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Brazil Datacenter Market Booms With 24% Forecast Increase Over Next 3 Years

A new report from BroadGroup has forecast significant growth in the Brazilian datacenter market over the next three years.


A new report from BroadGroup has forecast significant growth in the Brazilian datacenter market over the next three years.
In this new assessment of Brazil, the sixth largest economy in the world, the report highlights changes impacting the country market for datacenters - segmented as Hosting/Colocation, Carrier-Owned, IT Outsourcing/Systems Integrators and Enterprise datacenters - market trends and drivers, price movements, energy pricing, a review of current players and their facilities, identifies potential growth opportunities and projects a conservative forecast growth in m2 space of 24% over the next three years.
The report is very timely and reveals a wave of repositioning that is impacting the sector with players adopting more aggressive strategies for construction, the acquisition of infrastructure or the expansion of existing facilities.
The research suggests that the datacenter market is in expansion mode and although confronted by challenges particularly in terms of power supply and an ageing stock of existing facilities, growth in local demand appears set to continue as the forecast GDP growth begins to shift upwards over the next few years.
The Data Center industry in Brazil is presently undergoing a tremendous change process. A significant increase in the occupancy rates over the last 18-24 months has resulted in shortages of available Data Center space in different parts of the country. This is particularly true in Tier 2 metropolitan areas outside the key markets of Sao Paulo and Rio de Janeiro where around 90% of facilities are currently concentrated.
Nevertheless the main story is one of shortages of high quality space and a consequent increase in co-location and hosting prices. Although late entrants, Telcos who still have a large base of corporate and SME clients are also beginning to offer datacenter services. The report suggests further room for expansion in supply and identifies companies it believes will accelerate datacenter growth in the country.
Overall the report provides a timely and comprehensive analysis of the Brazil datacenter market and finds many opportunities lie ahead as consolidation, expansion and new entrants sustain continued growth.


 Latin America

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