Brazil Datacenter - Overview

7/28/2019 Brazil Datacenter - Overview

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Brazil Datacenter MarketAn Overview

June 2013

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Summary

Brazil is one of the emerging locations for data centers. This is driven by the rapidly growing internet consumer base,

better telecommunication infrastructure and availability of low cost skilled talent

Sao Paulo is the 1st choice for MNCs to establish data centers in Brazil. Over 80% of the data centers in Brazil are

based in Sao Paulo. MNCs with multiple data centers in Brazil have at least 1 data center in Sao Paulo. The city has

over 24,000 sq.mt. of rack space and over 2,000 people with data center related skills

Presence of IT Companies:

HP, IBM and Terremark have data center operations in Brazil for over a decade. These companies have more than one

data center in the country. Key services provided from data centers in Brazil include Mainframe and Open Source

Technologies, Infrastructure Support, Disaster Recovery Management and Cloud Services

Other MNCs present : Capgemini-EMC, Tivit, Dell, Amazon

Presence of Online Companies:

Top online companies such as Google, Yahoo, Facebook, Twitter and LinkedIn have not set up data centers in Brazil.

Google is setting up its first Latin American data center in Chile. This is expected to be operational by the end of 2013

Amazon Web Services is the only online company to set-up a data center in So Paulo in 2011.

Key Challenges faced in Data Center Set-Up:

High Energy Costs: Energy or Electrical cost in Brazil is about 60% higher than that the US.

Inadequate Data Security Policies:Data security concerns are higher in Brazil due to the lack of interoperability,

portability and data security policies and standards in the country. Brazilian legislation also lacks a Trans-Border

convention given the absence of general and sector-specific rules. The introduction of Brazil Data Protection Draft,

2011 is expected to alleviate most of the data security concerns in the coming years

High Tax Rates: Compared to other global locations the cost of setting up a data center in Brazil is higher; Taxes

account for about 25% of the total set-up costs

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No Direct Incentives for Data Center set-up: The government does not offer any specific incentives for setting-up

data centers. However some indirect benefits exist such as

reduction of import duties on networking equipment

lower inspection operation tax

Tier 2 cities such Belo Horizonte and Porto Alegre have reduced property tax by 30% -50% for companies

setting up operations

and tax and financial incentives for companies that are willing to set-up their development and service centers

in Software and Technology Parks

Lack of Green Initiatives: Currently there is a lack of thrust from the government for Green data center initiatives

Conclusion

Compared to other global locations, Brazil ranks very low in terms of suitability for setting-up data centers. Countries

such as China, India and Russia are ranked higher than Brazil

High tax rates, increasing energy costs and lack of data security policies is a deterrent for companies to set-up data

centers in Brazil

However, reasons such as customer connect and availability of low cost skilled talent is expected to establish Brazil as

a key hub for data center activities in Latin America

Summary

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This is a summary report.

For more information , Please contact us at

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Key data center locations in BrazilSo Paulo has the highest number of data centers and talent in Brazil

Note: Only data centers with a minimum headcount of 50 resources is considered

Source: Talent Neuron Analysis

Rio de Janeiro

Belo Horizonte

So Paulo

Curitiba

Porto Alegre

BRAZIL

Estimated Rack space (Sq M)

Number of Data Centers

24000

10

4

4500

2

2

2

6000

4300

5250

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MNCs with Data centers in Brazil and other Latin American countriesWith growing consumer base, large companies are establishing data centers in Latin America

Company Name

Data Center Locations in South America

Brazil Argentina Chile Columbia Costa Rica Mexico Peru

x x x x x x

x x x x x x

x x

x x x x x x

; Source: Talent Neuron Analysis

This is a summary report.For more information , Please contact us at

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Amazon
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520+ Cities~12,000 Unique Data

Points Per City

9 Domains &

400+ Skills

~7,500 Companies &

22 Million Profiles

Module 1: TalentIntelligence Module 2: TalentAnalytics

Location Profiles

Talent Pool (Installed and Fresh)

Salary and Cost

University Peer Companies

Monitor

Role Views

Job Engine

Top Brains

Public People Profiles

HR Data Consolidation

Peer Benchmarking

Decision Support Analytics

Workforce Planning

Skill Circles

Hypotheses Validation

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Talent NeuronTalent Neuron has two module Talent Intelligence and Talent Analytics. Our data spectrum covers

520+ cities, 9 Domains and 400+ skill sets


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Talent Neuron, gathers data from multiple sources

Data Mining from Connectors

Job Sites

Company

Career Sites

Social Media/

Public Profiles

PatentDatabases

Community

Sites

Technology

Contributor List

Universities

Publication/

Journal

Databases

Survey Data from

Companies

Data from Govt./

Industry Bodies

Data from Local

Recruitment

Companies

Data on City level

suitability &Ecosystem

Correlated data

on Talent,

Cost, Peer companies

Talent Neuron PrimaryResearch & Interviews

News Articles & Public

Data Crawling Engine

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For Detailed information on Location, Talent, Cost, Risks, University Information contact

[email protected]

TalentNeuron

Global

LocationProfiles

Global

TalentInsights

GlobalCost &Salary

Insights

UniversityOutlook

PeerCompanies

Monitor

Role View

Job

Engineer

Talent Neuron PlatformTalent Neuron Platform provides granular data for over 520+ cities in 83 countries. It tracks over 12,000 unique data

parameters for a city that spans across location attributes, talent pool size (Domain, Function and Skills), Universities,

Salary and Cost etc.

Source: Talent Neuron Website 11
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