Data Center - Dominican Republic

  • Dominican Republic
  • Revenue in the Data Center market is projected to reach US$387.60m in 2024.
  • Network Infrastructure dominates the market with a projected market volume of US$295.50m in 2024.
  • Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.93%, resulting in a market volume of US$493.00m by 2029.
  • In global comparison, most revenue will be generated in the United States (US$123.20bn in 2024).

Key regions: United States, Germany, India, Japan, China

 
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Analyst Opinion

The data center market in the Dominican Republic is experiencing slow growth, influenced by factors such as limited adoption of digital technologies, low health awareness among consumers, and challenges in infrastructure development. This is evident in the subdued growth rate of the sub-markets for servers, storage, and network infrastructure, which are all impacted by the lack of investment and resources in the country's data center industry.

Customer preferences:
As the demand for digital services continues to rise in the Dominican Republic, consumers are increasingly opting for cloud-based solutions for their personal and business needs. This trend is driven by the country's growing tech-savvy population and the need for remote work and collaboration due to the COVID-19 pandemic. Additionally, the government's initiatives to promote digital transformation and e-governance are further fueling the adoption of data center services.

Trends in the market:
In Dominican Republic, the Data Center Market is experiencing a surge in demand for cloud services, driven by the increasing adoption of digital transformation strategies by businesses. This trend is expected to continue on an upward trajectory, with more organizations looking to outsource their data storage and management needs to third-party providers. This shift towards cloud-based solutions has significant implications for industry stakeholders, as it presents opportunities for growth and innovation, while also posing challenges in terms of data security and compliance. Additionally, the emergence of edge computing is gaining momentum in the country, with the potential to further enhance the efficiency and performance of data centers.

Local special circumstances:
In Dominican Republic, the Data Center Market is heavily influenced by the country's tropical climate and vulnerability to natural disasters. This has led to a focus on building data centers that can withstand extreme weather conditions and ensure uninterrupted operations. Additionally, the country's growing economy and increasing demand for digital services have resulted in a regulatory environment that promotes investment in data center infrastructure. This unique combination of factors has made Dominican Republic a prime location for data center development in the Latin American region.

Underlying macroeconomic factors:
The Dominican Republic's Data Center Market is influenced by macroeconomic factors such as technological advancements, government support, and investment in digital infrastructure. Countries with favorable regulatory environments and strong investment in data centers are experiencing faster market growth compared to regions with regulatory challenges and limited funding. Additionally, the increasing demand for cloud services and the growth of internet usage in the country are driving the need for data centers to support digital transformation and economic growth.

Methodology

Data coverage:

The data encompasses B2B enterprises. Figures are based on hardware-related expenses of businesses for setting up and maintaining an IT infrastructure.

Modeling approach / Market size:

Market sizes are determined through a top-down approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports and national statistical offices. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and level of digitization. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques, such as exponential trend smoothing and the S-curve function, is based on the behavior of the relevant market.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

Overview

  • Revenue
  • Key Players
  • Analyst Opinion
  • Global Comparison
  • Methodology
  • Key Market Indicators
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