Brazil’s Data Centers Supporting Demand for GenAI Testing
The 2024 ISG Provider Lens™ report highlights Brazil's growing demand for data centers to support GenAI testing and development. Key points include:
1. Enterprises are moving away from on-premises data centers to managed hosting and colocation facilities.
2. GenAI requires significant energy, prompting plans for solar and wind farms.
3. Hybrid approaches allow data distribution across locations with private links.
4. Market expansion includes new providers, increased floor space, and international investment.
5. Colocation sites offer connectivity to major cloud providers and the Brazilian internet exchange.
6. Software-defined networking (SDN) enables virtual data centers across multiple locations.
The report evaluates 43 providers across four quadrants, naming several Leaders and Rising Stars in the Brazilian market.
Il report 2024 ISG Provider Lens™ evidenzia la crescente domanda di data center in Brasile per supportare il test e lo sviluppo di GenAI. I punti chiave includono:
1. Le aziende si stanno allontanando dai data center on-premise per passare a strutture di hosting gestito e di collocazione.
2. GenAI richiede una quantità significativa di energia, portando a pianificare fattorie solari e eoliche.
3. Approcci ibridi consentono la distribuzione dei dati su più sedi tramite collegamenti privati.
4. L'espansione del mercato include nuovi fornitori, maggiore spazio disponibile e investimenti internazionali.
5. I siti di collocazione offrono connettività ai principali fornitori di cloud e all'exchange internet brasiliano.
6. Il networking definito dal software (SDN) consente data center virtuali in più località.
Il report valuta 43 fornitori in quattro quadranti, nominando diversi Leader e Rising Stars nel mercato brasiliano.
El informe 2024 ISG Provider Lens™ destaca la creciente demanda de centros de datos en Brasil para apoyar las pruebas y el desarrollo de GenAI. Los puntos clave incluyen:
1. Las empresas se están alejando de los centros de datos locales para optar por instalaciones de alojamiento gestionado y colocalización.
2. GenAI requiere una gran cantidad de energía, lo que impulsa planes para granjas solares y eólicas.
3. Los enfoques híbridos permiten la distribución de datos entre diferentes ubicaciones mediante enlaces privados.
4. La expansión del mercado incluye nuevos proveedores, mayor espacio disponible e inversión internacional.
5. Los sitios de colocalización ofrecen conectividad con los principales proveedores de nube y el intercambio de internet brasileño.
6. La red definida por software (SDN) habilita centros de datos virtuales en múltiples ubicaciones.
El informe evalúa a 43 proveedores en cuatro cuadrantes, nombrando varios Líderes y Estrellas Emergentes en el mercado brasileño.
2024 ISG Provider Lens™ 보고서는 브라질의 데이터 센터에 대한 증가하는 수요를 강조하여 GenAI 테스트 및 개발을 지원하고 있습니다. 주요 내용은 다음과 같습니다:
1. 기업들이 온프레미스 데이터 센터에서 벗어나고 있습니다 관리형 호스팅 및 컬로케이션 시설로.
2. GenAI는 상당한 에너지를 요구하며, 태양광 및 풍력 발전소 계획을 촉진합니다.
3. 혼합 접근 방식은 데이터 분산을 여러 위치로 허용합니다 개인 링크를 통해.
4. 시장 확장은 새로운 공급자, 증가된 바닥 공간, 국제 투자 등을 포함합니다.
5. 컬로케이션 사이트는 주요 클라우드 공급자 및 브라질 인터넷 교환에 대한 연결성을 제공합니다.
6. 소프트웨어 정의 네트워킹(SDN)은 여러 위치에 분산된 가상 데이터 센터를 가능하게 합니다.
이 보고서는 네 개의 쿼드런트에서 43개의 공급자를 평가하며, 브라질 시장에서 여러 리더 및 신흥 스타를 지명합니다.
Le rapport ISG Provider Lens™ 2024 met en avant la demande croissante de centres de données au Brésil pour soutenir les tests et le développement de GenAI. Les points clés incluent :
1. Les entreprises s'éloignent des centres de données sur site vers des installations d'hébergement géré et de colocation.
2. GenAI nécessite une quantité significative d'énergie, incitant à des projets de fermes solaires et éoliennes.
3. Des approches hybrides permettent la distribution des données à travers plusieurs emplacements avec des liens privés.
4. L'expansion du marché inclut de nouveaux fournisseurs, des espaces disponibles accrus et des investissements internationaux.
5. Les sites de colocation offrent une connectivité avec les principaux fournisseurs de cloud et l'échange internet brésilien.
6. Le réseau défini par logiciel (SDN) permet des centres de données virtuels à plusieurs emplacements.
Le rapport évalue 43 fournisseurs dans quatre quadrants, nommant plusieurs leaders et étoiles montantes sur le marché brésilien.
Der ISG Provider Lens™ Bericht 2024 hebt die wachsende Nachfrage nach Rechenzentren in Brasilien hervor, um Tests und Entwicklungen im Bereich GenAI zu unterstützen. Wichtige Punkte sind:
1. Unternehmen wenden sich von lokalen Rechenzentren zu Managed Hosting und Colocation-Einrichtungen.
2. GenAI erfordert erhebliche Energie, was zu Plänen für Solar- und Windkraftwerke führt.
3. Hybride Ansätze ermöglichen die Datenverteilung über mehrere Standorte mit privaten Verbindungen.
4. Die Markterweiterung umfasst neue Anbieter, vergrößerte Flächen und internationale Investitionen.
5. Colocation-Standorte bieten Konnektivität zu großen Cloud-Anbietern und zur brasilianischen Internetbörse.
6. Software-definiertes Networking (SDN) ermöglicht virtuelle Rechenzentren an mehreren Standorten.
Der Bericht bewertet 43 Anbieter in vier Kategorien und benennt mehrere Führungskräfte und aufstrebende Stars im brasilianischen Markt.
- Growing demand for data centers to host GenAI servers
- Robust market expansion in providers and new data centers
- Increase in available floor space and international investment
- Integration of software-defined networking (SDN) tools by colocation providers
- Direct connectivity to major cloud providers (AWS, Azure, Google Cloud, OCI) at most colocation sites
- clean energy from hydroelectric sources for GenAI requirements
- Need for significant additional data center capacity in Brazil
Insights
The surge in demand for GenAI testing in Brazil is driving significant changes in the data center landscape. This trend presents both opportunities and challenges for the industry and investors.
Key insights:
- The shift from on-premises to external data centers is accelerating, with managed hosting and colocation facilities seeing rapid growth.
- GenAI's massive energy requirements are prompting colocation providers and hyperscalers to invest in renewable energy sources, particularly solar and wind farms.
- A hybrid approach, combining cloud technologies in managed hosting and colocation facilities with direct links to public cloud providers, is gaining traction.
- The market is experiencing robust expansion, with an increase in providers, new data centers, available floor space and international investment.
- Software-defined networking (SDN) integration is becoming a standard offering among colocation providers, enabling virtual data centers across multiple locations.
For investors, this evolving landscape presents several opportunities. The increasing demand for data center services, particularly those catering to GenAI needs, could drive growth for companies in this sector. However, it's important to consider the substantial capital expenditure required for expanding and upgrading facilities, as well as the potential regulatory challenges around energy consumption and data privacy.
The market's competitive dynamics are also shifting, with several companies emerging as leaders across multiple service categories. This consolidation could lead to increased market power for top performers but may also result in pricing pressures as competition intensifies.
Overall, while the growth trajectory appears strong, investors should carefully evaluate companies' ability to meet the evolving technological demands, manage energy costs and navigate the competitive landscape.
The Brazilian data center market's evolution in response to GenAI demands highlights several critical technological trends that investors should monitor closely.
Key technological considerations:
- GenAI infrastructure requirements: The massive computational power needed for GenAI is driving data center expansions and upgrades. This trend favors providers with scalable, high-performance computing capabilities.
- Energy efficiency innovations: With GenAI's substantial energy consumption, data centers implementing cutting-edge cooling technologies and energy management systems may gain a competitive edge.
- Hybrid cloud architectures: The growing preference for hybrid approaches underscores the importance of seamless integration between on-premises, colocation and public cloud environments. Providers offering robust interconnection services and multi-cloud management tools are well-positioned.
- Edge computing advancements: As GenAI applications demand lower latency, the push towards edge computing is accelerating. This shift could benefit companies with distributed data center networks and edge-specific solutions.
- Software-defined networking (SDN): The widespread adoption of SDN in colocation services indicates a move towards more flexible, programmable network infrastructures. This trend could drive demand for SDN-compatible hardware and management software.
From an investment perspective, companies at the forefront of these technological trends may offer significant growth potential. However, it's important to assess the long-term viability of their technological strategies, particularly in areas like energy efficiency and edge computing, which are still evolving rapidly.
The integration of GenAI capabilities into data center offerings could also become a key differentiator. Investors should look for providers that not only offer the infrastructure to support GenAI but also provide tools and services to help enterprises develop and deploy GenAI applications effectively.
Lastly, the cybersecurity implications of hosting GenAI workloads should not be overlooked. Data centers with robust security measures and compliance certifications may command a premium in this increasingly sensitive market.
A steady move away from on-premises data centers has led to rapid growth in managed hosting and colocation facilities, ISG Provider Lens™ report says
SÃO PAULO--(BUSINESS WIRE)--
Enterprises in
The 2024 ISG Provider Lens™ Private/Hybrid Cloud — Data Center Services report for
“GenAI requires a massive amount of energy,” said Anay Nawathe, ISG cloud delivery lead in the
Although Brazilian enterprises have been steadily reducing their on-premises data centers, not all their data is ending up in the public cloud, the ISG report says. Companies can opt for cloud technologies in managed hosting and colocation facilities that offer direct link connections to public cloud providers, the report says. According to ISG, adopting a hybrid approach enables enterprises to distribute applications across several locations and exchange data over private links without exposing any data on the public internet.
In response to this data migration, there has been robust market expansion in the number of providers and new data centers, a rise in available floor space and an increase in international investment in data center infrastructure, the ISG report says. The need for additional data centers in
All colocation sites are connected to the Brazilian internet traffic exchange network and most sites have direct connectivity to AWS, Azure, Google Cloud and Oracle Cloud Infrastructure (OCI), allowing managed hosting providers and content creators to leverage these highly available and hyperconnected data centers to offer their services, the ISG report says. According to the report, all colocation providers have integrated software-defined networking (SDN) tools into their services.
“Enterprises in
The report also examines how low-latency demands required by GenAI are driving Brazilian computing to the edge.
For more insights into the private/hybrid cloud and data center services challenges that enterprises in
The 2024 ISG Provider Lens™ Private/Hybrid Cloud — Data Center Services report for
The report names Edge UOL, Equinix, SBA Edge and T-Systems as Leaders in three quadrants each, while Kyndryl and TIVIT are named as Leaders in two quadrants each. Accenture, Ascenty, Capgemini, Dedalus, EVEO, inov.TI, ODATA, Scala Data Centers, Skymail, Under and Wipro are named as Leaders in one quadrant each.
In addition, HostDime is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants, while Elea Data Centers, Takoda and V8.Tech are named as Rising Stars in one quadrant each.
In the area of customer experience, Green is named the global ISG CX Star Performer for 2024 among Private/Hybrid Cloud – Data Center Services partners. Green earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.
Customized versions of the report are available from DataEnv, Elea Data Centers, EVEO, inov.TI, SBA Edge, Takoda and Under.
The 2024 ISG Provider Lens™ Private/Hybrid Cloud — Data Center Services report for
About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of insights to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across
About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI and automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in
View source version on businesswire.com: https://www.businesswire.com/news/home/20240724197495/en/
Press Contacts:
Will Thoretz, ISG
+1 203 517 3119
will.thoretz@isg-one.com
Thábata Mondoni, Mondoni Press for ISG
Mobile: +55 11 98671 5652
thabata@mondonipress.com.br
Source: Information Services Group, Inc.
FAQ
How are Brazilian enterprises adapting to GenAI requirements in data centers?
What factors are driving data center growth in Brazil according to the ISG report?
How does the hybrid approach benefit enterprises in Brazil's data center landscape?
What connectivity options do colocation sites in Brazil offer according to the ISG report?
Who are some of the Leaders in the Brazilian data center services market according to the ISG Provider Lens report (III)?
