The South America Data Center Power Market size is estimated at USD 530.5 million in 2024, and is expected to reach USD 845.80 million by 2029, growing at a CAGR of 10.90% during the forecast period (2024-2029).
A country such as Brazil has a strong future for coupling large-scale solar and wind power as hybrid power plants, supporting sustainable data centers in the region. In 2021, the Brazilian energy regulator, ANEEL, approved a new regulation for the operation of hybrid power plants. This, in turn, is expected to provide ample opportunity for Brazil's data center power market in the coming years. The market is also witnessing significant growth in procuring lithium-ion UPS and nickel-zinc systems. Prussian sodium providers also witness strong interest in adopting these battery technologies in data centers.
The upcoming IT load capacity of the South American data center construction market is expected to reach 1,800 MW by 2029.
The region's construction of raised floor area is expected to increase 7.8 million sq. ft by 2029.
The region's total number of racks to be installed is expected to reach 392K units by 2029. Brazil is expected to house the maximum number of racks by 2029.
Close to 60 submarine cable systems are connecting South America, and many are under construction. One submarine cable, Carnival Submarine Network-1 (CSN-1), is estimated to start service in 2025. It stretches over 4500 kilometers and has a landing point in Barranquilla, Colombia.
The South American data center power market is slightly consolidated among the players and has gained a competitive edge in recent years. A few major players are ABB Ltd, Generac Power Systems Inc., Cummins Inc., etc. These major players, with a prominent market share, focus on expanding their regional customer base. These companies leverage strategic collaborative initiatives to increase their market share and profitability.
In June 2023, Legrand introduced the industry’s next generation of intelligent rack power distribution units (PDUs). The Server Technology PRO4X and Raritan PX4 rack PDUs are poised to redefine power management in data centers with exceptional visibility, cutting-edge hardware, and enhanced security.
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