Brazil Data Center Market Size

The Brazil Data Center Market is anticipated to experience significant growth, driven by the increasing demand for data storage, processing, and analysis. The market's expansion is particularly notable in tier 3 and tier 4 facilities, which are expected to capture a substantial share due to their capability to meet the rising needs of e-banking and online transactions. The growth in the BFSI sector and the Brazilian Central Bank's initiatives to promote open banking further contribute to this demand. As a result, there is a strong impetus for the development of wholesale and hyperscale data centers, which are essential to accommodate the evolving technological requirements and service offerings in the market.

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Market Size of brazil data center Industry

Brazil Data Center Market Summary
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svg icon Study Period 2017 - 2029
svg icon Market Volume (2024) 0.74 Thousand MW
svg icon Market Volume (2029) 1.21 Thousand MW
svg icon Largest Share by Tier Type Tier 3
svg icon CAGR (2024 - 2029) 10.17 %
svg icon Fastest Growing by Tier Type Tier 1 and 2

Major Players

Brazil Data Center Market Major Players

*Disclaimer: Major Players sorted in no particular order

Key Players

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Brazil Data Center Market Analysis

The Brazil Data Center Market size is estimated at 0.74 thousand MW in 2024, and is expected to reach 1.21 thousand MW by 2029, growing at a CAGR of 10.17%. Further, the market is expected to generate colocation revenue of USD 2,074.7 Million in 2024 and is projected to reach USD 3,503.7 Million by 2029, growing at a CAGR of 11.05% during the forecast period (2024-2029).

USD 2,074.66 Million

Market Size in 2024

USD 3,503.7 Million

Market Size in 2029

14.1%

CAGR (2017-2023)

11.0%

CAGR (2024-2029)

IT Load Capacity

742.54 MW

Value, IT Load Capacity, 2024

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The IT load capacity of the data center market will have steady growth and is expected to reach 1,205.4 MW by 2029. The quick internet and smartphone technology adoption in various businesses has impacted market demand.

Total Raised Floor Space

Sq. Ft. 2.85 M

Volume, Raised Floor Space, 2024

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The total raised floor area of the country is expected to increase to 4.6 million sq. ft by 2029. Increasing e-commerce, media & entertainment, and digital banking, to expand data center market in Brazil.

Installed Racks

142,796

Volume, Installed Racks, 2024

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The number of installed racks is expected to reach 231,802 units by 2029. Sao Paulo is expected to house the maximum number of racks by 2029. Data centers are expected to increase by 2029 due to upcoming facilities by Scala Data Center.

# of DC Operators & DC Facilities

30 and 93

Volume, DC Facilities, 2024

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There are 93 colocation data center facilities in Brazil. Sao Paulo is the major hotspot in the country. The increasing adoption of the cloud by most businesses is one of the factors boosting the number of data centers in the nation.

Leading Market Player

30%

Market Share, Ascenty (Digital Realty Trust, Inc.), Inc.)

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Ascenty has 19 data center facilities in the country. These facilities have a 552,800 sq. ft net rentable capacity and 154.8 MW IT load capacity with average racks of about more than 1400 units.

Tier 3 data centers accounts for majority market share in 2023, Tier-4 is the fastest growing in forecasted period

  • The tier 3 data centers' capacity reached 383.3 MW in 2022 and is further projected to register a CAGR of 7.91%, surpassing 699.9 MW by 2029. On the other hand, the tier 4 data center segment is predicted to grow and register a CAGR of 22.12% to reach a capacity of 470 MW by 2029.
  • Facilities in tier 1 & 2 are expected to gradually lose their demand and display a decrease in growth in the upcoming years. Tier 1 & 2 facilities are expected to hold a market share of nearly 22.5% by 2029 with minimal growth. This is a result of the prolonged and inconsistent outages. Most users will eventually switch to tier 3 and 4 facilities, holding 36% and 41.5% of market shares, respectively, owing to the increased demand for storing, processing, and analyzing data.
  • The BFSI sector of the economy is expanding. The Brazilian Central Bank encourages initiatives to increase the adoption level of open banking. Therefore, e-banking and e-commerce opportunities are increasing in the market. For instance, investment in Brazilian fintech companies increased from USD 546 million in 2018 to USD 1200 million in 2021. The above instances guarantee the growth of data centers in the Brazilian market. This necessitates the construction of wholesale and hyperscale facilities, which have tier 3 and 4 requirements and are driven by the rising demand for e-banking and online transactions.
  • Additionally, tier 4 data centers are expected to expand significantly in the future. This is because more businesses are providing cloud-based services, which has caused more companies to construct facilities to provide colocation space with the best technology.
Brazil Data Center Market

Brazil Data Center Industry Segmentation

Rio de Janeiro, Sao Paulo are covered as segments by Hotspot. Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption.

  • The tier 3 data centers' capacity reached 383.3 MW in 2022 and is further projected to register a CAGR of 7.91%, surpassing 699.9 MW by 2029. On the other hand, the tier 4 data center segment is predicted to grow and register a CAGR of 22.12% to reach a capacity of 470 MW by 2029.
  • Facilities in tier 1 & 2 are expected to gradually lose their demand and display a decrease in growth in the upcoming years. Tier 1 & 2 facilities are expected to hold a market share of nearly 22.5% by 2029 with minimal growth. This is a result of the prolonged and inconsistent outages. Most users will eventually switch to tier 3 and 4 facilities, holding 36% and 41.5% of market shares, respectively, owing to the increased demand for storing, processing, and analyzing data.
  • The BFSI sector of the economy is expanding. The Brazilian Central Bank encourages initiatives to increase the adoption level of open banking. Therefore, e-banking and e-commerce opportunities are increasing in the market. For instance, investment in Brazilian fintech companies increased from USD 546 million in 2018 to USD 1200 million in 2021. The above instances guarantee the growth of data centers in the Brazilian market. This necessitates the construction of wholesale and hyperscale facilities, which have tier 3 and 4 requirements and are driven by the rising demand for e-banking and online transactions.
  • Additionally, tier 4 data centers are expected to expand significantly in the future. This is because more businesses are providing cloud-based services, which has caused more companies to construct facilities to provide colocation space with the best technology.
Hotspot
Rio de Janeiro
Sao Paulo
Rest of Brazil
Data Center Size
Large
Massive
Medium
Mega
Small
Tier Type
Tier 1 and 2
Tier 3
Tier 4
Absorption
Non-Utilized
Utilized
By Colocation Type
Hyperscale
Retail
Wholesale
By End User
BFSI
Cloud
E-Commerce
Government
Manufacturing
Media & Entertainment
Telecom
Other End User
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Brazil Data Center Market Size Summary

The Brazil Data Center Market is experiencing significant growth, driven by the increasing demand for data storage, processing, and analysis. This growth is largely attributed to the expansion of the BFSI sector, the rise of e-banking and e-commerce, and the proliferation of digital payment services. As a result, there is a growing need for advanced data center facilities, particularly those with tier 3 and tier 4 capabilities, which are expected to dominate the market share in the coming years. The shift towards these higher-tier facilities is due to the demand for more reliable and efficient data management solutions, as lower-tier facilities are gradually losing their appeal due to inconsistent service outages.

The market is moderately consolidated, with major players like Ascenty, HostDime Global Corp, Lumen Technologies Inc., ODATA, and Terremark holding significant shares. These companies are actively investing in the construction of new data centers to meet the rising demand. The rapid increase in smartphone users and internet penetration in Brazil further fuels the need for expanded data center capacity. The growing digital usage and consumer behavior changes, such as increased online shopping and digital transactions, necessitate more robust data infrastructure to handle the surge in data traffic. This trend is expected to continue, with substantial investments in data center development across the country.

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Brazil Data Center Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2029 AND ANALYSIS OF GROWTH PROSPECTS)

    1. 1.1 Hotspot

      1. 1.1.1 Rio de Janeiro

      2. 1.1.2 Sao Paulo

      3. 1.1.3 Rest of Brazil

    2. 1.2 Data Center Size

      1. 1.2.1 Large

      2. 1.2.2 Massive

      3. 1.2.3 Medium

      4. 1.2.4 Mega

      5. 1.2.5 Small

    3. 1.3 Tier Type

      1. 1.3.1 Tier 1 and 2

      2. 1.3.2 Tier 3

      3. 1.3.3 Tier 4

    4. 1.4 Absorption

      1. 1.4.1 Non-Utilized

      2. 1.4.2 Utilized

        1. 1.4.2.1 By Colocation Type

          1. 1.4.2.1.1 Hyperscale

          2. 1.4.2.1.2 Retail

          3. 1.4.2.1.3 Wholesale

        2. 1.4.2.2 By End User

          1. 1.4.2.2.1 BFSI

          2. 1.4.2.2.2 Cloud

          3. 1.4.2.2.3 E-Commerce

          4. 1.4.2.2.4 Government

          5. 1.4.2.2.5 Manufacturing

          6. 1.4.2.2.6 Media & Entertainment

          7. 1.4.2.2.7 Telecom

          8. 1.4.2.2.8 Other End User

Brazil Data Center Market Size FAQs

The Brazil Data Center Market is projected to register a CAGR of 10.17% during the forecast period (2024-2029).

Ascenty (Digital Realty Trust Inc.), HostDime Global Corp., Lumen Technologies Inc., ODATA (Patria Investments Ltd) and Terremark (Verizon) are the major companies operating in the Brazil Data Center Market.

Data Centers Market in Brazil Report Snapshots

Brazil Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029