Brazil Data Center Power - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

Brazil Data Center Power - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Brazil Data Center Power Market size is estimated at USD 261.5 million in 2024, and is expected to reach USD 449.30 million by 2029, growing at a CAGR of 11.5% during the forecast period (2024-2029).

The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.

Under construction IT load capacity: The upcoming IT load capacity of the Brazilian data center rack market is expected to reach 1,200 MW by 2029. The most important key figure in Brazil's energy balance is the total of 541 billion kWh annual electricity consumption. The average per person is 2,513 kWh.

Under construction raised floor space: The country's construction of raised floor area is expected to increase to 0.4 million sq. ft by 2029.

Planned racks: The country's total number of racks to be installed is expected to reach 231000 units by 2029. Sao Paulo and Rio de Janeiro are expected to house the maximum number of racks by 2029.

Planned submarine cables: There are close to 16 submarine cable systems connecting Brazil, and many are under construction. In August 2023, Blue Marine Telecom, a Brazilian submarine cable company, connected over a dozen oil rigs offshore Rio submarine fiber-optic cables. Blue Marine announced that the ship "Bold Maverick" from China arrived in Rio de Janeiro, and the company will use this vessel to implement the main trunk of the Santos Basin submarine optical network.

Brazil Data Center Power Market Trends

Switched PDU is Anticipated to be the Fastest Growing Segment

• Switched PDUs are important in remote deployments because they allow users to restart servers and restore service without physically visiting the data center site. It also helps users save energy and reduce costs by enabling them to turn off devices that are not in use. In the event of a utility power failure, non-essential loads can be shut down to maximize UPS uptime.
• A switched PDU is a type of smart rack PDU that can turn on or off single outlets or groups of outlets on the PDU. Switched PDUs allow users to control devices and provide power remotely in a specific order. It also allows users to delay the power-on sequence, which eliminates power sags and extends device life.
• Further, large data center facilities are expected to have the highest market share by 2029 due to major operators planning to build facilities with huge capacities during the forecast period. For instance, Scala Data Centers plans to establish a large facility in the country with an IT load capacity of 96 MW. Ascenty Data Centers (Digital Realty) plans to establish seven facilities with a cumulative capacity of 73.3 MW, and NABIAX plans to add 10.7 MW during the forecast period. Considering such developments, the segment is expected to have significant growth in the country.
• Switched PDUs with outlet metering to help users monitor power consumption and available capacity. Easily understand actual power consumption at the device level, allowing users to compare efficiencies, improve capacity planning, increase utilization of existing resources, and allocate costs to specific customers or business units. The above-mentioned instances and benefits of switched PDU would accelerate the growth of the segment during the forecast period.

IT and Telecommunication is Anticipated to be the Largest Segment

• Cloud service providers, like AWS, Microsoft, Oracle, IBM, Tencent, and Huawei, are present in Brazil through cloud regions/availability zones. It provides private and public cloud services primarily for financial companies.
• Major factors driving the demand for data centers in the country include the expansion of cloud computing, penetration of various cloud providers, and increasing investment from domestic players.
• Cloud is an important part of the IT infrastructure. In 2022-23, public cloud spending for infrastructure as a service (IaaS) and platform as a service (PaaS) was expected to witness a growth of 46.5% to USD 3 billion. The private cloud model generated USD 614 million in revenue in 2022-23. Increasing cloud adoption in most businesses is driven by emerging technologies, such as artificial intelligence, big data, and blockchain, among various end users.
• With the rise of the digital economy and the increasing number of internet users in Brazil, the need for data storage and processing is increasing. The proliferation of hybrid cloud service providers has increased demand for colocation services and increased rack utilization.

Brazil Data Center Power Industry Overview

The Brazilian data center power market is competitive and has gained a competitive edge in recent years. In terms of market share, a few major players, such as ABB Ltd, Caterpillar Inc., Cummins Inc., Eaton Corporation, and Cisco Systems Inc., are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage.

• December 2023: Cummins Inc. introduced three new generator models, C1760D5, C1875D5, and C2000D5B, with capacities ranging from 1700 kVA to 2000 kVA. These models are powered by the KTA50 engine series and are designed to meet diverse power needs.
• August 2023: Legrand announced the launch of a new Starline Series-S Track Busway power distribution system that has an IP54 ingress-protection rating, which indicates that it is splashproof and dust-resistant.

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