Equinix is Meeting Demand for Digital Infrastructure in Latin America – Interconnections – The Equinix Blog
The digital acceleration happening in countries like Colombia, Brazil and Mexico shows up clearly in the Global Interconnection Index (GXI) 2023, an annual market study published by Equinix. The GXI benchmark forecasts interconnection bandwidth[2] in the Americas to increase at a compound annual growth rate (CAGR) of 39% through 2025, making the Americas the fast-growing region in the world. A closer look at the benchmark data shows that LATAM metros play a big role in driving that growth.
The GXI examines how interconnection bandwidth is growing across two different varieties of metro locations:
- Core metros, which are locations used primarily to provision capacity between networks, clouds, XaaS providers and Enterprise digital infrastructure.
- Edge metros, which are locations used primarily as the interface between the digital and physical worlds—where organizations connect with customers, edge devices and local marketplaces.
In the GXI data, a key pattern emerged across both core and edge metros in the Americas: LATAM metros are increasing interconnection bandwidth very quickly, reflecting the growing digital maturity of the region. For instance, the GXI found São Paulo to be the fastest-growing core metro in the world. At 46% CAGR, it’s growing significantly faster than more established U.S. metros like New York and Washington.
Forecasted interconnection bandwidth growth in Americas core metros
The data also provides insights into the industry ecosystems that are driving interconnection bandwidth growth within each metro. For instance, demand for interconnection bandwidth in São Paulo is largely driven by the Manufacturing and Healthcare & Life Sciences industry ecosystems. Mexico City’s status as a mature financial services hub helped make it the fastest growing among Americas edge metros. At 49% CAGR, it’s outpacing places like Los Angeles and Toronto.
It’s also noteworthy that as a whole, edge metros in the Americas are growing interconnection bandwidth faster than core metros are. This reflects the changing nature of digital business throughout the region. Organizations increasingly need to get closer to end users and set low-latency connections to enable the latest digital applications. Deploying infrastructure and interconnection services in digital edge locations helps them achieve that goal. This growing demand for digital infrastructure in more places throughout LATAM is one reason we’re so excited to be pursuing expansion opportunities like the one we just announced in Bogotá.
Learn how interconnection is enabling the future of digital business
The examples above are just a few of the many ways Equinix aims to provide interconnected digital infrastructure in more places for customers within LATAM and businesses looking to expand there.
To learn more about how interconnection and digital infrastructure are expanding, in LATAM and across the globe, read the Global Interconnection Index 2023 report.
[1] TeleGeography Global Internet Map
[2] Interconnection bandwidth is a measure, calculated in bits/sec, of the capacity provisioned to privately and directly exchange traffic between two parties, inside carrier-neutral colocation data centers.
