The Latin America, Middle East and Africa Data Center Transformer Market would witness market growth of 7.8% CAGR during the forecast period (2024-2031).
The Brazil market dominated the LAMEA Data Center Transformer Market by Country in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $228.6 million by 2031. The Argentina market is registering a CAGR of 9.4% during (2024 - 2031). Additionally, The UAE market would witness a CAGR of 6.8% during (2024 - 2031).
Data centers consume significant energy, and operators are constantly looking for ways to reduce energy costs and improve operational efficiency. Transformers that provide higher levels of energy efficiency are increasingly in demand. The push for green and sustainable operations also drives the adoption of transformers designed to reduce energy consumption, minimize heat generation, and support renewable energy integration. Additionally, the focus on reliability means that data center operators must invest in transformer systems that deliver consistent power without failure, ensuring high uptime and operational continuity.
Governments and regulatory bodies worldwide are increasing pressure on data centers to improve energy efficiency and reduce environmental impact. Many data center operators invest in new transformer technologies to meet energy efficiency standards and reduce their carbon footprint. This regulatory environment is creating opportunities for manufacturers of high-efficiency transformers that can meet these evolving standards.
As per the International Data Corporation (IDC), IT spending was $8.2 billion in Chile in 2022 and is expected to grow 5.5 percent by 2024. Along with the growth in IT spending, there is a parallel focus on energy efficiency and sustainability in Chile’s data center sector. The demand for energy-efficient transformers is rising as the nation endeavors to reduce its carbon footprint and adopt more environmentally friendly technologies. Data centers in Chile are seeking transformers that can support renewable energy integration and reduce energy loss during power distribution. This trend aligns with global efforts to minimize the environmental impact of digital infrastructure. In Chile, data centers strive to achieve sustainability objectives, which will continue stimulating innovation in the transformer industry. Hence, the growth of IT spending and digital infrastructure in Chile and UAE’s rising data center industry is propelling the growth of the data center transformer market.
Free Valuable Insights: The Worldwide Data Center Transformer Market is Projected to reach USD 11.5 Billion by 2031, at a CAGR of 6.0%
Based on Insulation Type, the market is segmented into Oil Immersed and Dry. Based on Voltage, the market is segmented into 1,250-3,750 kVA, 625-1,250 kVA, Below 625 kVA, and Over 3,750 kVA. Based on Channel Partners, the market is segmented into OEMs, Distributors, Online Retailers, and Electrical Contractors. Based on countries, the market is segmented into Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria, and Rest of LAMEA.
By Insulation Type
By Voltage
By Channel Partners
By Country
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