South America Data Center Outsourcing Infrastructure Utility Services Market Research Report By Service Type (Cloud Services, Managed Hosting Services, Colocation Services, Data Center Migration Services, Disaster Recovery Services), By Deployment Type (Public Cloud, Private Cloud, Hybrid Cloud), By End Use Industry (IT and Telecommunications, BFSI, Healthcare, Retail, Government), By Operational Model (Capex, Opex, Subscription) and By Regional (Brazil, Mexico, Argentina, Rest of South America)- Forecast to 2035

South America Data Center Outsourcing Infrastructure Utility Services Market Overview

As per MRFR analysis, the South America Data Center Outsourcing Infrastructure Utility Services Market Size was estimated at 6.33 (USD Billion) in 2023. The South America Data Center Outsourcing Infrastructure Utility Services Market is expected to grow from 6.77(USD Billion) in 2024 to 14.52 (USD Billion) by 2035. The South America Data Center Outsourcing Infrastructure Utility Services Market CAGR (growth rate) is expected to be around 7.183% during the forecast period (2025 - 2035).

Key South America Data Center Outsourcing Infrastructure Utility Services Market Trends Highlighted

In South America, the Data Center Outsourcing Infrastructure Utility Services Market is experiencing notable trends driven by several factors. One significant driver is the increasing demand for digital transformation across various industries, particularly in sectors such as e-commerce, finance, and healthcare. This demand is pushing businesses to seek reliable and scalable data center services for improving operational efficiency. Additionally, government initiatives aimed at enhancing digital infrastructure are catalyzing investments in data centers, further boosting the outsourcing market. 

The region benefits from a growing awareness of energy efficiency, prompting companies to adopt more sustainable practices, thereby increasing interest in utility services that emphasize green solutions.Stakeholders in the South American data center market have a lot of chances right now. The need for strong outsourcing solutions has grown as more people work from home and use online services. 

Businesses are looking into working with local service providers to help them manage their data. This encourages collaboration and new ideas in the region. Because of the focus on following local rules about data privacy and protection, there is also a growing need for specialized outsourcing services that meet these needs. Recent trends show that more and more South American data centers are using advanced technologies like cloud computing and virtualization.

Businesses are increasingly seeking flexible infrastructure to support their changing demands. The emphasis on reducing latency and improving connectivity is leading to investments in edge computing solutions. Furthermore, the ongoing economic recovery in several South American countries is driving businesses to bolster their digital capabilities, making this market an essential area for growth in the coming years.

Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review

South America Data Center Outsourcing Infrastructure Utility Services Market Drivers

Growing Demand for Cloud Computing Services

The South America Data Center Outsourcing Infrastructure Utility Services Market is heavily driven by the increasing demand for cloud computing services. As businesses across sectors in South America recognize the agility and scalability offered by cloud solutions, organizations such as Amazon Web Services and Microsoft Azure are expanding their operations in this region. 

According to the Brazilian Internet Association, approximately 73% of Brazilian companies have adopted some form of cloud services, up from 55% in 2020.This substantial shift demonstrates a growing reliance on cloud platforms, which subsequently propels the demand for data center infrastructure to support these services. As more enterprises migrate to cloud solutions, the South America Data Center Outsourcing Infrastructure Utility Services Market is poised for accelerated growth, creating opportunities for service providers in the region to capture a larger share of this evolving market.

Digital Transformation and Industry 4.0 Adoption

The trend of digital transformation across industries in South America significantly influences the South America Data Center Outsourcing Infrastructure Utility Services Market. As companies adopt Industry 4.0 technologies, including the Internet of Things (IoT) and Artificial Intelligence (AI), there is a growing need for robust data processing and storage facilities. 

According to a study by the National Confederation of Industry in Brazil, 68% of Brazilian manufacturers are investing in digital transformation initiatives, leading to an increased demand for secure and efficient data management solutions.This necessitates outsourcing data center services, which presents a robust opportunity for market players, stimulating expansion in infrastructure services.

Government Initiatives and Investment Incentives

Government policies in South America increasingly favor the growth of the data center industry through various initiatives and investment incentives. For instance, the Brazilian government has launched tax incentive programs aimed at technology firms investing in infrastructure development. 

According to the Ministry of Science, Technology, Innovations, and Communications, the Brazilian government aims to position the country as a leading technology hub in Latin America.This proactive approach is critical in fostering a conducive environment for the South America Data Center Outsourcing Infrastructure Utility Services Market to flourish, attracting both local and international players to set up data centers and outsourcing operations in emerging technological regions.

Increasing Cybersecurity Concerns

With the rise in digital transactions and data management, cybersecurity has become a top priority for businesses in South America. According to the Latin American Cybersecurity Study, cyber-attacks in the region have increased by 50% over the last three years, necessitating investment in secure data centers. 

The growing recognition of cybersecurity threats is driving companies to outsource their data center services to those with advanced security measures and compliance capabilities, positively impacting the South America Data Center Outsourcing Infrastructure Utility Services Market.Established organizations like IBM and Cisco are capitalizing on these concerns by introducing state-of-the-art security solutions tailored for the South American landscape.

South America Data Center Outsourcing Infrastructure Utility Services Market Segment Insights

Data Center Outsourcing Infrastructure Utility Services Market Service Type Insights

The South America Data Center Outsourcing Infrastructure Utility Services Market is evolving rapidly, particularly in the area of Service Type, which is driving significant change within the industry. With an impressive array of services, this market encompasses various segments such as Cloud Services, Managed Hosting Services, Colocation Services, Data Center Migration Services, and Disaster Recovery Services. Cloud Services represent one of the most significant areas of market growth, driven by the increasing demand for scalable and flexible IT resources among businesses of all sizes. Companies are opting for cloud solutions to enhance their operational efficiency and reduce infrastructure costs, making it a crucial aspect of the South America Data Center Outsourcing Infrastructure Utility Services Market landscape. 

Managed Hosting Services also play an important role, as they provide businesses with the infrastructure and management support necessary to focus on their core operations while ensuring optimum server performance and security. This segment caters to enterprises seeking to entrust their resources to experienced providers, enhancing reliability and uptime. Colocation Services have gained traction as well, as organizations find greater value in housing their servers in secure, professionally managed facilities while also lowering energy and maintenance costs. This service offers businesses the opportunity to scale as their needs grow without the burden of owning physical infrastructure. 

Meanwhile, Data Center Migration Services are becoming essential for firms aiming to transition from legacy systems to modern solutions, particularly as South American businesses upgrade their technology to stay competitive. Efficient migration minimizes downtime and ensures smoother transitions. Lastly, Disaster Recovery Services hold substantial importance, particularly in a region susceptible to natural disasters. 

Companies are increasingly prioritizing robust disaster recovery strategies to ensure business continuity, safeguarding data and infrastructure against unforeseen disruptions. Overall, each of these services contributes to a holistic view of the South America Data Center Outsourcing Infrastructure Utility Services Market, providing solutions that enhance operational efficiencies, reduce risk, and support business growth amidst a dynamic technological landscape, reinforcing the relevance of data-driven strategies in the region.

Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review

Data Center Outsourcing Infrastructure Utility Services Market Deployment Type Insights

The Deployment Type segment of the South America Data Center Outsourcing Infrastructure Utility Services Market reveals substantial insights into the evolving landscape of data management and storage solutions. The Public Cloud segment signifies growing adoption due to its cost-effectiveness and scalability, appealing greatly to small and medium-sized enterprises. This segment is essential as it enables businesses to efficiently manage data without heavy initial investments in infrastructure. 

On the other hand, the Private Cloud segment caters to organizations needing customized solutions to ensure enhanced security and control, which is vital in sectors such as finance and healthcare.The Hybrid Cloud model gains traction as it combines the best features of both Public and Private Clouds, allowing companies to maintain critical data on a Private Cloud while utilizing the Public Cloud for less sensitive operations. 

Such strategic flexibility is increasingly attractive amidst changing market conditions in South America, facilitating innovation while meeting regulatory demands. Moreover, the rise in digital transformation initiatives across the region further underscores the importance of these Deployment Types, as businesses look to leverage cloud solutions for agility and competitive advantage in an ever-evolving digital landscape.

Data Center Outsourcing Infrastructure Utility Services Market End Use Industry Insights

The End Use Industry segment of the South America Data Center Outsourcing Infrastructure Utility Services Market plays a crucial role in shaping the landscape of the region's digital ecosystem. With the rapid digitization across various sectors, businesses in IT and Telecommunications are increasingly relying on robust data center services to enhance performance and uptime. The BFSI sector, characterized by its high demand for secure and efficient data management solutions, significantly benefits from outsourcing as it ensures compliance and reduces operational risks.

Healthcare institutions are leveraging data centers to store vast amounts of patient data while ensuring privacy and accessibility, crucial in today's data-driven environment. Retail businesses are increasingly adopting cloud-based solutions to manage inventory and customer data, enhancing the shopping experience and operational efficiency. Governments are also embracing data center outsourcing to modernize their IT infrastructure, streamline operations, and promote digital inclusivity. The synergy among these industries drives substantial growth in the South America Data Center Outsourcing Infrastructure Utility Services Market, reflecting a diverse demand landscape that influences strategic investments and technological advancements.

Data Center Outsourcing Infrastructure Utility Services Market Operational Model Insights

The Operational Model segment within the South America Data Center Outsourcing Infrastructure Utility Services Market plays a crucial role in shaping the industry landscape, reflecting evolving business needs and technological advancements. The segment is characterized by three primary approaches: Capital Expenditure (Capex), Operational Expenditure (Opex), and Subscription models. Capex is significant as it allows organizations to invest upfront in physical infrastructure, providing control over their assets and long-term value. 

Conversely, the Opex model has gained traction due to its flexibility, enabling organizations to manage costs more effectively while adapting to rapid market changes.This approach minimizes the financial burden of large initial investments. Meanwhile, Subscription models are becoming increasingly popular, catering to businesses seeking scalability and predictable costs. The rise of these models is driven by the need for enterprises to leverage cloud technologies and enhance operational efficiencies. 

As South America’s digital economy expands, the emphasis on these operational frameworks underscores the importance of aligning data center services with modern business strategies, ensuring organizations remain competitive in a dynamic environment.Overall, the segmentation within this Operational Model reflects a diverse approach to addressing the varying needs of businesses across South America.

Data Center Outsourcing Infrastructure Utility Services Market Regional Insights

The South America Data Center Outsourcing Infrastructure Utility Services Market is characterized by a rapidly evolving landscape across different regions, each contributing to its growth and development. Brazil leads the charge, showcasing a robust investment climate and technological advancement that positions it as a major player in the data center sector. Mexico follows closely, benefiting from an increasing demand for cloud services and enhanced connectivity that supports its burgeoning IT infrastructure. 

Argentina’s growth stems from a burgeoning digital ecosystem, leveraging rich local talent and governmental focus on technology adoption, while the Rest of South America, encompassing countries like Chile and Colombia, showcases significant potential due to increasing foreign investments and improved regulatory frameworks.This regional segmentation highlights the unique opportunities and trends specific to each market, with Brazil and Mexico exhibiting a dominating presence due to their larger economies and technological infrastructures. 

The growth drivers across these regions include increasing internet penetration, the rise of digital transformation initiatives, and a shift towards outsourcing functions to optimize operational efficiency. South America's distinct economic dynamics and shifting consumer behaviors serve as both challenges and opportunities, pushing the industry to innovate and adapt.

Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review

South America Data Center Outsourcing Infrastructure Utility Services Market Key Players and Competitive Insights

The South America Data Center Outsourcing Infrastructure Utility Services Market is characterized by its dynamic landscape, marked by rapid technological advancements and a growing demand for efficient data management solutions. As businesses increasingly rely on cloud services and digital infrastructure, the competition in this sector has intensified, with companies striving to offer comprehensive solutions that meet the evolving needs of enterprises across various industries. The market is further shaped by regulatory developments, economic factors, and the distinct demands of the South American region, which presents both opportunities and challenges for service providers aiming to enhance their market presence and secure competitive advantages.

Oracle has solidified its position as a key player in the South America Data Center Outsourcing Infrastructure Utility Services Market by leveraging its robust portfolio of cloud computing technologies and database management solutions. With its advanced infrastructure offerings, Oracle enables organizations to manage their data efficiently while ensuring security and scalability. The company’s strong brand reputation and extensive experience in the technology sector empower it to cater to a diverse clientele, from small businesses to large enterprises. 

Additionally, Oracle’s commitment to research and development ensures it consistently delivers innovative solutions tailored to local market demands, thus fortifying its competitive edge in South America.TIVIT is another prominent name in the South America Data Center Outsourcing Infrastructure Utility Services Market, known for its comprehensive range of IT services, including cloud solutions, managed services, and data center facilities. With a focused presence across key South American countries, TIVIT offers tailored solutions that address the specific needs of local businesses. The company's strength lies in its customer-centric approach, which emphasizes understanding client requirements and providing personalized service. 

TIVIT has invested strategically in infrastructure development and technology upgrades, allowing it to enhance its service delivery and operational efficiency. Furthermore, through key mergers and acquisitions, TIVIT has expanded its capabilities, enabling it to position itself as a leading provider of integrated services, thus strengthening its foothold in the competitive landscape of data center outsourcing in the region.

Key Companies in the South America Data Center Outsourcing Infrastructure Utility Services Market Include:

Oracle

• TIVIT
• Grupo V.T.T.
• Amazon Web Services
• Atos
• Ascenty
• HostDime
• Claranet
• UOL Diveo
• IBM
• Datacenter365
• Microsoft
• Equinix
• Google Cloud

South America Data Center Outsourcing Infrastructure Utility Services Market Developments

Recent developments in the South America Data Center Outsourcing Infrastructure Utility Services Market have been significantly shaped by advancements and strategic maneuvers among key players. Oracle is enhancing its cloud services, responding to the rising demand for data protection and compliance. TIVIT, a major regional player, continues to expand its cloud solutions to meet local market needs. 

In a noteworthy transaction, Atos acquired a leading cloud service provider in August 2023, further consolidating its position in the market. Ascenty has also made strides with new data centers being launched in Brazil, reflecting the growing demand for reliable services in the region. In terms of market growth, Amazon Web Services and Microsoft are leading the charge, with projections indicating a robust increase in investments in infrastructure. 

Not only have major companies like Google Cloud and IBM significantly expanded their offerings, but UOL Diveo has also reported a spike in service demand resulting from increased digital transformation efforts across various sectors in South America. Overall, these advancements are indicative of a rapidly evolving market, driven by both local needs and the integration of global technology trends, ensuring that the Data Center Outsourcing Infrastructure Utility Services sector remains dynamic in South America.

South America Data Center Outsourcing Infrastructure Utility Services Market Segmentation Insights

Data Center Outsourcing Infrastructure Utility Services Market Service Type Outlook

• Cloud Services
• Managed Hosting Services
• Colocation Services
• Data Center Migration Services
• Disaster Recovery Services

Data Center Outsourcing Infrastructure Utility Services Market Deployment Type Outlook

• Public Cloud
• Private Cloud
• Hybrid Cloud

Data Center Outsourcing Infrastructure Utility Services Market End Use Industry Outlook

• IT and Telecommunications
• BFSI
• Healthcare
• Retail
• Government

Data Center Outsourcing Infrastructure Utility Services Market Operational Model Outlook

• Capex
• Opex
• Subscription

Data Center Outsourcing Infrastructure Utility Services Market Regional Outlook

• Brazil
• Mexico
• Argentina
• Rest of South America

 

Report Attribute/Metric Source:	Details
MARKET SIZE 2023	6.33(USD Billion)
MARKET SIZE 2024	6.77(USD Billion)
MARKET SIZE 2035	14.52(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	7.183% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	Oracle, TIVIT, Grupo V.T.T., Amazon Web Services, Atos, Ascenty, HostDime, Claranet, UOL Diveo, IBM, Datacenter365, Microsoft, Equinix, Google Cloud
SEGMENTS COVERED	Service Type, Deployment Type, End Use Industry, Operational Model, Regional
KEY MARKET OPPORTUNITIES	Increased cloud adoption, Expansion of 5G networks, Rising demand for hybrid solutions, Growing focus on sustainability, Enhanced cybersecurity services
KEY MARKET DYNAMICS	growing cloud adoption, increasing data privacy regulations, rising demand for scalability, focus on energy efficiency, cost optimization strategies
COUNTRIES COVERED	Brazil, Mexico, Argentina, Rest of South America