South America Data Center Market Size
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Study Period | 2017 - 2029 |
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Market Volume (2024) | 1.15 Thousand MW |
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Market Volume (2029) | 1.81 Thousand MW |
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Largest Share by Tier Type | Tier 3 |
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CAGR (2024 - 2029) | 9.37 % |
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Largest Share by Country | Brazil |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
South America Data Center Market Analysis
The South America Data Center Market size is estimated at 1.15 thousand MW in 2024, and is expected to reach 1.81 thousand MW by 2029, growing at a CAGR of 9.37%. Further, the market is expected to generate colocation revenue of USD 5,009.1 Million in 2024 and is projected to reach USD 8,524.7 Million by 2029, growing at a CAGR of 11.22% during the forecast period (2024-2029).
USD 5,009.07 Million
Market Size in 2024
USD 8,524.6 Million
Market Size in 2029
18.0%
CAGR (2017-2023)
11.2%
CAGR (2024-2029)
IT Load Capacity
1,154 MW
Value, IT Load Capacity, 2024
The IT load capacity of the data center market will have steady growth and is expected to reach 1,806.4 MW by 2029. Digitalization in Chile, Brazil, Argentina and other countries in the region would increase DC market demand.
Total Raised Floor Space
Sq. Ft. 5.09 M
Volume, Raised Floor Space, 2024
The total raised floor area in the region is expected to increase to 7.8 million sq. ft by 2029. Upcoming data centers by Scala Data Centers, Nabiax, and Ascenty Data Centers across various countries in region would drive the market.
Installed Racks
254795
Volume, Installed Racks, 2024
The total number of installed racks is expected to reach 392,072 units by 2029. Brazil is expected to house the maximum number of racks by 2029. Fiber connectivity investments are increasing with data center construction trends.
# of DC Operators & DC Facilities
85 and 206
Volume, DC Facilities, 2024
There are 206 colocation data center facilities in South America. The increasing reliability in power supply, and high demand for data center services from end users are increasing the DC construction region.
Leading Market Player
26.3%
Market Share, Ascenty (Digital Realty Trust, Inc.), Inc.)
Ascenty (Digital Realty Trust Inc.) holds the highest market share of 26.3% compared to its other competitors in the market. The company operates at an IT load capacity of 185.37 MW and is expected to increase its capacity in future.
Tier 3 data centers accounts for majority market share in 2023, Tier-4 is the fastest growing in forecasted period
- The Tier 3 segment currently has a majority share in the South American market due to the major advantage of its features. This tier type has a high redundancy level and multiple paths for power and cooling. These data centers have an uptime of around 99.982%, translating into a downtime of 1.6 hours per year. With the increasing adoption of edge and cloud connectivity, the growth in the Tier 3 segment is expected to increase further.
- Brazil hosts the maximum number of Tier 3 data centers in the region. In 2022, 58 data centers in Brazil had Tier 3 certification. In 2022, Sao Paulo hosted the maximum number of Tier 3 data centers in the country, with a market share of 77.9% and Rio de Janeiro with 27.2%. Among other hotspots (Ceara, Cascavel, Curitiba, Ribeirao Preto, and others), the share was 14.8%. The Tier 3 segment is expected to grow from 649 MW in 2023 to 987.67 MW in 2029, at a projected CAGR of 7.25%.
- The Tier 4 segment is expected to record the highest CAGR of 20.94% during the forecast period. Various developed countries, such as Brazil, are focusing on adopting the Tier 4 certification to be completely fault-tolerant and redundant for every component. This is the major reason why even the developing regions are adopting the Tier 4 type. Major players in the market are expected to expand their facilities, which include Scala Data Centers (366 MW) with 17 facilities and ODATA (24 MW) with one facility during the forecast period.
- The Tier 1 & 2 segment is expected to showcase significant growth in developing countries, with a low GDP rate index in under-developed countries with a high expense burden. These countries include Bolivia, Paraguay, Suriname, and Ecuador, which have the majority of SMEs that cannot afford Tier 3 and 4 facilities.
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Brazil holds the major share and expected to continue the dominance during the study period
- Brazil and Chile hold the largest shares in the South American data center market. The Brazilian government provides incentives through the Regime Especial de Tributação do Programa Nacional de Banda Larga (REPNBL) program, which includes incentives for purchasing infrastructure that help improve colocation services in the country. Brazil has witnessed an absolute growth of 40% in investments from the 2021 values due to investments from colocation providers such as Ascenty, Scala Data Centers, and ODATA and telecom operators such as GlobeNet Telecom, Ava Telecom, and Embratel. Sao Paulo, Brazil's significant financial capital, serves as the primary data center hub. Other cities, such as Rio de Janeiro and Fortaleza, are major investment locations in Brazil.
- Chile has competitive energy prices, primarily fueled by plans to take advantage of its natural renewable energy generation potential over the coming years. Energy costs have dropped to one-third of what they were five years ago, mainly based on renewable energy that now makes up 46% of the total produced. Chile traditionally has some of the region's best telecommunications infrastructure, and two major fiber projects are underway to ensure it will have a fully redundant fiber backbone. These include the state-funded Fibra Optica Austral (FOA) submarine cable connecting the deep south and Gtd's 3,500 km north-south submarine cable. In 2022, colocation operators, such as Scala Data Centers, ODATA, Ascenty (Digital Realty), and EdgeConneX, were the major investors in the Chilean data center market.
- In Argentina, Buenos Aires is the major investment destination, with the identified third-party facilities in the city contributing to over 90% of the existing power capacity. Most existing data centers are smaller facilities built over a limited area. The International Renewable Energy Agency (IRENA) stated that renewable energy contributed to around 33% of the overall electricity capacity in 2020 in Argentina, and the country aims to generate 20% of the electricity via renewable sources by 2025. The country aims to be one of the largest data center hubs in the coming time period.
South America Data Center Market Trends
The high internet and smartphone technology adoption by various businesses and growing digital usage across the region drives the market demand
- In 2020, mobile technologies and services accounted for 7.1% of GDP in Latin America – a contribution that amounted to more than USD 340 billion of economic value added. The mobile ecosystem also supported more than 1.6 million jobs (directly and indirectly). By 2025, the economic contribution of the Latin American mobile ecosystem will grow by more than USD 30 billion as countries in the region increasingly benefit from the improvements in productivity and efficiency brought about by the increased take-up of mobile services.
- Digital usage is expanding rapidly in Brazil. The high internet and smartphone technology adoption by various businesses has impacted consumer behavior. More people in the country can now purchase smartphones, leading to a growing number of smartphone users. In May 2020, most shopping apps downloaded in South America were developed in Brazil, which stood out with approximately 44 million app downloads in this category.
- In Chile, e-commerce is expanding steadily. Chile's average annual revenue per paying user amounted to USD 913 in 2020. Most cross-border e-commerce purchases by Chilean shoppers stand at 69%. As a result, vast amounts of data have been created, increasing the demand for data centers nationwide. In South America, the transition to 5G is progressing rapidly, driven by the continued rollout of new networks, the expansion of the device ecosystem, and the development of new applications for consumers and enterprises.
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People across the region increasingly reliant on the internet for banking, business, & telecommunication services and increasing FTTH subscribers across the region drives the market growth
- In South America and the Caribbean, less than 50% of the population has access to fixed broadband internet, and only 9.9% has fiber internet access. Many rural areas have patchy network coverage due to expensive network equipment. Chile has set the standard for other countries to follow in fixed broadband. Chile has the fastest data download speeds in Latin America. With an average rate of 219 Mbps, Chile is well ahead of the region's largest economy, Brazil, where internet download speeds average 95.95 Mbps.
- The Brazilian population became increasingly reliant on the internet for banking, business, telecommunication, and leisure during the COVID-19 pandemic. However, the country ranked 49th globally for fixed broadband speed and 74th for mobile speed as of April 2021. This shows that access to the internet and broadband speed are growing rapidly, meaning data centers will benefit from faster data transfer, higher storage rates, and lower latency.
- Latin America's fiber-to-the-home (FTTH) market was set to register approximately 105 million homes with fiber in 2022, an increase of 36%, or 28 million new premises, compared with the end of 2021. Latin America now has a fiber penetration rate of nearly 61%. In terms of investment, in 2021, to penetrate the fixed broadband (FTTH) market, Chilean mobile operator WOM teamed with digital enablement and revenue management software company Aleppo.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- 4G’s growth and 5G standalone (SA) deployments, growing critical IoT capabilities, and increasing 5G mobile subscriptions drives the market growth
- Increasing share of fiber-to-the-premises households, and investments in fiber rollouts drives the market demand
- Quick adoption of 5G network, availability of commercial 5G in the 3.5GHz band, and growing internet population drives the market growth
South America Data Center Industry Overview
The South America Data Center Market is fragmented, with the top five companies occupying 30.95%. The major players in this market are Ascenty (Digital Realty Trust Inc.), Lumen Technologies Inc., Scala Data Centers, SONDA SA and Terremark (Verizon) (sorted alphabetically).
South America Data Center Market Leaders
Ascenty (Digital Realty Trust Inc.)
Lumen Technologies Inc.
Scala Data Centers
SONDA SA
Terremark (Verizon)
Other important companies include EdgeUno Inc., Equinix Inc., GTD Grupo Teleductos SA, HostDime Global Corp., NABIAX, ODATA (Patria Investments Ltd), Quantico Data Center.
*Disclaimer: Major Players sorted in alphabetical order.
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South America Data Center Market News
- November 2022: Ascenty will invest R$1.5 billion (US$290 million) in the construction of five new data centers in South America. The locations of the data centers will be Brazil, Chile, and Colombia.
- October 2022: In So Paulo, Brazil, Equinix opened a brand-new hyperscale data center. The new SP5x facility, which is situated in Santana de Parnaba close to the organization's SP3 IBX data center, has a capacity of roughly 5MW in its initial phase. After all, phases are finished, the data center should have a total capacity of 14.4MW. According to the business, it plans to spend a total of $116.4 million on the facility.
- August 2022: In Brazil's So Paulo, Scala Data Centers has opened a new data center. At the business' Tamboré campus in So Paulo's Barueri neighborhood, SP4 is now operational. With 6MW of IT power capacity in use, the site is operational in its initial stage. The second stage of SP4 is anticipated to begin operations in September, adding 6MW of IT capacity.
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We provide a complimentary and exhaustive set of data points on the country and regional level metrics that present the fundamental structure of the industry. Presented in the form of 50+ free charts, the sections cover difficult to find data on various countries on smartphone users, data traffic per smartphone, mobile and broadband data speed, fiber connectivity network, and submarine cables.
South America Data Center Market Report - Table of Contents
1. EXECUTIVE SUMMARY & KEY FINDINGS
2. REPORT OFFERS
3. INTRODUCTION
- 3.1 Study Assumptions & Market Definition
- 3.2 Scope of the Study
- 3.3 Research Methodology
4. MARKET OUTLOOK
- 4.1 It Load Capacity
- 4.2 Raised Floor Space
- 4.3 Colocation Revenue
- 4.4 Installed Racks
- 4.5 Rack Space Utilization
- 4.6 Submarine Cable
5. Key Industry Trends
- 5.1 Smartphone Users
- 5.2 Data Traffic Per Smartphone
- 5.3 Mobile Data Speed
- 5.4 Broadband Data Speed
- 5.5 Fiber Connectivity Network
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5.6 Regulatory Framework
- 5.6.1 Brazil
- 5.6.2 Chile
- 5.7 Value Chain & Distribution Channel Analysis
6. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2029 AND ANALYSIS OF GROWTH PROSPECTS)
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6.1 Data Center Size
- 6.1.1 Large
- 6.1.2 Massive
- 6.1.3 Medium
- 6.1.4 Mega
- 6.1.5 Small
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6.2 Tier Type
- 6.2.1 Tier 1 and 2
- 6.2.2 Tier 3
- 6.2.3 Tier 4
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6.3 Absorption
- 6.3.1 Non-Utilized
- 6.3.2 Utilized
- 6.3.2.1 By Colocation Type
- 6.3.2.1.1 Hyperscale
- 6.3.2.1.2 Retail
- 6.3.2.1.3 Wholesale
- 6.3.2.2 By End User
- 6.3.2.2.1 BFSI
- 6.3.2.2.2 Cloud
- 6.3.2.2.3 E-Commerce
- 6.3.2.2.4 Government
- 6.3.2.2.5 Manufacturing
- 6.3.2.2.6 Media & Entertainment
- 6.3.2.2.7 Telecom
- 6.3.2.2.8 Other End User
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6.4 Country
- 6.4.1 Brazil
- 6.4.2 Chile
- 6.4.3 Rest of South America
7. COMPETITIVE LANDSCAPE
- 7.1 Market Share Analysis
- 7.2 Company Landscape
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7.3 Company Profiles (includes Global Level Overview, Market Level Overview, Core Business Segments, Financials, Headcount, Key Information, Market Rank, Market Share, Products and Services, and Analysis of Recent Developments).
- 7.3.1 Ascenty (Digital Realty Trust Inc.)
- 7.3.2 EdgeUno Inc.
- 7.3.3 Equinix Inc.
- 7.3.4 GTD Grupo Teleductos SA
- 7.3.5 HostDime Global Corp.
- 7.3.6 Lumen Technologies Inc.
- 7.3.7 NABIAX
- 7.3.8 ODATA (Patria Investments Ltd)
- 7.3.9 Quantico Data Center
- 7.3.10 Scala Data Centers
- 7.3.11 SONDA SA
- 7.3.12 Terremark (Verizon)
- 7.4 LIST OF COMPANIES STUDIED
8. KEY STRATEGIC QUESTIONS FOR DATA CENTER CEOS
9. APPENDIX
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9.1 Global Overview
- 9.1.1 Overview
- 9.1.2 Porter’s Five Forces Framework
- 9.1.3 Global Value Chain Analysis
- 9.1.4 Global Market Size and DROs
- 9.2 Sources & References
- 9.3 List of Tables & Figures
- 9.4 Primary Insights
- 9.5 Data Pack
- 9.6 Glossary of Terms
List of Tables & Figures
- Figure 1:
- VOLUME OF IT LOAD CAPACITY, MW, SOUTH AMERICA, 2017 - 2029
- Figure 2:
- VOLUME OF RAISED FLOOR AREA, SQ.FT. ('000), SOUTH AMERICA, 2017 - 2029
- Figure 3:
- VALUE OF COLOCATION REVENUE, USD MILLION, SOUTH AMERICA, 2017 - 2029
- Figure 4:
- VOLUME OF INSTALLED RACKS, NUMBER, SOUTH AMERICA, 2017 - 2029
- Figure 5:
- RACK SPACE UTILIZATION, %, SOUTH AMERICA, 2017 - 2029
- Figure 6:
- COUNT OF SMARTPHONE USERS, IN MILLION, SOUTH AMERICA, 2017 - 2029
- Figure 7:
- DATA TRAFFIC PER SMARTPHONE, GB, SOUTH AMERICA, 2017 - 2029
- Figure 8:
- AVERAGE MOBILE DATA SPEED, MBPS, SOUTH AMERICA, 2017 - 2029
- Figure 9:
- AVERAGE BROADBAND SPEED, MBPS, SOUTH AMERICA, 2017 - 2029
- Figure 10:
- LENGTH OF FIBER CONNECTIVITY NETWORK, KILOMETER, SOUTH AMERICA, 2017 - 2029
- Figure 11:
- VOLUME OF IT LOAD CAPACITY, MW, SOUTH AMERICA, 2017 - 2029
- Figure 12:
- VOLUME OF DATA CENTER SIZE, MW, SOUTH AMERICA, 2017 - 2029
- Figure 13:
- VOLUME SHARE OF DATA CENTER SIZE, %, SOUTH AMERICA, 2017 - 2029
- Figure 14:
- VOLUME SIZE OF LARGE, MW, SOUTH AMERICA, 2017 - 2029
- Figure 15:
- VOLUME SHARE OF LARGE, MW, DATA CENTER SIZE, %, SOUTH AMERICA, 2017 - 2029
- Figure 16:
- VOLUME SIZE OF MASSIVE, MW, SOUTH AMERICA, 2017 - 2029
- Figure 17:
- VOLUME SHARE OF MASSIVE, MW, DATA CENTER SIZE, %, SOUTH AMERICA, 2017 - 2029
- Figure 18:
- VOLUME SIZE OF MEDIUM, MW, SOUTH AMERICA, 2017 - 2029
- Figure 19:
- VOLUME SHARE OF MEDIUM, MW, DATA CENTER SIZE, %, SOUTH AMERICA, 2017 - 2029
- Figure 20:
- VOLUME SIZE OF MEGA, MW, SOUTH AMERICA, 2017 - 2029
- Figure 21:
- VOLUME SHARE OF MEGA, MW, DATA CENTER SIZE, %, SOUTH AMERICA, 2017 - 2029
- Figure 22:
- VOLUME SIZE OF SMALL, MW, SOUTH AMERICA, 2017 - 2029
- Figure 23:
- VOLUME SHARE OF SMALL, MW, DATA CENTER SIZE, %, SOUTH AMERICA, 2017 - 2029
- Figure 24:
- VOLUME OF TIER TYPE, MW, SOUTH AMERICA, 2017 - 2029
- Figure 25:
- VOLUME SHARE OF TIER TYPE, %, SOUTH AMERICA, 2017 - 2029
- Figure 26:
- VOLUME SIZE OF TIER 1 AND 2, MW, SOUTH AMERICA, 2017 - 2029
- Figure 27:
- VOLUME SHARE OF TIER 1 AND 2, MW, TIER TYPE, %, SOUTH AMERICA, 2017 - 2029
- Figure 28:
- VOLUME SIZE OF TIER 3, MW, SOUTH AMERICA, 2017 - 2029
- Figure 29:
- VOLUME SHARE OF TIER 3, MW, TIER TYPE, %, SOUTH AMERICA, 2017 - 2029
- Figure 30:
- VOLUME SIZE OF TIER 4, MW, SOUTH AMERICA, 2017 - 2029
- Figure 31:
- VOLUME SHARE OF TIER 4, MW, TIER TYPE, %, SOUTH AMERICA, 2017 - 2029
- Figure 32:
- VOLUME OF ABSORPTION, MW, SOUTH AMERICA, 2017 - 2029
- Figure 33:
- VOLUME SHARE OF ABSORPTION, %, SOUTH AMERICA, 2017 - 2029
- Figure 34:
- VOLUME SIZE OF NON-UTILIZED, MW, SOUTH AMERICA, 2017 - 2029
- Figure 35:
- VOLUME SHARE OF NON-UTILIZED, MW, ABSORPTION, %, SOUTH AMERICA, 2017 - 2029
- Figure 36:
- VOLUME OF COLOCATION TYPE, MW, SOUTH AMERICA, 2017 - 2029
- Figure 37:
- VOLUME SHARE OF COLOCATION TYPE, %, SOUTH AMERICA, 2017 - 2029
- Figure 38:
- VOLUME SIZE OF HYPERSCALE, MW, SOUTH AMERICA, 2017 - 2029
- Figure 39:
- VOLUME SHARE OF HYPERSCALE, MW, COLOCATION TYPE, %, SOUTH AMERICA, 2017 - 2029
- Figure 40:
- VOLUME SIZE OF RETAIL, MW, SOUTH AMERICA, 2017 - 2029
- Figure 41:
- VOLUME SHARE OF RETAIL, MW, COLOCATION TYPE, %, SOUTH AMERICA, 2017 - 2029
- Figure 42:
- VOLUME SIZE OF WHOLESALE, MW, SOUTH AMERICA, 2017 - 2029
- Figure 43:
- VOLUME SHARE OF WHOLESALE, MW, COLOCATION TYPE, %, SOUTH AMERICA, 2017 - 2029
- Figure 44:
- VOLUME OF END USER, MW, SOUTH AMERICA, 2017 - 2029
- Figure 45:
- VOLUME SHARE OF END USER, %, SOUTH AMERICA, 2017 - 2029
- Figure 46:
- VOLUME SIZE OF BFSI, MW, SOUTH AMERICA, 2017 - 2029
- Figure 47:
- VOLUME SIZE OF CLOUD, MW, SOUTH AMERICA, 2017 - 2029
- Figure 48:
- VOLUME SIZE OF E-COMMERCE, MW, SOUTH AMERICA, 2017 - 2029
- Figure 49:
- VOLUME SIZE OF GOVERNMENT, MW, SOUTH AMERICA, 2017 - 2029
- Figure 50:
- VOLUME SIZE OF MANUFACTURING, MW, SOUTH AMERICA, 2017 - 2029
- Figure 51:
- VOLUME SIZE OF MEDIA & ENTERTAINMENT, MW, SOUTH AMERICA, 2017 - 2029
- Figure 52:
- VOLUME SIZE OF TELECOM, MW, SOUTH AMERICA, 2017 - 2029
- Figure 53:
- VOLUME SIZE OF OTHER END USER, MW, SOUTH AMERICA, 2017 - 2029
- Figure 54:
- VOLUME OF COUNTRY, MW, SOUTH AMERICA, 2017 - 2029
- Figure 55:
- VOLUME SHARE OF COUNTRY, %, SOUTH AMERICA, 2017 - 2029
- Figure 56:
- VOLUME SIZE OF BRAZIL, MW, BRAZIL, 2017 - 2029
- Figure 57:
- VOLUME SIZE OF CHILE, MW, CHILE, 2017 - 2029
- Figure 58:
- VOLUME SIZE OF REST OF SOUTH AMERICA, MW, REST OF SOUTH AMERICA, 2017 - 2029
- Figure 59:
- VOLUME SHARE OF MAJOR PLAYERS, %, SOUTH AMERICA, 2022
South America Data Center Industry Segmentation
Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption. Brazil, Chile are covered as segments by Country.
- The Tier 3 segment currently has a majority share in the South American market due to the major advantage of its features. This tier type has a high redundancy level and multiple paths for power and cooling. These data centers have an uptime of around 99.982%, translating into a downtime of 1.6 hours per year. With the increasing adoption of edge and cloud connectivity, the growth in the Tier 3 segment is expected to increase further.
- Brazil hosts the maximum number of Tier 3 data centers in the region. In 2022, 58 data centers in Brazil had Tier 3 certification. In 2022, Sao Paulo hosted the maximum number of Tier 3 data centers in the country, with a market share of 77.9% and Rio de Janeiro with 27.2%. Among other hotspots (Ceara, Cascavel, Curitiba, Ribeirao Preto, and others), the share was 14.8%. The Tier 3 segment is expected to grow from 649 MW in 2023 to 987.67 MW in 2029, at a projected CAGR of 7.25%.
- The Tier 4 segment is expected to record the highest CAGR of 20.94% during the forecast period. Various developed countries, such as Brazil, are focusing on adopting the Tier 4 certification to be completely fault-tolerant and redundant for every component. This is the major reason why even the developing regions are adopting the Tier 4 type. Major players in the market are expected to expand their facilities, which include Scala Data Centers (366 MW) with 17 facilities and ODATA (24 MW) with one facility during the forecast period.
- The Tier 1 & 2 segment is expected to showcase significant growth in developing countries, with a low GDP rate index in under-developed countries with a high expense burden. These countries include Bolivia, Paraguay, Suriname, and Ecuador, which have the majority of SMEs that cannot afford Tier 3 and 4 facilities.
| Data Center Size | Large | ||
| Massive | |||
| Medium | |||
| Mega | |||
| Small | |||
| Tier Type | Tier 1 and 2 | ||
| Tier 3 | |||
| Tier 4 | |||
| Absorption | Non-Utilized | ||
| Utilized | By Colocation Type | Hyperscale | |
| Retail | |||
| Wholesale | |||
| Utilized | By End User | BFSI | |
| Cloud | |||
| E-Commerce | |||
| Government | |||
| Manufacturing | |||
| Media & Entertainment | |||
| Telecom | |||
| Other End User | |||
| Country | Brazil | ||
| Chile | |||
| Rest of South America |
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Market Definition
- IT LOAD CAPACITY - The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipments placed in a rack installed. It is measured in megawatt (MW).
- ABSORPTION RATE - It denotes the extend to which the data center capacity has been leased out. For instance, a 100 MW DC has leased out 75 MW, then absorption rate would be 75%. It is also referred as utilization rate and leased-out capacity.
- RAISED FLOOR SPACE - It is an elevated space build over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assist in having proper wiring and cooling infrastructure. It is measured in square feet (ft^2).
- DATA CENTER SIZE - Data Center Size is segmented based on the raised floor space allocated to the data center facilities. Mega DC - # of Racks must be more than 9000 or RFS (raised floor space) must be more than 225001 Sq. ft; Massive DC - # of Racks must be in between 9000 and 3001 or RFS must be in between 225000 Sq. ft and 75001 Sq. ft; Large DC - # of Racks must be in between 3000 and 801 or RFS must be in between 75000 Sq. ft and 20001 Sq. ft; Medium DC # of Racks must be in between 800 and 201 or RFS must be in between 20000 Sq. ft and 5001 Sq. ft; Small DC - # of Racks must be less than 200 or RFS must be less than 5000 Sq. ft.
- TIER TYPE - According to Uptime Institute the data centers are classified into four tiers based on the proficiencies of redundant equipment of the data center infrastructure. In this segment the data center are segmented as Tier 1,Tier 2, Tier 3 and Tier 4.
- COLOCATION TYPE - The segment is segregated into 3 categories namely Retail, Wholesale and Hyperscale Colocation service. The categorization is done based on the amount of IT load leased out to potential customers. Retail colocation service has leased capacity less than 250 kW; Wholesale colocation services has leased capacity between 251 kW and 4 MW and Hyperscale colocation services has leased capacity more than 4 MW.
- END CONSUMERS - The Data Center Market operates on a B2B basis. BFSI, Government, Cloud Operators, Media and Entertainment, E-Commerce, Telecom and Manufacturing are the major end-consumers in the market studied. The scope only includes colocation service operators catering to the increasing digitalization of the end-user industries.
| Keyword | Definition |
|---|---|
| Rack Unit | Generally referred as U or RU, it is the unit of measurement for the server unit housed in the racks in the data center. 1U is equal to 1.75 inches. |
| Rack Density | It defines the amount of power consumed by the equipment and server housed in a rack. It is measured in kilowatt (kW). This factor plays a critical role in data center design and, cooling and power planning. |
| IT Load Capacity | The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipment placed in a rack installed. It is measured in megawatt (MW). |
| Absorption Rate | It denotes how much of the data center capacity has been leased out. For instance, if a 100 MW DC has leased out 75 MW, then the absorption rate would be 75%. It is also referred to as utilization rate and leased-out capacity. |
| Raised Floor Space | It is an elevated space built over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assists in having proper wiring and cooling infrastructure. It is measured in square feet/meter. |
| Computer Room Air Conditioner (CRAC) | It is a device used to monitor and maintain the temperature, air circulation, and humidity inside the server room in the data center. |
| Aisle | It is the open space between the rows of racks. This open space is critical for maintaining the optimal temperature (20-25 °C) in the server room. There are primarily two aisles inside the server room, a hot aisle and a cold aisle. |
| Cold Aisle | It is the aisle wherein the front of the rack faces the aisle. Here, chilled air is directed into the aisle so that it can enter the front of the racks and maintain the temperature. |
| Hot Aisle | It is the aisle where the back of the racks faces the aisle. Here, the heat dissipated from the equipment’s in the rack is directed to the outlet vent of the CRAC. |
| Critical Load | It includes the servers and other computer equipment whose uptime is critical for data center operation. |
| Power Usage Effectiveness (PUE) | It is a metric which defines the efficiency of a data center. It is calculated by: (𝑇𝑜𝑡𝑎𝑙 𝐷𝑎𝑡𝑎 𝐶𝑒𝑛𝑡𝑒𝑟 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛)/(𝑇𝑜𝑡𝑎𝑙 𝐼𝑇 𝐸𝑞𝑢𝑖𝑝𝑚𝑒𝑛𝑡 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛). Further, a data center with a PUE of 1.2-1.5 is considered highly efficient, whereas, a data center with a PUE >2 is considered highly inefficient. |
| Redundancy | It is defined as a system design wherein additional component (UPS, generators, CRAC) is added so that in case of power outage, equipment failure, the IT equipment should not be affected. |
| Uninterruptible Power Supply (UPS) | It is a device that is connected in series with the utility power supply, storing energy in batteries such that the supply from UPS is continuous to IT equipment even during utility power is snapped. The UPS primarily supports the IT equipment only. |
| Generators | Just like UPS, generators are placed in the data center to ensure an uninterrupted power supply, avoiding downtime. Data center facilities have diesel generators and commonly, 48-hour diesel is stored in the facility to prevent disruption. |
| N | It denotes the tools and equipment required for a data center to function at full load. Only "N" indicates that there is no backup to the equipment in the event of any failure. |
| N+1 | Referred to as 'Need plus one', it denotes the additional equipment setup available to avoid downtime in case of failure. A data center is considered N+1 when there is one additional unit for every 4 components. For instance, if a data center has 4 UPS systems, then for to achieve N+1, an additional UPS system would be required. |
| 2N | It refers to fully redundant design wherein two independent power distribution system is deployed. Therefore, in the event of a complete failure of one distribution system, the other system will still supply power to the data center. |
| In-Row Cooling | It is the cooling design system installed between racks in a row where it draws warm air from the hot aisle and supplies cool air to the cold aisle, thereby maintaining the temperature. |
| Tier 1 | Tier classification determines the preparedness of a data center facility to sustain data center operation. A data center is classified as Tier 1 data center when it has a non-redundant (N) power component (UPS, generators), cooling components, and power distribution system (from utility power grids). The Tier 1 data center has an uptime of 99.67% and an annual downtime of <28.8 hours. |
| Tier 2 | A data center is classified as Tier 2 data center when it has a redundant power and cooling components (N+1) and a single non-redundant distribution system. Redundant components include extra generators, UPS, chillers, heat rejection equipment, and fuel tanks. The Tier 2 data center has an uptime of 99.74% and an annual downtime of <22 hours. |
| Tier 3 | A data center having redundant power and cooling components and multiple power distribution systems is referred to as a Tier 3 data center. The facility is resistant to planned (facility maintenance) and unplanned (power outage, cooling failure) disruption. The Tier 3 data center has an uptime of 99.98% and an annual downtime of <1.6 hours. |
| Tier 4 | It is the most tolerant type of data center. A Tier 4 data center has multiple, independent redundant power and cooling components and multiple power distribution paths. All IT equipment are dual powered, making them fault tolerant in case of any disruption, thereby ensuring interrupted operation. The Tier 4 data center has an uptime of 99.74% and an annual downtime of <26.3 minutes. |
| Small Data Center | Data center that has floor space area of ≤ 5,000 Sq. ft or the number of racks that can be installed is ≤ 200 is classified as a small data center. |
| Medium Data Center | Data center which has floor space area between 5,001-20,000 Sq. ft, or the number of racks that can be installed is between 201-800, is classified as a medium data center. |
| Large Data Center | Data center which has floor space area between 20,001-75,000 Sq. ft, or the number of racks that can be installed is between 801-3,000, is classified as a large data center. |
| Massive Data Center | Data center which has floor space area between 75,001-225,000 Sq. ft, or the number of racks that can be installed is between 3001-9,000, is classified as a massive data center. |
| Mega Data Center | Data center that has a floor space area of ≥ 225,001 Sq. ft or the number of racks that can be installed is ≥ 9001 is classified as a mega data center. |
| Retail Colocation | It refers to those customers who have a capacity requirement of 250 kW or less. These services are majorly opted by small and medium enterprises (SMEs). |
| Wholesale Colocation | It refers to those customers who have a capacity requirement between 250 kW to 4 MW. These services are majorly opted by medium to large enterprises. |
| Hyperscale Colocation | It refers to those customers who have a capacity requirement greater than 4 MW. The hyperscale demand primarily originates from large-scale cloud players, IT companies, BFSI, and OTT players (like Netflix, Hulu, and HBO+). |
| Mobile Data Speed | It is the mobile internet speed a user experiences via their smartphones. This speed is primarily dependent on the carrier technology being used in the smartphone. The carrier technologies available in the market are 2G, 3G, 4G, and 5G, where 2G provides the slowest speed while 5G is the fastest. |
| Fiber Connectivity Network | It is a network of optical fiber cables deployed across the country, connecting rural and urban regions with high-speed internet connection. It is measured in kilometer (km). |
| Data Traffic per Smartphone | It is a measure of average data consumption by a smartphone user in a month. It is measured in gigabyte (GB). |
| Broadband Data Speed | It is the internet speed that is supplied over the fixed cable connection. Commonly, copper cable and optic fiber cable are used in both residential and commercial use. Here, optic cable fiber provides faster internet speed than copper cable. |
| Submarine Cable | A submarine cable is a fiber optic cable laid down at two or more landing points. Through this cable, communication and internet connectivity between countries across the globe is established. These cables can transmit 100-200 terabits per second (Tbps) from one point to another. |
| Carbon Footprint | It is the measure of carbon dioxide generated during the regular operation of a data center. Since, coal, and oil & gas are the primary source of power generation, consumption of this power contributes to carbon emissions. Data center operators are incorporating renewable energy sources to curb the carbon footprint emerging in their facilities. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is not a part of the pricing, and the average selling price (ASP) is kept constant throughout the forecast period for each country.
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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