The South America data centre cooling market was valued at US$0.190 billion in 2020.
Data center cooling equipment uses tools, systems, techniques, and processes to ensure ideal temperature and humidity levels within data centers. It ensures cooling of the equipment, proper ventilation, and humidity control that keeps the equipment within the desired temperature. As a result of the rise in cloud computing, and increasing IT requirements the temperature levels increase in data centers and many times damage the equipment. The data center cooling system removes the access heat from the air and replaces it with cooler air by venting hot air outside and bringing in cooler air. Certain systems aid in recycling internal air by cooling it through a hot and cold aisle. Emerging technologies in data center cooling are air cooling, hot and cold aisle layouts, liquid cooling, geothermal cooling, evaporative cooling, solar cooling, and Kyoto cooling. data center cooling provides numerous benefits which include greater efficiency in a data center, longer server uptime, and, longer lifespan of technology.
An increase in IT processes and demand for data center cooling systems are expected to boost the market for South America Data Center Cooling Market.
The demand for IT processes from small, medium, and large enterprises to manage data and security have increased the demand for data centers in South America which is further increasing the demand for data center cooling system. According to International Trade Administration, Brazilian Information and Communication Technology ranked 9th in the world and was valued at US$49.5 billion. Most of the growth was witnessed in hardware and software services. Digital transformation and the rise in colocation data centers are further increasing the demand. For instance, IBM launched a cloud multizone region in Brazil in March 2021. The launch expanded the global cloud footprint, security-rich cloud infrastructure, and sustainable solutions with reduced workloads from cloud and data centers. Elea Digital partnered with Vertiv in March 2022 which enabled both companies to expand their market base in Porto Alegre, Curitiba, and Brasilia in Brazil. The partnership also provided support for edge services contact in Brazil and market growth.
Recent technologies such as hyper-scale data center cooling facilities and immersion cooling for data centers that employ 3M fluids for seamless performance, reduced expenses and less energy consumption are increasing the demand for South America Data Center Cooling Market.
However, extreme power consumption in the case of managing colocation data centers and increasing overhead costs for installing data center cooling can hinder the growth of the data center cooling market in South America.
Recent Developments such as launches and expansion of data centers are excepted to propel the demand for the data center cooling market in the region.
For instance, Brazil’s Scala data center launched new data centers in Sao Paulo in August 2022 which provided 6MV IT power capacity. HostDime announced to build of a data center in Joao Pessoa, Brazil in April 2022 that will power the data center by the sun. The solar power plant will support the entire data center and the first phase of the installation features 2000 photovoltaic modules with a 540-watt peak. The aim is to be aligned with global sustainability goals and provide energy-efficient technological solutions to customers.
Gigabyte which is a leader in high-performance servers and workstations launched a series of servers for single-phase liquid immersion cooling in November 2022. The company expanded its investment base and supported immersion cooling computing solutions. Moreover, the company launched immersion cooling tanks and immersion-ready servers namely G152-Z12 and 180OU OCP.
Ascenty, a South American data centre services provider launched its second data centre in Chile in August 2022. The data center is built as per tier 3 standards that provided 48 hours of operation by generator and a high-performance cooling system with redundant lateral corridors and with 31MW IT load capacity.
During the forecast period, Brazil is expected to gain a decent share of the South American data center cooling market.
South America is capturing a large market share in the data center cooling market due to an increase in demand for colocation and hyper-scale data centers for small, medium, and large enterprises, new expansion, and launches by companies in Brazil, and demand for the data center from the open banking system. According to International Trade Administration, cloud services particularly Platform as a Service (PaaS) in the public cloud recorded an increase in Brazil. Further, the Brazilian Financial Industry is expanding its open banking system that will allow consumers to access and control banking data through third-party applications and the ecosystem is organized and regulated by the Brazilian National Monetary Council and Central Bank of Brazil. The open banking system further increases the demand for the data center to store and securely manage data. System downtime or power outrage failure due to increased server traffic will further require data center cooling for managing the operations. Companies have introduced different cooling technologies for streamlining the operation of the data center. For instance, Daikin’s VRV system (Variable Refrigerant Volume) is a solution that adapts to different server designs and supplies the necessary cold air for maintaining the exact temperature that can be used in hardware elements.
COVID-19 had a positive impact on the South American data center cooling market. The pandemic witnessed work from a culture that increased the demand for data center cooling equipment from small, medium, and large enterprises. Cloud services demand increased in Brazil and other countries as a result of maintaining operations remotely. Furthermore, hyperscale data centers, 5G, and private network services increased the demand for data center cooling systems in the region.
Key Market Segments
1.1. Market Overview
1.2. COVID-19 Scenario
1.3. Market Definition
1.4. Market Segmentation
2. RESEARCH METHODOLOGY
2.1. Research Data
3. EXECUTIVE SUMMARY
3.1. Research Highlights
4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Force Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. The threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5. SOUTH AMERICA DATA CENTER COOLING MARKET, BY SOLUTIONS
5.2. Air Conditioner
5.5. Cooling Towers
6. SOUTH AMERICA DATA CENTER COOLING MARKET, BY SIZE
6.2. Small Enterprises
6.3. Medium enterprises
6.4. Large Enterprises
7. SOUTH AMERICA DATA CENTER COOLING MARKET, BY END-USER
7.2. Colocation Service Provider
7.3. Cloud Service Providers
8. SOUTH AMERICA DATA CENTER COOLING MARKET, BY INDUSTRY VERTICAL
8.2. Banking and Financial Services
8.5. Communication and Technology
8.9. Media and Entertainment
9. SOUTH AMERICA DATA CENTER COOLING MARKET, BY COUNTRY
10. COMPETITIVE ENVIRONMENT AND ANALYSIS
10.1. Major Players and Strategy Analysis
10.2. Emerging Players and Market Lucrative
10.3. Mergers, Acquisition, Agreements, and Collaborations
10.4. Vendor Competitiveness Matrix
11. COMPANY PROFILES
11.5. Vertiv Group Corp
11.6. Hewlett Packard Enterprise Development LP
11.7. Schneider Electric
Vertiv Group Corp
Hewlett Packard Enterprise Development LP
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