Latin America Data Center Cooling Market Size (2024 - 2029)

The Latin America Data Center Cooling Market is experiencing significant growth driven by the increasing digitization of data and the rising demand for efficient cooling solutions in data centers. The shift towards liquid air cooling technologies is gaining traction due to their cost-effectiveness and suitability for high-performance processors and GPUs. The deployment of green data centers, supported by regulatory initiatives and sustainability goals, is further propelling the demand for eco-friendly cooling systems. Advanced monitoring systems and analytical tools are being utilized to enhance reliability and efficiency, adapting to dynamic workloads and varying cooling needs. The growing energy consumption in data centers, accelerated by the rise in teleworking and internet activities, is also contributing to the development of sustainable cooling technologies.

Market Size of Latin America Data Center Cooling Industry

Latin America Data Center Cooling Market Summary
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

Latin America Data Center Cooling Market 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)
Air-based Cooling
CRAH
Chiller and Economizer
Cooling Tower (covers direct, indirect & two-stage cooling)
Other Air-based Cooling
Liquid-based Cooling
Immersion Cooling
Direct-to-Chip Cooling
Rear-Door Heat Exchanger
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
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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.

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Latin America Data Center Cooling Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview (Coverage: A Detailed Analysis Of The Current Regional Trends Related To Data Center Cooling Are Included In This Section)

    2. 1.2 Key Cost Considerations for Cooling

      1. 1.2.1 Analysis of the Key Cost Overheads Related to DC Operations With an Eye on DC Cooling

      2. 1.2.2 Key Innovations and Developments in Data Center Cooling

      3. 1.2.3 Key Energy-efficiency Practices Adopted in Data Centers

  2. 2. DATA CENTER COOLING MARKET SEGMENTATION

    1. 2.1 By Cooling Technology (Key trends, market size estimates & projections for the period of 2022-2029 and future outlook)

      1. 2.1.1 Air-based Cooling

        1. 2.1.1.1 CRAH

        2. 2.1.1.2 Chiller and Economizer

        3. 2.1.1.3 Cooling Tower (covers direct, indirect & two-stage cooling)

        4. 2.1.1.4 Other Air-based Cooling

      2. 2.1.2 Liquid-based Cooling

        1. 2.1.2.1 Immersion Cooling

        2. 2.1.2.2 Direct-to-Chip Cooling

        3. 2.1.2.3 Rear-Door Heat Exchanger

    2. 2.2 By End-user Vertical

      1. 2.2.1 IT and Telecom

      2. 2.2.2 Retail and Consumer Goods

      3. 2.2.3 Healthcare

      4. 2.2.4 Media and Entertainment

      5. 2.2.5 Federal and Institutional Agencies

      6. 2.2.6 Other End-user Verticals

    3. 2.3 By Country***

      1. 2.3.1 Mexico

      2. 2.3.2 Brazil

      3. 2.3.3 Chile

Latin America Data Center Cooling Market Size FAQs

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.

In 2024, the Latin America Data Center Cooling Market size is expected to reach USD 0.81 billion.

Latin America Data Center Cooling Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)