A new report from ResearchAndMarkets.com says LATAM is witnessing fierce competition among service providers looking to build dozens of new data center facilities.
The Latin American Data Center Colocation Services Growth Opportunities report recognizes the LATAM data center market as expanding rapidly and becoming increasingly competitive as new service providers enter the market and existing providers continue to expand capacity in their facilities.
Public cloud service providers are establishing regions (3 or more data centers by country) in different countries, aiming to form regions that guarantee more resiliency to customers, thus driving the growth of data center colocation to host this additional infrastructure, the report says.
In addition, to meet digitalization’s demands, enterprises and governments seek top-tier data centers and digital infrastructure.
The report says telecommunication operators, technology companies and enterprises increasingly opt to outsource their data operations to third-party data center colocation providers.
With the surge in digitalized data, the need for larger and more advanced infrastructure for storage, processing, and analysis has grown. This tends to grow even more with the advent of artificial intelligence and generative AI adoption.
Consequently, the report says, large-scale data deployments are rising, and enterprise IT deployments are beginning to match hyperscale-like demands for data centers.
In addition, demand from content and digital media and the gaming segment is expected to drive hyperscale demand, and service providers that offer high scalability, power capacity and efficiency will be in demand.