Latin America Data Center Rack Market
Latin America Data Center Rack Market by Rack Type (Open Frame, Enclosed), Rack Category (Server, Network), Rack Height (=42U, 43U–52U), Rack Width (19”, 23”), and Data Center Type (Enterprise, Colocation, Hyperscale) – Forecast to 2032
OVERVIEW
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
The Latin America data center rack market is primarily driven by concentrated demand in Brazil and Mexico, fueled by hyperscale, colocation, and large enterprise data center expansions. The growth in this market is attributed to increasing IT load densities, a greater adoption of standardized and high-capacity racks, and a steady shift toward cloud and digital platforms. The market is projected to grow from USD 0.35 billion in 2025 to USD 0.93 billion by 2032, at a CAGR of 14.9% during the forecast period.
KEY TAKEAWAYS
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By CountryMexico is the fastest-growing country in the Latin America data center rack market, growing at a CAGR of 14.9% during the forecast period.
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By OfferingServices are the fastest-growing offering, projected to grow at a CAGR of 15.8% during the forecast period.
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By ServicesSupport & maintenance is the fastest-growing segment, projected to grow at a CAGR of 16.9%.
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By Rack TypeServer racks are the fastest-growing rack type in Latin America.
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By Rack HeightAbove 52U is the fastest-growing segment in the Latin America data center rack market.
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By Rack WidthThe 23-inch racks segment is projected to grow at the faster rate during the forecast period.
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By Data Center SizeSmall and mid-sized data centers segment to witness high growth from 2025 to 2032.
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By Data Center TypeHyperscale data centers are expected to register the highest CAGR in the Latin America data center rack market during the forecast period.
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By Enterprise VerticalsHealthcare is the fastest-growing enterprise vertical in the Latin America data center rack market during the forecast period.
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Competitive Landscape – StarsSchneider Electric, Eaton, and Legrand lead the Latin America data center rack market through global infrastructure scale recovery automation depth and enterprise trust.
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Competitive Landscape – Emerging LeadersRittal, Vertiv, and Datacom are gaining traction in Latin America by offering modular, high-density racks with faster deployment and cost-competitive designs tailored to local power, cooling, and permitting constraints.
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A
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In addition to the main data center hubs in São Paulo and Querétaro, operators throughout Brazil and Mexico are standardizing rack deployments to enhance consistency and scalability. As capacity grows in secondary markets, demand for rack solutions that simplify installation, align with local infrastructure constraints, and support gradual expansion is increasing.
TRENDS & DISRUPTIONS IMPACTING CUSTOMERS' CUSTOMERS
In Brazil and Mexico, data center clusters such as São Paulo and Querétaro are optimizing server rack designs to support increasing demands for higher power density, improved airflow management, and modular rack formats, driven by the rapid growth of hyperscale and colocation facilities in these countries. Clusters in both markets face challenges related to electrical grid connectivity, lengthy and complex permitting processes, and extreme climate conditions that increase thermal loads. As a result, the adoption of standardized, high-capacity rack designs that enable predictable cooling performance, faster deployment cycles, and incremental capacity expansion is becoming critical to building a resilient data center ecosystem across emerging and second-tier markets.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
MARKET DYNAMICS
Level
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Rising deployment of hyperscale, colocation, and AI-ready data centers driving demand for high-density, standardized rack infrastructure
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Increasing focus on operational efficiency, space optimization, and predictable performance at rack level
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High upfront costs associated with advanced rack designs, liquid-cooling readiness, and integrated power distribution
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Constraints from legacy data center layouts limiting adoption of wider or higher-capacity rack formats
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Growing adoption of modular and prefabricated rack solutions to support faster data center buildouts
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Expansion of second-tier and edge data centers creating demand for compact, scalable rack systems
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Managing thermal performance and airflow efficiency as rack power densities increase
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Ensuring compatibility of rack designs with localized power, cooling, and regulatory requirements
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Driver: Rising deployment of hyperscale, colocation, and AI-ready data centers driving demand for high-density, standardized rack infrastructure
Rapid growth of hyperscale and colocation facilities is increasing rack-level power and heat densities. Operators are prioritizing standardized, high-capacity racks to support scalable IT loads, improve deployment speed, and ensure predictable performance across large data center footprints.
Restraint: High upfront costs associated with advanced rack designs, liquid-cooling readiness, and integrated power distribution
High-density racks often require reinforced structures, advanced containment, and liquid-cooling compatibility. These requirements increase capital costs and can slow adoption, particularly for enterprises upgrading legacy facilities or operating under tight infrastructure budgets.
Opportunity: Growing adoption of modular and prefabricated rack solutions to support faster data center buildouts
Modular rack systems enable faster installation, phased capacity expansion, and reduced on-site integration complexity. This creates opportunities for vendors offering pre-configured, vendor-agnostic rack platforms aligned with rapid hyperscale and colocation expansion cycles.
Challenge: Managing thermal performance and airflow efficiency as rack power densities increase
As rack power levels rise, maintaining effective airflow and thermal control becomes increasingly complex. Inadequate containment or cooling integration can create hotspots, limit rack utilization, and increase operational risk in high-density environments.
LATIN AMERICA DATA CENTER RACK MARKET: COMMERCIAL USE CASES ACROSS INDUSTRIES
| COMPANY | USE CASE DESCRIPTION | BENEFITS |
|---|---|---|
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Telefónica's high-density data center has been assisted by Schneider Electric with rack infrastructure based on EcoStruxureIT (real-time environmental monitoring), designed to support maximum loads of 14 kW per rack. | Improvements in rack reliability, ease of both scalability and use of energy for both rack expansions and rack deployment at high-density have been achieved using Schneider Electric’s EcoStruxureIT-enabled rack infrastructure |
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WWT’s Advanced Technology Center has deployed Vertiv’s high-capacity rack PDUs to scale AI workloads across more than 500 client racks that require scalable, monitored, and high-density rack-level power distribution | Reduced high-density power delivery reliability and load balancing while improving real-time monitoring and supporting fast scalability of AI infrastructure |
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Rittal modernized SUISA’s legacy data center by installing TS IT racks with liquid cooling, enabling rack-level heat dissipation without structural changes and supporting higher rack densities | Improved energy efficiency, supported up to 55 kW per rack, reduced cooling footprint, enhanced monitoring, and enabled sustainable high-density rack operations |
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET ECOSYSTEM
The Latin America data center rack market ecosystem comprises several key players. These include companies that manufacture and supply core rack systems, those that produce accessories for power, cooling, and cable management to integrate into the core rack systems, and companies that offer physical security solutions for controlling and monitoring access to the racks. Together, these companies collaborate to deliver scalable, secure, and high-density data center deployments.
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET SEGMENTS
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
By Offering
Solutions lead as hyperscalers and large colocation providers in Latin America prioritize rapid, standardized rack procurement to accelerate regional cloud rollouts, where hardware-led expansion is favored over service-heavy engagement models.
By Services
Installation & deployment dominates because hyperscale and colocation builds rely heavily on local integrators for rapid rack assembly and commissioning, especially in emerging markets where speed-to-live outweighs long-term managed service contracts.
By Rack Type
Server racks hold the largest share of data center demand in Latin America, driven by compute-intensive cloud and digital workloads. In contrast, network architectures are more centralized, which limits proportional growth in network-only rack deployments.
By Rack Height
42U and below racks dominate because most Latin American facilities are designed for standard-density deployments, enabling faster installation, simpler cooling, and easier retrofitting across colocation and enterprise data centers.
By Rack Width
19-inch racks are becoming the standard as hyperscalers and colocation operators adopt globally compatible infrastructure. This simplifies the integration of imported servers and reduces procurement and deployment risks across multi-country operations in Latin America.
By Data Center Size
Large data centers dominate as hyperscalers and colocation providers consolidate capacity into a few regional hubs, deploying racks at scale to serve cross-border workloads from Brazil, Mexico, and Chile.
By Data Center Type
Hyperscale data centers are driving rack demand as cloud providers expand in Latin America, requiring high-volume, uniform rack deployments to support cloud adoption, AI workloads, and regional digital platform growth.
By Enterprise Verticals
BFSI leads enterprise demand as banks and fintechs deploy dedicated racks in colocation facilities to support real-time payments, digital banking, and regulatory compliance, particularly in Brazil and Mexico’s tightly regulated markets.
REGION
Mexico to be fastest-growing country in Latin America data center rack market during forecast period
The data center rack market in Mexico is projected to grow at the fastest rate in Latin America through 2032. The main regions driving demand for rack infrastructure are Querétaro and Monterrey. By 2025, the volume of new datasets generated in these two areas will account for a significant portion of total new rack deployments. Most of these new deployments are expected to feature standardized, high-density, and modular configurations.
LATIN AMERICA DATA CENTER RACK MARKET: COMPANY EVALUATION MATRIX
The company evaluation matrix places Schneider Electric in the Stars quadrant due to its strong market presence and extensive data center rack portfolio. IBM is categorized as an Emerging Leader, highlighting its growing impact through enterprise-focused, rack-integrated infrastructure solutions.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
KEY MARKET PLAYERS
- Schneider Electric (France)
- Legrand (France)
- Cisco (US)
- Vertiv (US)
- Powercom Brasil (Brazil)
- Eaton (Ireland)
- Dell Technologies (US)
- Hewlett Packard Enterprise (US)
- Rittal (Germany)
- CommScope (US)
- Oracle (US)
- Belden (US)
- Panduit (US)
- nVent (UK)
- Lenevo (China)
MARKET SCOPE
| REPORT METRIC | DETAILS |
|---|---|
| Market Size in 2025 (Value) | USD 0.35 Billion |
| Market Forecast in 2032 (Value) | USD 0.93 Billion |
| Growth Rate | CAGR of 14.9% from 2025–2032 |
| Years Considered | 2020–2032 |
| Base Year | 2024 |
| Forecast Period | 2025–2032 |
| Units Considered | Value (USD Million) |
| Report Coverage | Revenue Forecast, Company Ranking, Competitive Landscape, Vendor Positioning, Segment-wise Analysis, Regional Trends, Technological Developments, Key Commercial Use Cases, and Growth Factors |
| Segments Covered |
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| Country Covered | Brazil, Mexico, Rest of Latin America |
WHAT IS IN IT FOR YOU: LATIN AMERICA DATA CENTER RACK MARKET REPORT CONTENT GUIDE
DELIVERED CUSTOMIZATIONS
We have successfully delivered the following deep-dive customizations:
| CLIENT REQUEST | CUSTOMIZATION DELIVERED | VALUE ADDS |
|---|---|---|
| Hyperscale and Colocation Operators in Latin America (Brazil, Mexico) |
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Improve rack selection aligned to hyperscale design standards |
| Enterprise Data Center Operators in Latin America (BFSI, Telecom, Government) |
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Enable space-efficient rack planning and upgrade decisions |
| Data Center Developers and EPC Firms in Latin America |
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Support faster project design and scalable infrastructure rollout |
RECENT DEVELOPMENTS
- December 2025 : Grupo Datco and Vertiv have formed a strategic alliance to enhance the availability of Vertiv’s High-Density Rack Solutions for customers in Argentina and Chile. This partnership aims to strengthen local capabilities in delivering, supporting, and deploying AI-Ready Rack Infrastructure throughout the Southern Cone of Latin America.
- October 2025 : Eaton has once again announced its collaboration with NVIDIA to develop an AI Ready Rack Infrastructure designed to support megawatt-scale deployments. This partnership aims to create a high-voltage DC power architecture and specialized rack power distribution designs specifically for high-density GPU systems and the next generation of data centers that will handle AI workloads.
- July 2025 : Eaton has partnered with NVIDIA to create infrastructure for artificial intelligence (AI) that features racks capable of operating at megawatt levels. This is achieved using multiple racks of high-voltage direct current (DC) power architectures along with various distribution systems. These setups will enable the simultaneous use of multiple GPUs within the same data center, supporting the development of next-generation AI solutions.
Table of Contents
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Methodology
The study involved 4 major activities in estimating the current size of the Latin America Data Center Rack Market. Exhaustive secondary research was done to collect information on the market, peer market, and parent market. The next step was to validate these findings, assumptions, and sizing with the industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, market breakup and data triangulation were used to estimate the market size of segments and subsegments.
Secondary Research
In the secondary research process, various secondary sources, such as Bloomberg and BusinessWeek, have been referred for, to identify and collect information for this study. The secondary sources included annual reports; press releases; and investor presentations of companies, white papers, and journals; and certified publications and articles from recognized authors, directories, and databases.
Primary Research
Various primary sources from both supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side included industry experts, such as Chief Executive Officers (CEOs), Chief Marketing Officers (CMO), Vice Presidents (VPs), Managing Directors (MDs), technology and innovation directors, and related key executives from various key companies and organizations operating in the Latin America Data Center Rack Market along with the associated service providers, and system integrators operating in the targeted regions. All possible parameters that affect the market covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. Following is the breakup of primary respondents:
Market Size Estimation
For making market estimates and forecasting the Latin America Data Center Rack Market, and the other dependent submarkets, top-down and bottom-up approaches were used. The bottom-up procedure was used to arrive at the overall market size of the global Latin America Data Center Rack Market using key companies’ revenue and their offerings in the market. The research methodology used to estimate the market size includes the following:
- The key players in the market have been identified through extensive secondary research.
- The market size, in terms of value, has been determined through primary and secondary research processes.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
Data Triangulation
With data triangulation and validation through primary interviews, the exact value of the overall parent market size was determined and confirmed using this study. The overall Latin America Data Center Rack Market size was then used in the top-down procedure to estimate the size of other individual markets via percentage splits of the market segmentation.
Report Objectives
- To define, describe, and forecast the Latin America Data Center Rack Market by form factor, service, tier type, data center type, vertical, and region
- To provide detailed information about the major factors (drivers, restraints, opportunities, and industry-specific challenges) influencing the growth of the market
- To analyze the market with respect to individual growth trends, prospects, and contributions to the market
- To forecast the market size of 4 main regions, namely, North America, Europe, Asia Pacific (APAC) and RoW
- To analyze the opportunities in the market for stakeholders by identifying the high-growth segments of the market
- To profile the key players in the Latin America Data Center Rack Market and comprehensively analyze their core competencies in each subsegment
- To analyze the competitive developments, such as new product launches and product enhancements, partnerships, collaborations, and acquisitions
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