Brazil is undergoing economic consolidation as well as enjoying a return to economic expansion. It has assumed pole position in the development of data centres across Latin America. Across 9 key metro areas in the region – two of which, Sao Paulo and Rio de Janeiro are located in the country – Brazil has close to 50% of the total data centre space.

Research for this report focused on Data Centres in the cities of Sao Paulo, Rio de Janeiro, Belo Horizonte, Porto Alegre, Curitiba, Brasilia and Campinas. The objective of this research has been to identify all participants in the Data Centres market and to include the key carrier neutral Data Centre providers, carrier-based Data Centres, System Integrators Data Centres, Hosting Data Centres, ISP/ Internet Data Centres and other Small Data Centre providers, to reflect an accurate representation of these market segments.

Inward investment and economic growth has generated local demand for IT investment and created opportunities to build new Data Centres and expand existing facilities.

However there are few “carrier neutral” facilities and quality space is at a premium. Even with new facilities forecast for deployment after the date of publication, the report suggests that prices will remain high. Occupancy rates are however good and demand has been sustained.

Power supply is a key concern and was the factor most frequently cited during interviews conducted for this report. Significant investment in the national grid will be required to allay fears of blackouts that have occurred in recent times across the entire country. More emphasis is being placed in consequence on achieving efficiency in new builds and in retrofitting legacy facilities.

The report suggests that opportunities are highest for new entrant infrastructure providers with high tier carrier neutral models focused on colocation. Customers are increasingly interested in acquiring integrated IT and BPO services from one single service provider.

13 key players are identified in the report with a further 8 of significance including new entrants. A majority are carrier owned. Collectively they largely represent ownership of 76 Data Centres (excluding Enterprise Data Centres). A few of the players have regional developed regional strategies with presence in other markets, particularly in Argentina and Colombia.

Conservatively, the report forecasts that data centre space will increase by 40% between the end of 2011 and 2014. Brazil is shifting from a temporary general constraint of Data Centre space it experienced in the period up to 2009, to a situation of optimum market supply, and although tier classification will continue to vary, the report suggests a healthy market for Data Centres in the coming years.

EXECUTIVE SUMMARY

Introduction and acknowledgement
Research scope and methodology
Country Indicators
The Economy

MARKET OVERVIEW

Players
Space Demand
Colocation pricing
Concentration of infrastructure
Connectivity

ENERGY

Grid reliability
Renewable energy in Brazilian Data Centres
Wind power
Greener view
Data Centre Electricity Cost
Power efficiency awareness for Data Centres

SERVICES

Services segmentation in Brazilian data centres

DEMAND DRIVERS

Favourable business climate
Telecom and IT
Financial sector
Outsourcing acceptability
Regulatory issues

CHALLENGES FOR DATA CENTRE BUSINESS

Power & Cooling
Operation Challenges
Space shortages
Increases in the cost of energy
Optimisation of older equipment
Power cuts
Market Challenge
Policy Challenges
Operation Challenges
Level of Service
Cultural barrier, a challenge for Public sector and state enterprises

CONCLUSIONS

Profile: main companies

Table 1 – Data Centre operators accounted in survey
Table 2 – Map of Brazil
Table 3 – Brazil Economic Indicators
Table 4 – Inflation
Table 5 – Regional Players - Data Centre locations
Table 6 – Data Centres market segmentation in Brazil
Table 7 – Data centre space reportedly available
Table 8 – Pricing colocation Tier II/III in Sao Paulo
Table 9 – Colocation square metre - cost per month
Table 10 – Rack - cost per month
Table 11 – Data Centre investment – Period 2008-10
Table 12 – Data Centre and colocation facilities in Brazil
Table 13 – Wind power potential
Table 14 – Average industrial tariff
Table 15 – Taxing power usage: Composition of tariff
Table 17 – Power costs p/month sample: Captive market costs vs. free market costs
Table 18 – Data Centre PUE
Table 19 – Power & Cooling: Average kW p/hr/p/rack (2010)
Table 20 – Service Delivery Capacity in Brazil
Table 21 – Data Centre Facilities and Total Space in Brazil 2010

Chart 1 – Total Data Centre space in key Latin American cities
Chart 2 – Existing data centre space including under construction expansions 09/2010
Chart 3 – Space Growth Projections
Chart 4 – Key segments of power generation
Chart 5 – Colo vs. MS & Others – 2009
Chart 6 – Colo vs. MS & Others – 2010
Chart 7 – Data Centres customer mix