Brazil Data Center Power Market Size (2024 - 2029)

The Brazil Data Center Power Market is projected to experience significant growth over the forecast period, driven by increasing demand for cloud computing, government regulations for local data security, and rising investments from domestic players. The market's expansion is further supported by the development of IT load capacity, raised floor space, and the installation of new racks, particularly in major cities like Sao Paulo and Rio de Janeiro. Additionally, the construction of submarine cable systems is enhancing connectivity, contributing to the overall growth of the data center power market in Brazil.

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Market Size of Brazil Data Center Power Industry

Brazil Data Center Power Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 261.5 Million
Market Size (2029) USD 449.30 Million
CAGR (2024 - 2029) 11.50 %
Market Concentration Medium

Major Players

Brazil Data Center Power Market Major Players

*Disclaimer: Major Players sorted in no particular order

Brazil Data Center Power Market Analysis

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 Industry Segmentation

Data center power refers to the power infrastructure, including electrical components and electrical distribution systems, which provide the power necessary to operate and support the devices and servers within the data center. It includes various components and technologies designed to ensure a reliable, uninterruptible power supply for data center IT equipment, including uninterruptible power supplies (UPS), power distribution units (PDU), backup generators, and other power management solutions, tailored to the specific needs of data centers. Data center operators achieve data center redundancy through duplicated components to maintain uninterrupted operations in the event of failure of some components and to maintain uptime during maintenance.

The Brazilian data center power market is segmented by power infrastructure (electrical solution (UPS systems, generators, and power distribution solutions (PDU, switchgear, critical power distribution, transfer switches, remote power panels, and others)) and service) and end user (IT and telecommunication, BFSI, government, media and entertainment, and other end users). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

Power Infrastructure
Electrical Solution
UPS Systems
Generators
Power Distribution Solutions
PDU
Switchgear
Critical Power Distribution
Transfer Switches
Remote Power Panels
Others
Service
End User
IT and Telecommunication
BFSI
Government
Media and Entertainment
Other End Users
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Brazil Data Center Power Market Size Summary

The Brazilian data center power market is poised for significant growth, driven by the increasing demand for cloud computing, stringent government regulations on data security, and substantial investments from local players. The market is characterized by the expansion of cloud service providers, including major names like AWS, Microsoft, and Oracle, which are establishing cloud regions to cater to the burgeoning digital economy. The proliferation of hybrid cloud services and the rising number of internet users in Brazil are further fueling the demand for data storage and processing capabilities. This growth is also reflected in the planned increase in IT load capacity, raised floor space, and the number of racks, particularly in key cities like Sao Paulo and Rio de Janeiro.

The competitive landscape of the Brazilian data center power market is marked by the presence of major players such as ABB Ltd, Caterpillar Inc., Cummins Inc., Eaton Corporation, and Cisco Systems Inc. These companies are actively enhancing their product offerings through strategic partnerships and acquisitions to maintain a competitive edge. Innovations in power distribution units, such as switched PDUs with outlet metering, are gaining traction for their ability to optimize power consumption and improve resource utilization. The market is also witnessing the development of large data center facilities, with significant capacities planned by operators like Scala Data Centers and Ascenty Data Centers. These developments underscore the robust growth trajectory of the market, supported by technological advancements and increasing cloud adoption across various sectors.

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Brazil Data Center Power Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Rising Adoption of Mega Data Centers and Cloud Computing

      2. 1.2.2 Increasing Demand to Reduce Operational Costs

    3. 1.3 Market Restraints

      1. 1.3.1 High Cost of Installation and Maintenance

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Power Infrastructure

      1. 2.1.1 Electrical Solution

        1. 2.1.1.1 UPS Systems

        2. 2.1.1.2 Generators

        3. 2.1.1.3 Power Distribution Solutions

          1. 2.1.1.3.1 PDU

          2. 2.1.1.3.2 Switchgear

          3. 2.1.1.3.3 Critical Power Distribution

          4. 2.1.1.3.4 Transfer Switches

          5. 2.1.1.3.5 Remote Power Panels

          6. 2.1.1.3.6 Others

      2. 2.1.2 Service

    2. 2.2 End User

      1. 2.2.1 IT and Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media and Entertainment

      5. 2.2.5 Other End Users

Brazil Data Center Power Market Size FAQs

The Brazil Data Center Power Market size is expected to reach USD 261.5 million in 2024 and grow at a CAGR of 11.5% to reach USD 449.30 million by 2029.

In 2024, the Brazil Data Center Power Market size is expected to reach USD 261.5 million.

Brazil Data Center Power Market Report Snapshots

Brazil Data Center Power Market Size and Share Analysis - Growth Trends and Forecasts (2024 - 2029)