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Data Centres Growth In Latin America Of 61% Over Next Three Years Will Leave Space Shortage


London and Buenos Aires – 25 February 2010 – A new report by international consulting firm BroadGroup forecasts space growth averaging 61% across 7 key markets by 2014. Yet this is still likely to leave a space shortage following significant enterprise outsourcing.

In a new report published today, Data Centres Latin America – Competition, Demand Drivers and Growth, ( ) BroadGroup forecasts sustained sector growth across the region. This is the first report that assesses the Latin America marketplace for data centres and identifies key trends across the seven main markets: Argentina, Brazil, Chile, Colombia, Mexico, Panama and Peru with a total of more than 200 data centres (excluding enterprise data centres).

The report finds that although data centre businesses have largely flourished over the past two years, significant infrastructure challenges lies ahead, particularly those resulting from a lack of investment by the utility firms in power transmission, but also a lack of diversity in supply. Research suggests that data centre service evolution is continuing across the region, growth will be particularly intensive in Sao Paulo and Santiago de Chile, where the economies remain more predictable.

Having weathered the last global financial crisis, the Latin American economies are gaining new momentum. These economies are not homogeneous but data centres have generally fared well across the key metro areas of Sao Paulo, Buenos Aires, Rio de Janeiro, Santiago de Chile, Mexico DF, Queretaro, Monterrey, Bogota, Lima and Panama. Apart from Argentina, evidence of investment in data centre new build is provided. The report suggests there is no threat of over-supply of facilities and in most cases there could be space shortages in the next few years.

“Latin America is at a crossroads of change for data centres,” commented Pablo Diantina, research manager for BroadGroup Latin America. “As enterprises shift to outsourcing, which is a key trend identified in the report research, the facilities available are upgrading but the business models often used are outmoded. Data centre expertise is needed to manage this process, and although significant investment is occurring we believe that based on current market growth and facility expansion, there will be a shortage of space in a few years time.”

Each country covered in the report contains a detailed taxonomy of data centre location by player, service delivery capacity, data centre facility profiles, and total space. It also covers critical issues of infrastructure and power availability for each country and key player profiles.

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