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Alliances with a purpose: the key to taking
advantage data center industry growth in
Latin America

Saida Ortiz • October 19, 2022

Two realities have marked the development of the data center industry in Latin America recently: growth and external crises.

On the one hand, 2022 has proven to be an exceptional year for the regional industry in terms of new investments for the construction, expansion or renovation of data centers, especially hyperscale and colocation.

The firm Arizton claims that in the last two years, the data center market in Latin America has witnessed investments of US$6.03 billion, and it is expected that by 2027 this figure will rise to US$9.11 billion. Examples of this are the investments that giants such as Microsoft, Amazon Web Services, Odata, Ascenty and Equinix announced at the end of 2021. 

In this context, Mordor Intelligence estimates that the data center construction market in Latin America will register a CAGR of 7.52% between now and 2026. According to the firm, this demand for infrastructure is due to the growth of advanced technologies, such as software defined data centers and IoT.

IDC also paints an optimistic picture for the IT market in the region. Its predictions point to the industry closing 2022 with 9.4% growth in the business segment (not counting the consumer market), positioning the sector as a regional economic engine.

The projection of both consultants supports that the penetration of technologies in the region such as 5G, Edge Computing and IoT will demand a greater data processing infrastructure in the coming years, which will drive market growth.

However, all this has occurred at the same time that external crises and strong economic pressures threaten the region. For the data center industry, factors such as rising fuel prices and a global supply chain crisis mean delays in construction or renovation projects, higher prices for raw materials, and a great deal of uncertainty.

In a complex situation like this, it is key that the different players in the industry (manufacturers, distributors and partners) create "alliances with a purpose," in order to join forces to take advantage of the moment the industry is experiencing and create new business opportunities, while external economic challenges are overcome.

For Vertiv, these alliances mean working hand in hand with its partners in the region, offering them exclusive access to resources that can help generate growth. These alliances are built on three essential pillars:

  1. Align the commercial strategy to new market trends.
  2. Provide the necessary technical, commercial and marketing tools so that the partners can develop the business.
  3. Develop innovative and efficient technology that meets the changing needs of the market.

In this spirit, Vertiv will offer, on October 20, the Latam Partner Summit 2022, "Ecosystems with Purpose" which seeks to bring together the company's partners in the region to offer an updated vision of the reality of the industry as well as the necessary tools to develop successful businesses in the context of growth and external crisis.

At the LATAM Partner Summit 2022, attendees will be able to access more than 6 hours of uninterrupted content in three languages ​​and multiple formats: 7 panels with Vertiv specialists, 6 think tank sessions, and invited international speakers such as John Price, managing director, Americas Market Intelligence General; Guillermo Arduino, expert in digital culture and host on CNN for more than 22 years; and Maria Paula Duque, sustainability lead at Microsoft LATAM.

This summit will provide attendees with leadership content that will help them make smart decisions and give them the tools they need to tackle digital transformation.

Also at the summit, the annual partner awards will be presented, recognizing the success they have achieved this year in 10 categories.

To participate, register through Latam Partner Summit 2022.

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