Challenges ahead in the LATAM data centre market

01 January 2011 |


According to international consultancy Broadgroup’s Data Centres Latin America – Competition, Demand Drivers and Growth report, data centre space is set to grow 61% across seven Latin American markets (Argentina, Brazil, Chile, Colombia, Mexico, Panama and Peru) by 2014. Yet although the region boasts more than 200 data centres (excluding enterprise data centres) across these markets, this is still likely to leave a space shortage following enterprise outsourcing.

Latin America is at a crossroads of change for data centres, according to Broadgroup. As enterprises shift to outsourcing, which is a trend identified in the report research, the facilities available are upgrading but the business models often used are outmoded. “Latin America is at a crossroads of change for data centres,” said Pablo Diantina, research manager for Broadgroup Latin America. “As enterprises shift to outsourcing, the facilities available are upgrading but the business models often used are outmoded.” Data centre expertise is needed to manage this process, and although significant investment is occurring, Broadgroup believes that based on market growth and facility expansion, there will be a shortage of space in a few years time.

The report illustrates the vast geography of the continent as well as its potential, and the way in which metro areas are progressively being connected using dark fibre and submarine cables. Power generation networks and grid connections remain an immense challenge, as does the development of clean and renewable energy. Argentina, for example, has large untapped hydroelectric potential, according to the consultancy.

Moves are afoot to build wind power plants and introduce green energy across the continent but the investment required to do so probably means this will only occur in the longer term. Nevertheless research did uncover evidence of plans for some of the new data centres under construction to be powered by renewable energy.