A new report by international consulting firm BroadGroup forecasts space growth averaging 61 percent across 7 key markets by 2014. Yet this is still likely to leave a space shortage following significant enterprise outsourcing. The recently published report, Data Centres Latin America – Competition, Demand Drivers and Growth, forecasts sustained sector growth across the region.
This is the first report that assesses the Latin America marketplace for data centers and identifies key trends across the seven main markets: Argentina, Brazil, Chile, Colombia, Mexico, Panama and Peru with a total of more than 200 data centers (excluding enterprise data centers).
The report finds that although data center businesses have largely flourished over the past two years, significant infrastructure challenges lies ahead, particularly those resulting from a lack of investment by the utility firms in power transmission, but also a lack of diversity in supply.
Latin American economies are gaining new momentum after surviving the last economic crisis. These economies are not homogeneous but data centres have generally fared well across the key metro areas of Sao Paulo, Buenos Aires, Rio de Janeiro, Santiago de Chile, Mexico DF, Queretaro, Monterrey, Bogota, Lima and Panama. Apart from Argentina, evidence of investment in data center new build is provided. The report suggests there is no threat of over-supply of facilities and in most cases there could be space shortages in the next few years.
“As enterprises shift to outsourcing, which is a key trend identified in the report research, the facilities available are upgrading but the business models often used are outmoded. Data center expertise is needed to manage this process, and although significant investment is occurring we believe that based on current market growth and facility expansion, there will be a shortage of space in a few years time,” commented Pablo Diantina, research manager for BroadGroup Latin America.
Each country covered in the report contains a detailed taxonomy of data center location by player, service delivery capacity, data centre facility profiles, and total space. It also covers critical issues of infrastructure and power availability for each country and key player profiles.
BroadGroup is also organising the Data Centre Europe Conference, which takes place at Espaces Antipolis, near Nice in France from 22 – 23 April 2010.
More information is available at www.datacentres.com/marketreports