Latin America is a diverse region in terms of economic development and access to energy. While some countries have well-established energy infrastructure and sufficient generation and distribution capacity, others face challenges in this area. In general, the region has a variety of energy sources, including hydroelectric, thermoelectric, wind, solar and biomass, among others.
However, energy availability is not uniform throughout Latin America. Some countries, such as Brazil, Chile, Argentina and Mexico, have made significant investments in energy infrastructure and can offer a relatively stable and reliable electricity supply. On the other hand, smaller or less developed nations may have less robust power grids and face challenges in terms of generation and/or distribution capacity, and quality of supply.
Impact of Energy Availability in Data Centers
Power availability is a critical factor for the continuous and efficient operation of data centers. These facilities operate 24/7 and require a constant, uninterrupted power supply to maintain data integrity and ensure access to online services.
An unstable or poor power supply can cause data loss, service interruptions, and server hardware damage. These incidents can have significant financial consequences and affect user trust in the platforms hosted in these data centers.
In addition, higher capacity data centers require a large amount of energy to maintain optimal environmental conditions and to power high-power computing equipment. The availability of clean and affordable energy becomes especially relevant in a context where sustainability and carbon footprint reduction are global priorities.
Perspectives for the Implementation of Data Centers in Latin America
Despite the challenges in terms of energy availability, Latin America also presents opportunities for the development of sustainable and efficient data centers. The region has vast renewable energy resources, such as solar power in the Caribbean and Central America, wind power in southern Chile and Argentina, and hydropower in several countries.
The report "Latin America Data Center Construction Market – Industry Outlook and Forecasts 2023-2028" projects that the size of the Latin America data center construction market will reach a value of USD$1.86 billion by 2028 from USD$1.09 billion in 2022, growing at a CAGR of 9.31% during 2023-2028.
Therefore, harnessing these renewable energy sources can help reduce the operating costs of data centers and improve their environmental sustainability. In addition, investments in energy infrastructure, regional interconnections and energy storage could help improve the reliability of electricity supply in countries with energy supply deficiencies.
"The transmission and distribution of energy must be a priority for governments and companies in Latin America. We must work on policies that encourage investment in the development of new electricity network infrastructures to promote new areas of development that allow energy availability and connection," said Juan Carlos Londoño, Pre Sales Director of Ingenium.
It is essential that governments, the private sector and international organizations collaborate to promote policies and strategies that promote energy availability in the region and facilitate investment in Data Centers, especially when electrical failures continue to be the main cause of interruption in Data Centers for operators according to the report UpTime Institute's Global Data Center Survey 2023.
Energy availability is a critical factor for the development and operation of data centers in Latin America. Although the region faces challenges in this area, it also has enormous potential in terms of renewable energy resources. Taking advantage of these opportunities and addressing deficiencies in energy infrastructure is key to ensuring the continuity and success of data centers in the region, thus contributing to economic growth and digital transformation in Latin America.
Despite the above, the UpTime Institute emphasizes that data related to sustainability, and the calculation of related metrics, are irregular at best. Current sustainability reports focus on infrastructure (energy) efficiency rather than reducing carbon emissions.
"While it is true that the energy matrix of Central America and the Caribbean is one of the cleanest in the world, we must work on new tax incentives to promote investment and the development of new renewable energy projects. In addition, other energy options such as green hydrogen, or technological alternatives such as gravity energy storage, especially for Hyperscale Data Centers, could be explored," said Juan Carlos Londoño, Pre Sales Director of Ingenium.
