The Latin America, Middle East and Africa Data Center Colocation Market would witness market growth of 18.3% CAGR during the forecast period (2024-2031).
The Brazil market dominated the LAMEA Data Center Colocation Market by Country in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $3,249.5 million by 2031. The Argentina market is registering a CAGR of 19.9% during (2024 - 2031). Additionally, The UAE market would register a CAGR of 17.1% during (2024 - 2031).
The growing emphasis on sustainability and energy efficiency has also become a major trend in the market. With data centers consuming massive amounts of electricity, there is increasing pressure to adopt green energy solutions, liquid cooling technologies, and AI-driven energy optimization. Many leading colocation providers, such as Equinix, Digital Realty, and NTT Data, have committed to carbon-neutral operations by investing in renewable energy sources and advanced cooling systems.
Another transformative trend is the increased use of AI and automation in colocation management. AI-powered solutions are deployed to enhance predictive maintenance, workload distribution, and security monitoring. These technologies enable colocation providers to optimize power usage, prevent hardware failures, and mitigate cybersecurity threats in real-time.
In Brazil, the retail sector’s growth is crucial in driving demand for data center colocation. The Brazilian Institute of Geography and Statistics (IBGE) reported a 2.5% rise in retail trade sales between December 2023 and January 2024, with a year-on-year increase of 4.1% in January. This surge highlights the growing dependence on digital commerce, payment processing, and cloud-based customer analytics, all of which require robust data center infrastructure. The expansion of e-commerce, omnichannel retailing, and fintech solutions in Brazil is prompting businesses to seek colocation services to manage their increasing data needs efficiently. As retail enterprises scale operations, colocation data centers provide the necessary infrastructure without high upfront capital investments, making them an attractive option for companies looking to expand their digital footprint. In conclusion, the combined impact of UAE’s data center expansion and Brazil’s retail growth fosters a dynamic market environment.
Free Valuable Insights: The Worldwide Data Center Colocation Market is Projected to reach USD 168.68 Billion by 2031, at a CAGR of 15.6%
Based on Type, the market is segmented into Retail Colocation and Wholesale Colocation. Based on Enterprise Size, the market is segmented into Large Enterprises and SMEs. Based on Tier Level, the market is segmented into Tier 3, Tier 4, Tier 1, and Tier 2. Based on End Use, the market is segmented into IT & Telecom, Healthcare, Media & Entertainment, BFSI, Retail, and Other End Use. Based on countries, the market is segmented into Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria, and Rest of LAMEA.
By Type
By Enterprise Size
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