Latest research report released by Arizton says Argentina’s data center market will grow at a CAGR of 9.36% from 2022 to 2028.
The Argentina data center market size will witness investments of US$296 million by 2028, growing at a CAGR of 9.36% during the forecast period.
This upbeat assessment is reported in new research by Arizton recognizing Argentina as leading in digital education with the Learn Connected program, offering classes from kindergarten to high school in digital literacy, programming and robotics.
The report says the country’s commitment to embracing digital innovations and entrepreneurial spirit promises a ‘bright future’ in Latin American digital transformation.
According to the report, the Argentina data center market is set to become a prominent player in the Latin American data center market, fuelled by advantageous factors such as affordable electricity rates, governmental backing for data center expansion, robust data protection legislation and operator tax incentives.
These elements, the report says, will propel the market’s growth in the coming years.
Furthermore, in the region, the report recognizes a ‘noticeable surge’ in the adoption of cloud services by both organizations and the government.
Telecom Argentina, a comprehensive provider of connectivity services, entertainment, and technological solutions, has strategically incorporated Google Cloud into its hybrid multi-cloud approach, aligning with its overarching cloud-first strategy.
In line with its dedication to the Paris Agreement on climate change, the country has outlined its nationally determined contribution (NDC) to limit its net emissions to 349 million tonnes of CO2 equivalent by 2030, the report says.
Also, the Argentina data center market is said by the report to ‘distinguish itself’ as a highly connected country in Latin America, featuring seven operational submarine cables and an additional one in construction.
The report notes Google’s recent contribution to this extensive submarine network with the introduction of Firmina, a new cable scheduled for launch in 2024.
Acknowledging Buenos Aires and Cordoba as the hubs for data center development, the report expects other cities to grow during the forecast period.
Argentina, the report says, provides enticing tax incentives and a business-friendly atmosphere through the ‘Knowledge Economy Law’ aiming to attract data center operators for facility development.
The report specifically references AWS as benefiting from an export tax exemption and, as part of the free-trade zone, is exempt from national and provincial taxes on energy consumption.
In Argentina, there is a noticeable surge in the adoption of cloud services by both organizations and the government.
Telecom Argentina, a comprehensive provider of connectivity services, entertainment and technological solutions, has strategically incorporated Google Cloud into its hybrid multi-cloud approach – aligning with its overarching cloud-first strategy.
The report says that over the next few years, maximum data center demand in Argentina will come from the cloud segment, followed by IT and telecom, government, e-commerce, BFSI, healthcare and education sectors.
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