Market Trends of Brazil Data Center Rack Industry
Cloud segment to hold major share in the market
- Cloud service providers AWS, Microsoft, Oracle, IBM, Tencent, and Huawei are present in Brazil through cloud regions/availability zones. It provides private and public cloud services primarily for financial companies.
- Major factors driving the demand for data centers in the country include the expansion of cloud computing, penetration of various cloud providers, and increasing investment from domestic players.
- Increasing cloud adoption in most businesses is driven by emerging technologies such as artificial intelligence, big data, and blockchain among various end users.
- With the rise of the digital economy and the increasing number of Internet users in Brazil, the need for data storage and processing is increasing. The proliferation of hybrid cloud service providers has increased demand for colocation services and increased rack utilization.
Understand The Key Trends Shaping This Market
Download PDF
Full rack segment to hold major share in the market
- Initially, the focus was limited to data center rack space. Only size and cost were considered in the deployment. Still, data center rack space utilization is likely to increase further as users grow in various verticals such as online banking, telecommunications, media, entertainment, and other high-density applications.
- As businesses generate massive amounts of data every day, they are increasingly relying on data centers to efficiently manage their databases and storage. A major factor driving the use of data center racks, therefore, is the increasing use of fully configured data centers. Moreover, market growth is influenced by rising demand for IT services and investment by large enterprises.
- In Brazil, full racks account for the majority of the market share as the space shortage among various companies is getting worse. A fully racked data center needs to be built to cope with increasing rack capacity due to mobile broadband, the rapid growth of e-commerce, and the rise of big data analytics combined with cloud computing.
- Brazil is embarking on a digital transformation to attract foreign investment. The deployment of 5G networks is driving digital transformation, IoT, smart cities, and the 4th industrial revolution. The increasing adoption and penetration of 5G and the proliferation of smartphones will drive the development of full-rack data center facilities, thereby creating investment opportunities in the market.
- In addition, various industries were under intense pressure to enable remote work due to COVID-19, accelerating the move to the cloud and digitization. This was expected to increase the use of well-equipped data centers in the country.
