Market Trends of Brazil Data Center Server Industry
Blade Servers to Grow At A Faster Pace In The Coming Years
- Blade servers are often used for huge processing data, but they also produce a lot of heat. These tend to be more expensive than rack or tower servers and require proper humidity and cooling infrastructure to run efficiently without damaging the hardware.
- Blade servers are installed in server bays, not in racks. This structure allows more servers to be installed in a smaller area. For example, a rack may only hold 10 rack servers, but a blade bay can hold 20 blade servers. The blade chassis can still be rack mounted, but more blade servers can fit in the same space compared to rack servers.
- To cater to end-user needs, the top companies are focusing on blade servers in data centers. The growing adoption of technologies such as cloud computing, artificial intelligence (AI), and IT services by businesses is propelling the use of servers in data centers.
- Brazil was the largest Latin American e-commerce market for remote purchases.Since a large portion of the population gained access to the Internet for the first time using a smart device rather than a desktop computer or laptop, the increasing penetration of smart devices, particularly smartphones, over the past ten years has been the driving force behind digital inclusion in Brazil. Brazil's high mobile appeal makes it essential that e-commerce solutions are responsive and mobile-friendly.
- The segment's growing need for data center services is anticipated to be fueled by the soaring demand for online transactions over wireless devices such as smartphones, tablets, and laptops, thus increasing data traffic over these channels.
Understand The Key Trends Shaping This Market
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IT & Telecommunication is The Largest Market In The Country
- According to the GSMA report, Brazil is anticipated to become the first country to exceed 218 million smartphone connections by 2025. This substantial increase in smartphone adoption is expected to significantly boost the demand for 5G network deployments, reflecting the growing need for advanced mobile connectivity solutions.
- Business spending on 5G and edge computing is likely to increase once 5G network services are rolled out, according to ICT trade group Brasscom. Data center investment increased 17% year-over-year to USD 850 million, demonstrating strong demand for core Internet and e-services infrastructure. Blascom also forecasts about USD 86 billion in investment in mobile and connectivity projects from 2021 to 2024.
- In 2022, the Brazilian market for security services was valued at USD 1 billion, with an average growth rate of about 10% Y-o-Y since the pandemic. Sales of security products will surpass USD 860 million in the future, with cloud computing garnering significant interest. As the popularity of cloud computing services, security services, and applications increases, a more sizable colocation of cloud-based data centers is expected to be constructed in Brazil.
- By 2035, the introduction of 5G in Brazil may have an economic impact of USD 1.2 trillion and a productivity boost of USD 3 trillion. Thus, the inclusion of network advancements may increase data generation and lead to the demand for more data processing facilities for analysis and storage.
