Partnerships with a Purpose: The Key to Leveraging the Growth of the Data Center Industry in Latin America

There are two realities that have recently shaped the development of the data center industry in Latin America: the external crisis and growth.

First, 2022 has proven to be an exceptional year for the regional industry in terms of new investments for the construction, expansion or renovation of data centers, especially in hyperscale and co-location.

Arizton reports that in the past two years, the Latin American data center market has seen investments of $6030 billion, and this figure is expected to increase to $9.91 billion by 2027. Examples include the investments that giants such as Microsoft, Amazon Web Services, Odata, Ascenty and Equinix announced by the end of 2021.

In this context, Mordor Intelligence expects the Latin American data center construction market to register a compound annual growth rate (CAGR) of 7.52% between now and 2026. According to the firm, this demand for infrastructure is due to the growth of advanced technologies, such as software-defined data centers and IoT.

IDC also gives an optimistic picture of the IT market in the region. Its projections indicate that the industry will close 2022 with a 9.4% growth in the enterprise segment (without taking into account the consumer market), which positions the sector as a regional economic engine.

Both consultants’ projections argue that the penetration of technologies in the region – such as 5G networking, edge computing and IoT – will require more data processing in the coming years, which will drive market growth.

However, this has occurred at the same time that the external crisis and strong economic pressures threaten the region. For the data center industry, factors such as rising fuel prices and a global supply chain crisis translate into delays in construction and renovation projects, more expensive primary materials and great uncertainty.

In such a complex situation, it is essential that the different players in the industry – manufacturers, distributors and partners – form » partnerships with a purpose» in order to join forces to take advantage of the momentum the industry is experiencing and create new business opportunities while overcoming external economic challenges.

For Vertiv, these partnerships mean working hand in hand with its partners in the region and offering them exclusive access to resources that will help generate growth. These alliances are based on three essential pillars:

  • Adjust the commercial strategy to new market trends.
  • Provide the necessary technical, commercial and marketing tools for partners in order to develop the business.
  • Develop innovative and efficient technology to meet changing market needs.

Thus, last month Vertiv presented the Latam Partner Summit 2022, «Ecosystems with purpose», an event that brings together the company’s partners in the region to offer an updated view of the reality in the industry, as well as the necessary tools to develop successful businesses in a context of external crisis and growth.

At the LATAM Partner Summit 2022, attendees had access to more than 6 hours of uninterrupted content in 3 languages and multiple formats: 7 panels with Vertiv specialists, 6 expert panel sessions and international guest speakers such as John Price, CEO of Americas Market Intelligence; Guillermo Arduino, digital culture expert and CNN host for more than 22 years; and María Paula Duque, sustainability leader at Microsoft LATAM.

This summit provided attendees with leadership content that will help them make smart decisions and the necessary tools to face the digital transformation.

In addition, during the summit, the annual partner awards were presented, which recognize the success achieved this year in 10 categories.