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Broadgroup report predicts space shortage for Latin American Data Centers


In a report recently published, Data Centres Latin America – Competition, Demand Drivers and Growth, ( ) BroadGroup forecasts sustained sector growth averaging 61 percent across 7 key markets by 2014. Yet this is still likely to leave a space shortage following significant enterprise outsourcing. This is the first report that assesses the Latin America marketplace for data centres and identifies key trends across the seven main markets: Argentina, Brazil, Chile, Colombia, Mexico, Panama and Peru with a total of more than 200 data centres (excluding enterprise data centers).

BroadGroup’s report also highlights that although data centre businesses have largely flourished over the past two years, significant infrastructure challenges lies ahead, particularly those resulting from a lack of investment by the utility firms in power transmission, but also a lack of diversity in supply. Research suggests that data centre service evolution is continuing across the region, growth will be particularly intensive in Sao Paulo and Santiago de Chile, where the economies remain more predictable.

The Latin American economies, having endured the last global financial crisis, are gaining new momentum. These economies are not homogeneous but data centers have generally fared well across the key metro areas of Sao Paulo, Buenos Aires, Rio de Janeiro, Santiago de Chile, Mexico DF, Queretaro, Monterrey, Bogota, Lima and Panama. Apart from Argentina, evidence of investment in data center new build is provided. The report suggests there is no threat of over-supply of facilities and in most cases there could be space shortages in the next few years.

Pablo Diantina, research manager for BroadGroup Latin America said, “Latin America is at a crossroads of change for data centers. As enterprises shift to outsourcing, which is a key trend identified in the report research, the facilities available are upgrading but the business models often used are outmoded. Data center expertise is needed to manage this process, and although significant investment is occurring we believe that based on current market growth and facility expansion, there will be a shortage of space in a few years time.”

All of the countries covered in the report feature a detailed taxonomy of data center location by player, service delivery capacity, data centre facility profiles, and total space. The report also covers critical issues of infrastructure and power availability for each country and key player profiles.

BroadGroup is organising the Data Centre Europe Conference, which takes place at Espaces Antipolis, near Nice in France from 22 – 23 April 2010.

Further details can be found at


 Data Centers
 Data Center Business
 Enterprise Outsourcing
 Data Center Management
 Broad Group

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