The Latin America, Middle East and Africa Modular Data Center Market would witness market growth of 19.6% CAGR during the forecast period (2024-2031).
The Brazil market dominated the LAMEA Modular Data Center Market by Country in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $1,692 million by 2031. The Argentina market is showcasing a CAGR of 20.3% during (2024 - 2031). Additionally, The UAE market would register a CAGR of 18.5% during (2024 - 2031).
These data centers become even more critical as industries adopt 5G-enabled applications that demand instantaneous data processing. Autonomous vehicles, for example, depend on edge infrastructure to process enormous quantities of sensor data in real-time, thereby guaranteeing safety and seamless navigation. Similarly, augmented reality (AR) applications in gaming, retail, and education require low-latency processing to deliver immersive experiences.
In addition to technological advancements, economic factors drive the adoption of these data centers. Traditional data center construction involves significant upfront costs, long timelines, and ongoing maintenance expenses. In contrast, these data centers offer cost-effective alternatives with shorter deployment cycles and predictable expenses. This affordability makes them an attractive option for small and medium-sized enterprises (SMEs), which may lack the resources to invest in large-scale facilities but still require robust data processing capabilities.
In South Africa, the increasing adoption of cloud computing has spurred significant investment in these data centers. Around 77% of large South African companies have already implemented cloud computing in some form, creating a strong demand for localized data infrastructure. Key players such as BCX, Huawei, AWS, Microsoft, and Oracle are establishing and expanding data centers in the region, aiming to transform South Africa into a regional data hub. These data centers are critical in addressing this demand, offering scalable and energy-efficient solutions to support the growing digital economy. This shift positions South Africa as a leader in the African data center industry while attracting further investments to enhance its technological capabilities. Therefore, modular data centers are essential in satisfying the increasing demands of economies in LAMEA that are adopting technologies such as cloud computing, IoT, and AI.
Free Valuable Insights: The Worldwide Modular Data Center Market is Projected to reach USD 78.43 Billion by 2031, at a CAGR of 17.0%
Based on Component, the market is segmented into Solutions (All-in-one Modules, and Individual Modules [IT Modules, Power, and Cooling]), and Services (Integration & Deployment, Design & Consulting, and Maintenance & support). Based on Organization Size, the market is segmented into Large Enterprises, and Small & Medium Enterprises. Based on Industry Vertical, the market is segmented into IT & Telecom, BFSI, Healthcare, Government & Defense, Media & Entertainment, Retail, and Other Industry Vertical. Based on countries, the market is segmented into Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria, and Rest of LAMEA.
By Component
By Organization Size
By Industry Vertical
By Country
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