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— Blog

How Tech Companies are Shifting the LATAM Data Center Landscape

April 18, 2019

From 1kW to multi-MW deployments, data centers are foundational to powering the digital economy. With the growing compute, storage and data access needs brought by new technologies like AI, AR/VR and IoT, demands on the global hyperscale data center market are increasing.

In fact, it’s expected there will be more than 500 hyperscale data center facilities worldwide by 2020. Beyond that, these facilities are expected to house 68% of all data center processing power and 57% of the data stored in all data centers worldwide.

Latin America’s Shifting Digital Landscape

“The data center market size in Latin America is expected to reach around $1 billion by 2023, growing at an impressive CAGR of more than 11% 2018-2013,” according to Arizton, an advisory and custom research organization. Latin America’s economy is attracting technologies that are demanding top notch providers.

Ecommerce, online payment systems and micro-loans are gaining momentum. In addition, innovators such as marketing automation providers, inside sales platforms and construction efficiency apps are making headway. All of these developments are just the tip of the innovative iceberg emerging from Latin America.

Supporting a Booming Latin American Tech Market

Data centers address more than technology; they generate stable environments for innovation and growth. Ascenty—a data center market leader in Brazil—and Digital Realty recently joined forces, giving both companies the strength of expanded footprint for global enterprises. Together, we can reach wider audiences and create more resources for the burgeoning tech industry. Our new relationship opens up doors to scale our offerings for greater economic prosperity for our customers.

Expanding Borders, Building Trust

Ascenty, founded in 2010, has earned many certifications that are guaranteed by major international certification agencies. Customers trust the service Ascenty provides thanks to their strategic prioritization of credentialed areas which improve security and build trust with customers. Their certificates include infrastructure (ensuring uptime and redundancy), information security (reliability and strategic access), services (best practice compliance, flexibility), financial transactions (secure monetary transactions), anti-bribery (ethical practice best practices), and environmental (renewable energy and best practice compliance).

“This acquisition is a significant extension of our global platform and strengthens our position as a premier global data center solutions provider," says Digital Realty Chief Executive Officer A. William Stein.

Future of Data Centers in Latin America

In 2017, it was reported that more than 70% of tech startups are bootstrapped, with a prediction of growing VC investments around the corner. In 2019, we’re seeing Chinese and American investors expanding their investment portfolios with infrastructure-and service-related companies. That infusion of cash is positioning the Latin American Market for continued growth, offering more ways to serve the region, with data at the heart of it all.