Huawei Cloud lands in Latin America and becomes more competitive in data centers

Latin America is an increasingly large, interesting and connected market and, therefore, began to awaken the interest of large companies that are dedicated to the world of the cloud. Google, for example, already has a data center installed in Chile and, recently, rumors were heard that the company could invest in expanding its presence in that country.

The forecasts are encouraging for this market. In the area of Infrastructure-as-a-Service (IaaS) alone, Frost & Sullivan noted that the sector, which had generated about $1.8 billion in 2017, had a compound annual growth forecast (CAGR) of 31.9 percent to $7.4 billion by 2022.
The forecasts are encouraging for this market. In the area of Infrastructure-as-a-Service (IaaS) alone, Frost & Sullivan noted that the sector, which had generated about $1.8 billion in 2017, had a compound annual growth forecast (CAGR) of 31.9 percent to $7.4 billion by 2022.

Brazil is the country with the highest development in data centers and cloud, with a market share in IaaS of approximately 50 percent, following the data from the consulting firm. However, the installed capacity in that country is mainly to meet local demand. In the rest of the region, demand is being supplied by local data centers -many in the hands of telecommunication operators- and by clouds located in the United States or other countries of the world.

Last year Amazon Web Services (AWS) was also evaluating landing in the region with a data center, but its plans appear to have been frozen. After evaluating opportunities in Argentina and Chile, the only investment known from the U.S. giant is the opening of a contact center in Colombia.

But the cloud business continues to grow and there is already a Latin American country that is trying to become the cloud hub for the region. It is, precisely, Chile that has a Google data center and has just captured an investment of $100 million by Huawei to be the gateway to the public cloud of the Chinese company. 

Huawei has an agreement with Telefonica for its cloud business but the growing development of its business in the Latin American market - and perhaps also the doors that were closed to it in other parts of the world - meant that its gaze is set on growing in the region with its own investments.

The announcement was made during the Huawei Cloud Chile Summit

Huawei will build a data center in that country and bring to Latin America its public cloud, to offer a range of computer storage solutions, networks, databases and, of course, Big Data and Artificial Intelligence (AI).

According to the authorities of the Chinese company, Huawei Cloud is part of a trinomial that has as protagonists the future 5G network, the cloud and artificial intelligence, three technologies that are combined in the digital transformation of organizations, cities, and public administration.

The new data center to be opened in Chile will serve other countries in the region, just as Google's, located in Santiago, is currently doing.

With this news, Chile seems to be beginning to transform itself into an attractive center for data center investments with expectations of serving all of Latin America.

Huawei Cloud's landing shows that the trend is beginning to change and that big players are beginning to look to Latin America as fertile ground to build and operate their data centers. The question that remains now is whether, as new players arrive in the region, operators will follow Telefonica's lead or persist in maintaining the management of their data centers when there are other companies that do it better and on a larger scale. 

After all, everything indicates that the world is multi-cloud and the role of operators is not to maintain data centers but to offer services that allow access to and management of those multiple clouds.

Recommended stories