(WEB HOST INDUSTRY REVIEW) — IT consulting firm BroadGroup (www.broad-group.com) announced on Monday it has released a new report that forecasts a 61 percent growth in data center space across seven key Latin American markets by 2014.
This increase in demand for data center space will lead to a space shortage following significant enterprise outsourcing.
Entitled “Data Centers Latin America – Competition, Demand Drivers and Growth”, the report is the first to assess the Latin America marketplace for data centers.
It 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.
Data center businesses in these Latin American markets have largely flourished over the past two years. However, the markets face significant infrastructure challenges, particularly those resulting from a lack of investment by the utility firms in power transmission, as well as a lack of diversity in supply.
The research suggests that data center service development is continuing across the region, growth will be particularly intensive in the more predictable economies of Sao Paulo and Santiago de Chile.
According to the research, these Latin American economies are not homogeneous but data centers 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.
The report shows evidence that there are significant investments in new data center builds. It also suggests there is no threat of over-supply of facilities, and in most cases, there is a potential of space shortages in the next few years.
“Latin America is at a crossroads of change for data centers,” says Pablo Diantina, research manager for BroadGroup Latin America. “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.”
The report offers a detailed profile of each country according to data center location by player, service delivery capacity, data center description, and total space.
It also covers critical issues of infrastructure and power availability for each country and key player profiles.
More information about the report can be found on BroadGroup’s website.
