Market Size of Brazil Data Center Power Industry
| 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
*Disclaimer: Major Players sorted in no particular order |
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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 | ||||||||||||
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| Service |
| End User | |
| IT and Telecommunication | |
| BFSI | |
| Government | |
| Media and Entertainment | |
| Other End Users |
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.
Brazil Data Center Power Market Size - Table of Contents
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1. Market Dynamics
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Rising Adoption of Mega Data Centers and Cloud Computing
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1.2.2 Increasing Demand to Reduce Operational Costs
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1.3 Market Restraints
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1.3.1 High Cost of Installation and Maintenance
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1.4 Value Chain / Supply Chain Analysis
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1.5 Industry Attractiveness - Porter's Five Forces Analysis
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1.5.1 Threat of New Entrants
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1.5.2 Bargaining Power of Buyers/Consumers
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1.5.3 Bargaining Power of Suppliers
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1.5.4 Threat of Substitute Products
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1.5.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Power Infrastructure
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2.1.1 Electrical Solution
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2.1.1.1 UPS Systems
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2.1.1.2 Generators
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2.1.1.3 Power Distribution Solutions
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2.1.1.3.1 PDU
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2.1.1.3.2 Switchgear
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2.1.1.3.3 Critical Power Distribution
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2.1.1.3.4 Transfer Switches
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2.1.1.3.5 Remote Power Panels
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2.1.1.3.6 Others
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2.1.2 Service
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2.2 End User
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2.2.1 IT and Telecommunication
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2.2.2 BFSI
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2.2.3 Government
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2.2.4 Media and Entertainment
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2.2.5 Other End Users
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Brazil Data Center Power Market Size FAQs
How big is the Brazil Data Center Power Market?
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.
What is the current Brazil Data Center Power Market size?
In 2024, the Brazil Data Center Power Market size is expected to reach USD 261.5 million.
