According to Arizton’s latest research report, the Latin America data center colocation market is growing at a CAGR of 8.33% during 2023-2029.
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Report Scope:
Market Size – Investment (2029): $1.81 Billion
Market Size – Investment (2023): $1.12 Billion
CAGR – Investment (2023-2029): 8.33%
Market Size – Area: (2029): 1,217 Thousand Sq. Ft
Power Capacity (2029): 240 MW
Colocation Revenue: $2.9 Billion
Historic Year: 2020-2022
Base Year: 2023
Forecast Year: 2024-2029
Geographical Analysis: Brazil, Chile, Colombia, Mexico, and Rest of Latin America
Latin America is experiencing rapid adoption of advanced technologies, including the Internet of Things (IoT), artificial intelligence (AI), machine learning (ML), and cloud-based services, driving a significant demand for data center investments. The expansion of high-speed internet connectivity, the deployment of 5G networks, and the installation of submarine cables are key factors contributing to this growth. Additionally, the implementation of data localization laws, such as Brazil’s Lei Geral de Proteção de Dados Pessoais (LGPD), which mandates local data storage, is pushing companies to establish data centers within the region.
Brazil currently leads the Latin American data center market, accounting for over 48% of the market share in 2023, followed by Mexico, Chile, and Colombia. Other countries, including Argentina, Peru, Uruguay, Bolivia, Venezuela, and Paraguay, remain relatively untapped, though these markets are expected to see increased data center investment as cloud service demand grows. However, these nations require improvements in inland telecommunications infrastructure to support such investments.
Key players in the market, such as Ascenty (Digital Realty), Scala Data Centers, Equinix, HostDime, Cirion Technologies, ODATA (Aligned Data Centers), and EdgeConneX, are actively expanding across the region to meet the rising demand for cloud and colocation services. This trend is expected to continue, with the rest of Latin America gradually emerging as viable locations for data center buildouts.
Latin America Sees Rapid Growth in Colocation Data Centers, Led by Brazil, Mexico, and Chile
As of June 2024, Latin America boasts approximately 225 colocation data centers, highlighting the region’s growing importance in the global data center market. Brazil leads with around 72 data centers, making it the dominant player in the region. Mexico follows with 39, while Chile has 37, both contributing significantly to the colocation landscape. Colombia, with about 22 data centers, is also becoming a key player in the industry. Other Latin American countries collectively house around 55 data centers, with Argentina holding 17, underscoring the broadening investment in colocation infrastructure across the region.
This growth is driven by the increasing demand for cloud computing services, the adoption of big data analytics, and the need for high-performance computing solutions. As Latin America continues its shift toward digital technologies, there is a rising need for secure and efficient data storage and management. These trends make the region a crucial hub for data center services, attracting global and regional investments from major players in the industry. The expansion of colocation facilities in these countries is a clear reflection of Latin America’s role in supporting the digital economy and meeting the evolving needs of businesses and consumers for advanced data services.
Competitive Overview
In H1 2024, the Latin American colocation data center market is dominated by major players such as Ascenty (Digital Realty) and ODATA (Aligned Data Centers). Ascenty leads with over 2.5 million square feet of white floor space, followed by ODATA with 1.06 million square feet. Scala Data Centers, Equinix, and KIO Networks also play significant roles, with 688,000, 642,000, and 314,000 square feet, respectively. Together, these top five providers account for more than 65% of the total data center space in the region, totaling over 5.3 million square feet.
The market is witnessing a surge in upcoming and under-development projects. Ascenty has eight active projects and one planned data center across Brazil, Chile, Mexico, and Colombia, expected to span over one million square feet. ODATA has four upcoming projects, adding over 750,000 square feet. Equinix has five projects in the pipeline, while Scala Data Centers, a hyperscale operator, has around 30 projects planned, likely covering over 1.1 million square feet when completed.
New operators are entering the market, further intensifying competition. CloudHQ, for example, is developing two data center campuses in Brazil and one in Mexico, which will add over 4.1 million square feet of space. Ada Infrastructure is also expanding with two campuses in Brazil, contributing an additional 500,000 square feet.
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Prominent Data Center Investors
- Actis
- Ascenty (Digital Realty)
- Angola Cables
- AVA Telecom
- Blue NAP Americas
- Cirion Technologies
- Claro
- Digicel
- EdgeConneX
- Elea Data Centers
- EVEO
- Equinix
- Gtd
- HostDime
- IPXON Networks
- InterNexa
- KIO Networks
- Mexico Telecom Partners
- Millicom (Tigo Panamá)
- Oxygen
- OneX
- ODATA (Aligned Data Centers)
- Scala Data Centers
- SONDA
- Telecom Italia Sparkle
- V.tal
- Win Empresas
New Entrants
- Ada Infrastructure
- CloudHQ
- DHAmericas
- Layer 9 Data Centers
- Surfix Data Center
Market Segmentation
Colocation Type
- Retail Colocation
- Wholesale Colocation
Infrastructure
- Electrical Infrastructure
- Mechanical Infrastructure
- General Construction
Electrical Infrastructure
- UPS Systems
- Generators
- Transfer Switches & Switchgear
- PDUs
- Other Electrical Infrastructure
Mechanical Infrastructure
- Cooling Systems
- Racks
- Other Mechanical Infrastructure
Cooling Systems
- CRAC & CRAH Units
- Chiller Units
- Cooling Towers, Condensers & Dry Coolers
- Economizers & Evaporative Coolers
- Other Cooling Units
Cooling Techniques
- Air-based Cooling
- Liquid-based Cooling
General Construction
- Core & Shell Development
- Installation & Commissioning Services
- Engineering & Building Design
- Fire Detection & Suppression
- Physical Security
- DCIM/BMS Solutions
Tier Standard
- Tier I & II
- Tier III
- Tier IV
Geography
- Latin America
- Brazil
- Chile
- Colombia
- Mexico
- The Rest of Latin America
The Arizton Advisory & Intelligence market research report provides valuable market insights for industry stakeholders, investors, researchers, consultants, and business strategists aiming to gain a thorough understanding of the Latin America data center colocation market. Request for Free Sample to get a glance of the report now: https://www.arizton.com/market-reports/latin-america-data-center-colocation-market-size
What Key Findings Will Our Research Analysis Reveal?
How big is the Latin America data center colocation market?
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