Hyperscalers Drive the Growth and Transformation of Colocation in Latin America
Future growth potential enhanced by current cloud demand, new investments, and the region’s move toward increased digitization
Research Overview
The Latin American data center colocation market shows a strong future growth potential, enhanced by current cloud demand, new investments, and the region’s move toward increased digitization. According to Frost & Sullivan’s Cloud End-User Survey, nearly 90% of surveyed companies in the region are using colocation today or planning to implement it by 2022, while nearly 85% are using hybrid cloud today or are planning to implement it by 2022.
This outlook cascades into some colocation providers acquiring real estate for future development and employing teams dedicated to land scouting. Simultaneously, this scenario leads to the increased demand for colocation providers as cloud providers seek additional local data center capacity and as companies move their IT equipment to colocation facilities.
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