Colombia Data Center Market - Investment Analysis & Growth Opportunities 2024-2029

MARKET OUTLOOK

The Colombia data center market size will witness investments of USD 890 million by 2029, growing at a CAGR of 8.03% during the forecast period. Colombia is positioned as the fourth-largest economy in Latin America, with Bogota at the forefront of promoting diversified infrastructure. The city is widely open for foreign investments and investments in advanced technologies; the contributions from other cities, such as Medellin, Barranquilla, and Cali, are slated to be significant during the forecast period.

Global cloud operators such as Google, Microsoft, Amazon Web Services (AWS), Tencent, IBM, Oracle, and Huawei Technologies have a presence in the Colombia data center market through local partners and on-ramps. For instance, in March 2023, Amazon Web Services (AWS) and Claro announced the renewal of their five-year cloud services contract to provide customers with cloud solutions from AWS in Colombia.

The Colombian market is swiftly moving towards being a 5G-enabled nation, joining countries such as Brazil and Mexico. Regarding 5G Network Connectivity, Claro, WOM, Telecall, Tigo-Movistar (Millicom-Telefónica), and ETB are some telecom operators deploying commercial 5G networks nationwide. Furthermore, the region has a network of ten operating submarine cables. In addition, the country will witness the launch of four submarine cables connecting the US and other Latin American countries: Caribbean Express (CX), Carnival Submarine Network-1 (CSN-1), Gold Data-1 (GD-1)/Liberty Networks-1 (LN-1), and TAM-1.

KEY HIGHLIGHTS

• According to the Ministry of Commerce, Colombia has 120 Free Trade Zones (FTZs), which include 42 multi-company zones and 78 unique single-company zones. Colombia promotes economic growth through Free Trade Zones (FTZs), accounting for fiscal benefits such as tax cuts during the first five years of operation and a 50% income tax break for new businesses. For instance, the Ruta N complex in Medellín is a booming hub for ICT enterprises and local innovations.
• Colombia harnesses a rich mix of renewable energy, led by hydropower (constituting approximately 70% of its energy mix). The country, striving for a carbon-neutral future, aims to achieve net-zero greenhouse emissions in its electricity sector by 2050.
• The Colombian government, in agriculture, education, healthcare, telecom, BFSI, and other public sectors, is adopting AI technology to enhance infrastructure, process monitoring, and automation. For instance, SoftBank unveiled e-kakashi, a pioneering AI technology that is improving Colombian agriculture with the help of IDB Lab's Smart Rice Farming project.
• In Colombia, some government organizations and public and private entities have joined forces to overcome the labor shortage and improve personal skills. In November 2023, Amazon launched the AI Ready initiative, offering free generative AI training, scholarships, and collaborations with Code.org. The company’s initiative will equip two million people globally with crucial skills in generative AI and cloud computing by 2025.

WHY SHOULD YOU BUY THIS RESEARCH?

• Market size is available regarding investment, area, power capacity, and Colombia colocation market revenue.
• An assessment of the data center investment in Colombia by colocation, hyperscale, and enterprise operators.
• Investments in the area (square feet) and power capacity (MW) across cities in the country.
• A detailed study of the existing Colombia data center market landscape, an in-depth market analysis, and insightful predictions about data center market size during the forecast period.
• Snapshot of existing and upcoming third-party data center facilities in Colombia
• Facilities Covered (Existing): 20
• Facilities Identified (Upcoming): 10
• Coverage: 05+ Cities
• Existing vs. Upcoming (Area)
• Existing vs. Upcoming (IT Load Capacity)
• Data Center Colocation Market in the Colombia
• Market Revenue & Forecast (2023-2029)
• Retail Colocation Pricing
• The Colombia data center market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
• A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the market.
• Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the market.
• A transparent research methodology and the analysis of the demand and supply aspects of the market.

VENDOR LANDSCAPE

• In the Colombia data center market, Bogota is the major location for data center investments; the city is experiencing remarkable growth in construction due to the continuous expansion and development of data center facilities. Around 80% of the existing facilities operate in the capital city of Colombia, Bogota. In terms of upcoming data center investments, more than 85% of the investments are witnessed in Bogota, and the remaining investments are in Barranquilla.
• The Colombia data center market accounts for the presence of ODATA, Equinix, Cirion Technologies, GlobeNet, Gtd Colombia, Etix Everywhere, and HostDime data center facilities.
• In 2023, the country witnessed investments from new entrants such as KIO Networks, Scala Data Centers, Ascenty, DHAMericas, and EdgeConneX.
• Ascenty, the largest data center service provider in Latin America, is entering the Colombia data center market by developing two data center facilities, Bogota 1 and Bogota 2.
• DHAmericas is developing the first data center campus in the Bogota Metropolitan Region, Colombia. The data center will be in Zona Franca Occidente (ZFO), a fully secure economic free zone. In addition, DHAmericas is planning to develop around five data center facilities in Bogota; these centers are slated to be operational in the next five to six years. 
• The Colombia data center market has local and global construction contractors catering to major market operators. For instance, ZFB Group successfully built the Zetta data center complex within the Bogota Free Trade Zone (FTZ).

EXISTING VS. UPCOMING DATA CENTERS

• Existing Facilities in the Region (Area and Power Capacity)
• Bogota
• Other Cities
• List of Upcoming Facilities in the Region (Area and Power Capacity)

REPORT COVERAGE:

This report analyses the Colombia data center market share. It elaboratively analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, general construction, and tier standards. It discusses market sizing and investment estimation for different segments. The segmentation includes:

• IT Infrastructure
• Servers
• Storage Systems
• Network Infrastructure
• Electrical Infrastructure
• UPS Systems
• Generators
• Switches & Switchgear
• PDUs
• Other Electrical Infrastructure
• Mechanical Infrastructure
• Cooling Systems
• Racks
• Other Mechanical Infrastructure
• Cooling Systems
• CRAC and CRAH Units
• Chillers Units
• Cooling Towers, Condensers, and Dry Coolers
• Economizers & Evaporative Coolers
• Other Cooling Units
• General Construction
• Core & Shell Development
• Installation & Commissioning Services
• Engineering & Building Design
• Fire Detection & Suppression
• Physical Security
• Data Center Infrastructure Management (DCIM)
• Tier Standard
• Tier I & Tier II
• Tier III
• Tier IV

VENDOR LANDSCAPE

• IT Infrastructure Providers: Arista Networks, Broadcom, Cisco Systems, Dell Technologies, Hewlett Packard Enterprise, Huawei Technologies, IBM, Juniper Networks, Lenovo, NetApp, Oracle, Pure Storage.
• Data Center Construction Contractors & Sub-Contractors: AECOM, Fluor Corporation, ZFB Group, Quark.
• Support Infrastructure Providers: ABB, Alfa Laval, Armstrong Ceiling Solutions, Assa Abloy, Bosch Security and Safety Systems, Caterpillar, Cummins, Delta Electronics, Daikin Applied, Eaton, Honeywell International, Generac Power Systems, Johnson Controls, Legrand, Mitsubishi Electric, Piller Power Systems, Panduit, Rittal, Schneider Electric, Stulz, Siemens, Vertiv.
• Data Center Investors: Claro, Cirion Technologies, Etix Everywhere, EdgeUno, Equinix, GlobeNet, Gtd Colombia, HostDime, IPXON Networks, KIO Networks, ODATA (Aligned Data Centers).
• New Entrants: Ascenty, DHAmericas, EdgeConneX, and Scala Data Centers.