The Brazilian data center rack market reached a volume of over 114,000 units in the previous year, and it is further projected to register a CAGR of 12.5% during the forecast period. 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 Brazil data center market is expected to reach 1,200 MW by 2029.
Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 4.6 million sq. ft by 2029.
Planned Racks: The country's total number of racks to be installed is expected to reach 231,000 units by 2029. Sao Paulo is 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.
The Brazilian Data center racks market is relatively high in terms of competition and has a few players in the market, such as Eaton Corporation, Black Box Corporation, Rittal GMBH & Co.KG, Schneider Electric SE, Vertiv Group Corp. These major players focus on expanding their customer base in the country. These companies leverage strategic collaborative initiatives to increase their market share and profitability. The increase in the data center construction corresponds to increasing demand for the number of racks in the data centers.
In July 2022, Ascenty, a Latin American provider of data centers, opened a new facility in Sao Paulo, Brazil. In the heartland of the state of Sao Paulo, the corporation this week announced the opening of the fifth unit of the Hortolândia complex.
In June 2022, Elea Digital invested USD 20 million in expanding its Brazilian data center. The data center has doubled its capacity from 2.5MW to 5MW and can house up to 200 more racks in the increased 500 sqm (5,380 sq ft) of data center space.
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