Latin America Data Center Colocation Market Outlook 2024-2029: Trends and Analysis

The Latin America Data Center Colocation market is on the rise, with a projected increase from $1.12 billion in 2023 to $1.81 billion by 2029, growing at an 8.33% CAGR. The region is seeing a surge in data center investments, driven by tax incentives and government initiatives to attract more business.

Countries like Colombia and Chile are leading the way in creating free trade zones and offering tax incentives to foster the development of data center facilities. Key players in the market, such as Ascenty (Digital Realty), Equinix, and HostDime, are investing in expanding their operations in Latin America.

Additionally, the increasing demand for 5G connectivity is driving the growth of edge data centers across the region. By 2030, 5G connections are expected to make up 60% of total mobile connections in Latin America. Countries like Brazil, Mexico, and Colombia are at the forefront of 5G deployment, with significant investments in infrastructure.

Moreover, there is a strong focus on sustainability in the region, with governments in Brazil, Chile, Mexico, and Colombia setting renewable energy targets. This shift towards using renewable energy sources is driving the adoption of eco-friendly practices in data center operations, creating a more sustainable market environment.

Overall, the Latin America Data Center Colocation market is experiencing rapid growth, driven by government initiatives, 5G connectivity, and a focus on sustainability. New entrants in the market are expected to increase competition, leading to better solutions for customers and a more competitive landscape in the industry.