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Latin American data centre infrastructure market to hit $1bn in 2013

Thu, 03/07/2013 - 17:36 -- Ruth Williams

The Latin American market for uninterruptible power supplies (UPS), data centre cooling, rack power distribution units (PDU), and IT racks and enclosures will surpass US$1 billion by the end of 2013, according to a new report by IMS Research.

The data centre infrastructure market is forecast to grow at an average annual rate of roughly 10% through 2016. The UPS market accounts for the greatest share of revenues, at nearly three-quarters of the total market. Next in size are IT racks and enclosures, cooling, and rack PDU.

IMS Research analyst Andrés Gallardo said: “The Latin American economy is rapidly evolving to compete in the global market, and there is no exception to the digitalisation and efficiency trends that drive the data centre market.

“Nonetheless, it is well-known that up-front costs are of greater concern than operational costs throughout the region. For this reason, lower cost products tend to have a greater share of revenues than in more advanced economies like the US or Europe.

“It is not surprising that the two fastest growing products are rack PDU and cooling equipment for two reasons: Poorly-equipped data centres and server rooms historically used rack PDUs and cooling equipment not specifically designed for data centres. This means that these products are the first ones to be replaced when updating the data centre.” Gallardo added.