Jun 23

Tremendous Growth in Datacenter Services in Mexico and Other Latin American Nations

datacenters in mexicoLatin America is about to see a double-digit growth over the next four years in the field of datacenter services in Mexico, Venezuela, Colombia and its other countries as businesses in these countries are seeing a profit in outsourcing services of IT infrastructure. According to the latest report by Frost & Sullivan of 16th April, there will be a dazzling growth in all three markets, i.e. Mexico, Venezuela and Colombia through 2017. IMS Research’s report too has pointed out in its report that Latin America’s datacenter service market will top a whooping $1 billion in 2013.

Domestic Demand on Rise

One remarkable thing is this growth in the market of IT infrastructure services is mainly because of the domestic demand. More and more Latin American businesses are outsourcing a wide range of their IT needs. These businesses have realized the power of hosting and colocation services, which are being outsourced in many larger European and American companies for more than ten years who are enjoying faster transitioning. And therefore they too are adapting the same trend because of which nowadays IT service datacenters in Mexico and other countries are enjoying a tremendous growth.

There is also a continuous improvement in the services of these datacenters, which also should be congratulated. Their offers and technologies are undergoing constant commendable upgrading. Demand for dedicated hosting, disaster recovery, security services, storage etc are on growing demand and the IT service companies are fulfilling these demands. A survey by The Uptime Institute says that the budget of datacenter services in Latin America grew by over 10% in 2012, which is approximately double the growth rate in the budget of datacenters in Europe and the US.


As per Frost & Sullivan, IT infrastructure service market in Mexico is going to grow from 2013’s $579.4 million to $899.5 million in 2017. In spite of the widespread gang activities and drug trafficking that have plagued the country, Mexico is successful in maintaining a significantly strong economy and steady growth over last some ten years. This has eventually resulted in giving more opportunities to businesses to develop relations with service providers, thus giving them confidence to outsource nearly all of their non-core IT requirements, just like European and American businesses are doing for long.


Though Venezuela is a small market, its growth is rapid and is worth mentioning, especially in the presence of economy depending on oil and financial hurdles faced currently by the service providers of the country. The prediction of Frost & Sullivan for Venezuelan datacenter service providers is that they will enjoy a double-digit growth, i.e. from 2013’s $103.6 million to $166.6 million in 2017. In Venezuela, cloud computing services are in more demand, that too, particularly monitoring and virtual hosting services.


Colombia is enjoying the fastest growth rate in IT service market in the Latin American region. Frost & Sullivan’s prediction about the country is it will enjoy a 13.3% growth through 2017, i.e. from 2013’s $168.8 million to $309.5 million in 2017. And this enormous growth is from companies based in Medellin or Bogota, though many service providers have started to set up medium-sized service centers in smaller cities too. According to most of the analysts, the country’s growing economy and resulting economic strength should be accredited to the free-market reforms started from the last decade.