises in the country to migrate their cloud access to private networks and to update their encryption services to extend user data protection.
As companies in Brazil look to gain greater control of their data in the face of upcoming tighter compliance and protection regulations, data center vendors, like IBM, are targeting customers through providing cloud capabilities along with a hybrid multi-cloud environment. However, due to an increase in cyber-attacks and natural disasters, data security is one of the major restraints in the studied market. Along with this, the energy infrastructure needed to provide uninterrupted cloud and data center services is also a significant challenge the country is facing due to growing adoption.
Cloud is one of the fastest-growing markets in the country, and the growing investment in the segment is expanding the scope of the studied market. In July 2019, Ascenty opened four data centers in the greater Sao Paulo area of Brazil. The latest facilities are already fully leased and are located in Jundiai, Paulinia, and Hortolandia. Further, the data centers add 24MW of capacity to Ascenty’s network.
Due to the growing demand for cloud and data center services, companies such as CenturyLink also expanded its capacity in Rio de Janeiro. In August 2020, AMT, a Brazil-based hybrid cloud services provider, selected CenturyLink to meet its increasing demand for cloud services as part of business expansion with management systems provider Sankhya in the country. China-based Huawei is also planning to build cloud computing nodes or availability zones in Brazil, mainly to expand its global footprint in the cloud segment and compete with US competitors like AWS in the region.
Furthermore, the recent COVID-19 has put high pressure on end-user companies to support remote working and are fast-tracking their cloud and digitization journeys.
Companies like IBM and Microsoft claim that this will boost the country’s data center market as data center expansion enables organizations and government institutions to uphold data sovereignty by keeping data within their legal basis.
As Brazil companies look to gain greater control of their data in the face of upcoming tighter compliance and protection regulations, data center vendors, like IBM, are targeting customers by providing cloud capabilities and a hybrid multi-cloud environment.
Competitive Landscape
The Brazil Data Center Market is fragmented, and the competitive rivalry is high. The key players in this market are Arista Networks, Inc., Cisco Systems, Inc., Dell Technologies Inc., IBM Corporation, among others.
Key Topics Covered:
1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Industry Attractiveness – Porter’s Five Forces Analysis
4.3 Market Drivers
4.3.1 Increased Adoption of Cloud and IoT Center
4.3.2 Growing Customer Base for Colocation and Managed Service Providers
4.3.3 Increase in Construction of Green Facilities, Modular Facilities Deployment, and Demand for Edge Datacenter
4.4 Market Restraints
4.4.1 Datacenter Security Challenges & Lack of Skilled Workforce
4.4.2 Higher Procurement Cost for Energy-efficient Infrastructure
4.5 Market Opportunities
5 COVID-19 IMPACT ON CLOUD COMPUTING AND DATA CENTER MARKET
6 MARKET SEGMENTATION
6.1 IT Infrastructure
6.1.1 Server
6.1.2 Storage
6.1.3 Network
6.2 Electrical Infrastructure
6.2.1 UPS Systems
6.2.2 Generators
6.2.3 Transfer Switches and Switchgears
6.2.4 Rack PDU
6.2.5 Other Electrical Infrastructure
6.3 Mechanical Infrastructure
6.3.1 Cooling Systems
6.3.2 Rack
6.3.3 Other Mechanical Infrastructure
6.4 Type
6.4.1 Enterprise Data Centers
6.4.2 Managed Services Data Centers
6.4.3 Colocation Data Centers
6.4.4 Cloud Data Centers
6.5 End -user Industry
6.5.1 BFSI
6.5.2 Telecom and IT
6.5.3 Government
6.5.4 Healthcare
6.5.5 Other End -user Industries
7 COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Arista Networks, Inc.
7.1.2 Cisco Systems, Inc.
7.1.3 Dell Technologies Inc.
7.1.4 Hewlett Packard Enterprise Development LP
7.1.5 Equinix, Inc.
7.1.6 UOL Diveo Inc.
7.1.7 Huawei Technologies Co., Ltd.
7.1.8 IBM Corporation
7.1.9 Lenovo Group Limited
7.1.10 Ascenty Inc.
7.1.11 NetApp, Inc.
7.1.12 Pure Storage, Inc.
7.1.13 Arup Group
7.1.14 Etix Everywhere SA
7.1.15 ABB Ltd.
7.1.16 Digital Colony Management, LLC
8 INVESTMENT ANALYSIS
9 FUTURE OF THE MARKET
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