South America Data Center Cooling Market Size, Share, Opportunities, And Trends By Solutions (Air Conditioners, Chillers, Economizers, Cooling Towers, Others), By Enterprise Size (Small, Medium, Large), By End Users (Colocation Service Providers, Cloud Service Providers, Enterprise), By Industry Vertical (BFSI, Manufacturing, Healthcare, Communication And Technology, Energy, Education, Government, Media And Entertainment, Others), And By Country - Forecasts From 2024 To 2029

The South America data center cooling market is estimated to grow from US$0.368 billion in 2024 to US$0.491 billion in 2029 at a CAGR of 5.92%. 

Data center cooling ensures that servers and hardware components used in processing and stacking of data are in functional condition. In a region like South America, economies such as Brazil and Argentina are experiencing positive growth in their industrial productivity, followed by investments in new data center establishments. Moreover, implementing policies to reduce carbon footprint is further propelling the regional market expansion, as it lessens heat and optimizes energy consumption, so more ventilation and colling tools are required. 

South America Data Center Cooling Market Drivers 

• Favorable launches of colocation services are expected to the regional market growth

Cooling equipment such as air conditioners, chillers, and cooling towers forms an integral part of strategies to maintain the operating temperature of data centers. Major South American nations, namely Brazil, Argentina, and Colombia, are experiencing an upward trajectory in their industrial output, with small, medium, and large enterprises operating in respective fields witnessing positive growth in their employee strength. With such growth, the data developed will require an appropriate infrastructure, which has led to the establishment of colocation centers in the region.

For example, B3 S.A., in collaboration with Brazilian stock exchange company TNS (Transaction Stock Exchange), launched colocation services in Sao Paulo in November 2023. The collaboration would assist TNS in developing its global solutions, including trading, clearing & settlement operations across commodities, derivatives, and equities. Likewise, in October 2022, Scala Data Centers announced the construction of its first Hyperedge data center in Porto Alegre City, Southern Brazil, to address the distributed computing & connection and cloud service demand. A total investment of R$250 million would be incurred on the establishment. 

• Investment in data center establishments is anticipated to drive market growth.

Like the leading economies, the technological advancements and infrastructure developments in South America are also rising. Modern innovations such as hyper-scale & colocation data centers to exercise efficient data stacking and processing are experiencing investment implementation in major SA nations.

For instance, in October 2022, Equinix Inc. announced an investment of US$45 million, which was used to establish its new IBX (International Business Exchange) data center in Bogota. The new establishment would also reinforce the company’s commitment to strengthening Latin America’s digital economic growth. Likewise, the company, in Q2 of 2022, acquired four data centers from Chilean telecommunication company Empresa Nacional De Telecomunicaciones S.A. for a valuation of US$705 million, which further expanded its footprint in the SA region. Hence, such favorable investment will bolster the demand for necessary components, including immersive cooling technology, driving market expansion. 

South America Data Center Cooling Market Geographical Outlook

• Brazil is projected to account for a remarkable share of the market.

The South American data center cooling market, based on country, is analyzed into Brazil, Argentina, Peru, Chile, and others. Brazil is anticipated to constitute a significant portion of the market, fuelled by the bolstering growth in major end-users such as BFSI, telecommunication, energy, government, and healthcare.

Various government policies are being implemented to further productivity. For instance, per a January 2024 article published in gov.br., the National Council for Industrial Development launched “New Industry Brazil,” which aimed to bolster industrial productivity and technological development in the economy until 2033.  Additionally, the well-established presence of major colocation service providers, namely Equinix Inc. and Scala Data Centers, actively participating in their operations expansions is another market-driving factor. 

South America Data Center Cooling Market Key Developments

• In March 2024, Acronis announced the establishment of its new “Cyber Cloud Data Center” in Sao Paulo. This is the second in a row in Brazil and enables Acronis to provide its partners with a wide range of cyber protection solutions. It also enables the company to exercise advanced data management with faster access. 

South America Data Center Cooling Market Scope:

Report Metric	Details
Market Size Value in 2024	US$3.993 billion
Market Size Value in 2029	US$6.087 billion
Growth Rate	CAGR of 8.80% from 2024 to 2029
Study Period	2019 to 2029
Historical Data	2019 to 2022
Base Year	2024
Forecast Period	2024 – 2029
Forecast Unit (Value)	USD Billion
Segments Covered	Solution Enterprise Size End-Users Industrial Vertical Country
Companies Covered	IBM Fujitsu (Furukawa Group) Eaton Corporation Vertiv Group Corp Hewlett Packard Enterprise Development LP
Regions Covered	Brazil, Argentina, Chile, Peru, Others
Customization Scope	Free report customization with purchase

 

The South America Data Center Cooling market is segmented and analyzed as follows:

• By Solution
  • Air Conditioner
  • Chillers
  • Economizers
  • Cooling Towers
  • Others
• By Enterprise Size
  • Small
  • Medium
  • Large
• By End-Users
  • Colocation Service Provider
  • Cloud Service Provider
  • Enterprise
• By Industrial Vertical
  • BFSI
  • Manufacturing
  • Healthcare
  • Communication and Technology
  • Energy
  • Education
  • Government
  • Media and Entertainment
  • Others
• By Country
  • Brazil
  • Argentina
  • Chile
  • Peru
  • Others

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key Benefits for the Stakeholder

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Processes

3. EXECUTIVE SUMMARY

3.1. Key Findings

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

4.5. Analyst View

5. SOUTH AMERICA DATA CENTER COOLING MARKET BY SOLUTION

5.1. Introduction

5.2. Air Conditioner

5.3. Chillers

5.4. Economizers

5.5. Cooling Towers

5.6. Others

6. SOUTH AMERICA DATA CENTER COOLING MARKET BY ENTERPRISE SIZE

6.1. Introduction

6.2. Small

6.3. Medium

6.4. Large

7. SOUTH AMERICA DATA CENTER COOLING MARKET BY END-USER

7.1. Introduction

7.2. Colocation Service Providers

7.3. Cloud Service Provider

7.4. Enterprise

8. SOUTH AMERICA DATA CENTER COOLING MARKET BY INDUSTRY VERTICAL

8.1. Introduction

8.2. BFSI

8.3. Manufacturing

8.4. Healthcare

8.5. Communication and Technology

8.6. Energy

8.7. Education

8.8. Government

8.9. Media and Entertainment

8.10. Others

9. SOUTH AMERICA DATA CENTER COOLING MARKET BY COUNTRY

9.1. Introduction

9.2. Brazil

9.3. Argentina

9.4. Chile

9.5. Peru

9.6. Others

10. COMPETITIVE ENVIRONMENT AND ANALYSIS

10.1. Major Players and Strategy Analysis

10.2. Market Share Analysis

10.3. Mergers, Acquisitions, Agreements, and Collaborations

10.4. Competitive Dashboard

11. COMPANY PROFILES

11.1. IBM

11.2. Fujitsu (Furukawa Group)

11.3. Eaton Corporation

11.4. Vertiv Group Corp

11.5. Hewlett Packard Enterprise Development LP

11.6. Schneider Electric

IBM

Fujitsu (Furukawa Group)

Eaton Corporation

Vertiv Group Corp

Hewlett Packard Enterprise Development LP

Schneider Electric