Brightlio Blog

Introduction

Welcome to the dynamic world of colocation in Peru! As businesses increasingly rely on digital infrastructure, the demand for reliable and efficient data management solutions is soaring. “The Peru data center market is expected to reach a value of $200.5 million by 2028 from $105.5 million in 2022, according to “Peru Data Center Market Investment Analysis & Growth Opportunities 2023-2028“. This represents a growth rate of over 11%. Let’s dive into this burgeoning market and uncover the drivers for growth.

Peru Offers a Thriving Technology Scene

Peru’s burgeoning tech scene presents several strategic advantages for data center colocation. Lima, as the epicenter of this tech boom, boasts a sophisticated telecommunications infrastructure and a reliable power grid. These are essential for the uninterrupted operation of data centers. The city’s rich pool of tech talent, nurtured by top-tier universities and a vibrant startup ecosystem, ensures that colocation facilities can access skilled professionals for their technical and operational needs.

Lima’s educational institutions, such as the Pontifical Catholic University of Peru and the National University of Engineering, are key contributors to the tech talent pool. They produce skilled graduates who fuel the workforce of these tech ventures. Numerous tech events, meetups, and conferences actively support the city’s vibrant tech community. These foster a culture of collaboration and knowledge sharing. This lively ecosystem has propelled Lima into a tech hub and positioned it as a beacon of technological advancement.

Peru is a Connectivity Hub

Lima’s strategic location on the Pacific coast offers direct access to international submarine cable systems, facilitating faster and more reliable data transmission to North America and the rest of South America. This is important enterprises seeking access to global markets and the cloud.

There are currently three submarine cable systems in Peru:

• South American Crossing connects Lurin Peru to other countries in Central and South America, including Argentia, Brazil, Chile, Colombia, Panama, US Virgin Islands, and Venezuela.
• South America-1 Cable Network (SAm-1) connects Lurin, Peru with Argentina, Brazil, Chile, Colombia, Dominican Republic, Guatemala, Puerto Rico, and the United States.
• The South Pacific Submarine Cable connects Lurin, Peru to Chile, Ecuador, and Guatemala.

AWS and Huawei also offer cloud on-ramps out of Lima data centers. The deployment of 5G services and the development of smart cities are set to escalate data traffic in Peru, spurring a surge in demand for more data centers.

Venture Capital and Investment

The investment landscape in Lima is also maturing, with more venture capital firms and angel investors showing interest in Peruvian startups. This influx of capital is not only a vote of confidence in the local market but also provides the necessary fuel for the growth and expansion of these young companies. Lima has already produced several success stories, with startups expanding beyond Peru’s borders, demonstrating the global potential of the innovations being developed here. These successes inspire and prove that Lima is a fertile ground for tech startups.

Key investors in 2022, such as Equinix, Gtd Peru, Claro, Nabiax, and Cirion Technologies, are pivotal to this growth. Notably, Equinix expanded its presence by acquiring Entel Peru’s data center, while Cirion Technologies has rebranded Lumen Technologies’ Latin American operations. Among these, the Nabiax Lince facility stands out with the highest power capacity in the country, boasting 1.2 MW.

Peru Offers Moderate Energy Costs

Comparing Energy Costs in Peru vs Neighboring Countries:

• Chile: Generally pricier than Peru due to higher electricity costs and a more developed data center market.
• Colombia: Similar to Peru regarding power costs, with some facilities offering competitive rates.
• Ecuador: Slightly cheaper than Peru due to lower electricity costs, but data center infrastructure is less developed.
• Bolivia: Significantly cheaper than Peru due to lower electricity costs and limited data center options.

Challenges and Considerations

However, it’s not all smooth sailing. Peru’s unique challenges, like its diverse geography, impact data center operations. Additionally, navigating the country’s regulatory landscape requires careful consideration. Despite these hurdles, the sector continues to thrive, adapting and innovating.

Choosing the Right Colocation Service Provider

Selecting a provider is crucial. Businesses must consider various factors like location, scalability, and security. Negotiating contracts and understanding service-level agreements are key to ensuring a fruitful partnership.

Brightlio works with numerous data center operators and network providers in Peru in particular:

• Cirion operates a 4000 sq ft data center with 4MW of power near Lima city center.
• Equinix: The global leader in colocation and connectivity services operates LM1, which has 8094 sq ft of data center real estate and 0.7 MW of power near Cirion’s data center.
• GTD Peru operates a Tier III data center in Surco, which is about 6km from Cirion and Equinix.
• EdgeUno has cabinets and network connectivity in all three facilities, with robust connectivity within Latin America and back to the United States.
• Zenlayer also operates out of all three facilities with major connectivity to Asian countries like Indonesia, Singapore, China, and more.

Brightlio Delivers Colocation in Peru

If you are looking for colocation servers in Peru, or other global markets, Brightlio can help. Our network of partners allows us to deliver the right data center solution for your needs and budget. Additionally, we offer cloud, connectivity, unified communications, value-added resale, and advisory services, making us an excellent fit for all of your technology needs.

Get started today with Brightlio!