Market Size of Latin America Data Center Cooling Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 0.81 Billion |
Market Size (2029) | USD 1.91 Billion |
CAGR (2024 - 2029) | 18.50 % |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
Latin America Data Center Cooling Market Analysis
The Latin America Data Center Cooling Market size is estimated at USD 0.81 billion in 2024, and is expected to reach USD 1.91 billion by 2029, growing at a CAGR of 18.5% during the forecast period (2024-2029).
Due to its cost-effectiveness, the shift from traditional air cooling technologies to liquid air cooling technologies is gaining momentum. Technological advances such as the processing of natural languages and applications using cryptocurrencies require high-performance processors and GPUs, making liquid cooling more viable. This highlights the future deployment of environmentally friendly computing technologies in data centers.
- The market examined has been strongly boosted by the growing digitization of data. As the population gets more interconnected and dependent on digital infrastructure, the demand for data centers will increase. Due to the increase in data center construction and growth, effective cold solutions are necessary as soon as possible so that optimal performance can be ensured while avoiding costly failures.
- The deployment of green data centers, which are characterized by eco-friendly buildings, energy-efficient cooling systems, and the integration of renewable energy sources, is an important factor driving the region's data center cooling market. With increased regulatory support and sustainability objectives, the demand for modern eco-friendly cooling systems in data centers is expected to increase further.
- In order to obtain real-time information on cooling performance, data center operators use advanced monitoring systems and analytical tools. This allows for improved reliability and efficiency through proactive maintenance, predictive analytics, and the optimization of the cooling infrastructure.
- Moreover, data centers, dynamic workloads, and variable needs for computer resources are common. When workloads change, the heat load on cooling systems changes. They must adapt and be expandable to accommodate the needs of a data center refrigeration system that can efficiently cool equipment under different load conditions while adapting to them.
- In addition, energy consumption in data centers is rising as a result of the increasing teleworking and Internet activities created by the COVID-19 pandemic. This has led to an increasing rate of developments in sustainable cooling technologies.
Latin America Data Center Cooling Industry Segmentation
Data center cooling refers to the collective equipment, tools, techniques, and processes that ensure an ideal operating temperature within a data center facility. With increasing capacity and higher density, there is an increasing need for energy-efficient cooling of IT equipment.
The Latin American data center cooling market is segmented by cooling technology (air-based cooling [CRAH, chiller and economizer, cooling tower {covers direct, indirect, and two-stage cooling}, and other air-based cooling], liquid-based cooling [immersion cooling, direct-to-chip cooling, rear-door heat exchanger]), end-user vertical (IT and telecom, retail and consumer goods, healthcare, media and entertainment, federal and institutional agencies, and other end-user verticals), and geography (Mexico, Brazil, Chile, and Rest of Latin America). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
By Cooling Technology (Key trends, market size estimates & projections for the period of 2022-2029 and future outlook) | ||||||
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By End-user Vertical | |
IT and Telecom | |
Retail and Consumer Goods | |
Healthcare | |
Media and Entertainment | |
Federal and Institutional Agencies | |
Other End-user Verticals |
By Country*** | |
Mexico | |
Brazil | |
Chile |
Latin America Data Center Cooling Market Size Summary
The Latin America data center cooling market is experiencing significant growth, driven by the increasing digitization of data and the rising demand for data centers. As digital infrastructure becomes more integral to daily life, the need for efficient cooling solutions in data centers is paramount to ensure optimal performance and prevent costly failures. The market is witnessing a shift from traditional air cooling technologies to more advanced liquid cooling systems, which are becoming more viable due to technological advancements and the need for high-performance processing capabilities. The deployment of eco-friendly and energy-efficient cooling systems is also gaining traction, supported by regulatory incentives and sustainability goals. This trend is further fueled by the growing adoption of green data centers, which integrate renewable energy sources and energy-efficient technologies to reduce environmental impact.
The demand for data center cooling solutions is further amplified by the expansion of cloud services, artificial intelligence, and the Internet of Things, which require robust and scalable cooling infrastructures. The rise in teleworking and internet activities, particularly post-COVID-19, has led to increased energy consumption in data centers, prompting developments in sustainable cooling technologies. In Latin America, the rapid adoption of modern cooling technologies, such as direct-to-chip and advanced heat management systems, is being driven by the need to support high-density infrastructures and maximize operational efficiency. The market is highly competitive, with key players focusing on strategic partnerships, acquisitions, and product innovations to offer comprehensive cooling solutions. Recent advancements, such as Stulz's CyberCool CDU and Mitsubishi Heavy Industries' hybrid cooling system, highlight the ongoing innovation in the sector, catering to the evolving needs of hyperscale data centers and high-performance computing applications.
Latin America Data Center Cooling Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview (Coverage: A Detailed Analysis Of The Current Regional Trends Related To Data Center Cooling Are Included In This Section)
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1.2 Key Cost Considerations for Cooling
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1.2.1 Analysis of the Key Cost Overheads Related to DC Operations With an Eye on DC Cooling
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1.2.2 Key Innovations and Developments in Data Center Cooling
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1.2.3 Key Energy-efficiency Practices Adopted in Data Centers
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2. DATA CENTER COOLING MARKET SEGMENTATION
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2.1 By Cooling Technology (Key trends, market size estimates & projections for the period of 2022-2029 and future outlook)
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2.1.1 Air-based Cooling
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2.1.1.1 CRAH
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2.1.1.2 Chiller and Economizer
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2.1.1.3 Cooling Tower (covers direct, indirect & two-stage cooling)
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2.1.1.4 Other Air-based Cooling
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2.1.2 Liquid-based Cooling
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2.1.2.1 Immersion Cooling
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2.1.2.2 Direct-to-Chip Cooling
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2.1.2.3 Rear-Door Heat Exchanger
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2.2 By End-user Vertical
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2.2.1 IT and Telecom
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2.2.2 Retail and Consumer Goods
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2.2.3 Healthcare
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2.2.4 Media and Entertainment
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2.2.5 Federal and Institutional Agencies
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2.2.6 Other End-user Verticals
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2.3 By Country***
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2.3.1 Mexico
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2.3.2 Brazil
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2.3.3 Chile
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Latin America Data Center Cooling Market Size FAQs
How big is the Latin America Data Center Cooling Market?
The Latin America Data Center Cooling Market size is expected to reach USD 0.81 billion in 2024 and grow at a CAGR of 18.5% to reach USD 1.91 billion by 2029.
What is the current Latin America Data Center Cooling Market size?
In 2024, the Latin America Data Center Cooling Market size is expected to reach USD 0.81 billion.