Central America leads LATAM data center growth

Power and bandwidth costs are still an issue

24 December 2014 by Peter Judge - DCD

Central America is the hotspot of data center growth in Latin America, although the high costs of bandwidth and power are still hindering the region, according to a new report.

Data center white space has been growing at more than 20 percent in the countries of Central America since 2011, and colocation facilities are also growing fast there, according to Central America Connected: Commercial Data Center Growth Opportunities, a report from Datacenter Dynamics Intelligence. However, the opportunities in the region come with risks, including power and network shortages as well as organized crime.

Know the risks
"The essential lesson for the corporations is to have a strong understanding of the risk involved and a clear internal guideline of risk appetite," says the report.

It points out that, while there is a risk from organized crime, the victims of extortion and ransom kidnapping are far more likely to be local residents and local business owners.

ELectrical power can be a more real problem, as can network connectivity - but DCDi points out that increased competition is improving the network provision in the area.

Within the area, the cloud is well accesspted in Costa Rica and Panama, and beginning to take off in Guatemala, Nicaragua and Honduras, while El Salvador still resists the new model.

Colocation is big in Panama, Costa Rica and Guatemala - but the unreliable infrastructure has created a demand for Tier II plus facilities. Of these, Costa Rica has the benefit of renewable energy, and is becoming a dynamic market.

Get the full report here


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