1.2 Million Sq. Ft to be Added in Latin America Data Center Construction Market in 2028 – Arizton

The Latin America data center construction market will reach USD 1.86 billion by 2028, growing at a CAGR of 9.31% during 2022-2028. 

5G launch booming EDGE data center demand, adoption of renewable energy in the region, implementation of automation & AI In data centers, and adoption of advanced IT infrastructure in data centers are key aspects driving the Latin America data center construction market growth. 

There is an increase in submarine cable investments in Latin America as governments and businesses constantly expand fiber infrastructure to improve communication with other countries. Several telecommunication providers and hyperscale data center operators invest in cables to improve network connectivity within the country. The adoption of cloud, Big data, and IoT technologies strengthened the need for strong fixed broadband connectivity in the last five years. The market also witnesses a growth in data storage and connectivity demand due to the increased inland connectivity options.  

Brazil, Chile, Colombia, Argentina, Peru, Uruguay, Venezuela, Mexico, Ecuador, and other Latin American countries have submarine cable connectivity, which connects Europe, Africa, and the US. 

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Key Insights 

• Within Latin America, major contributors to green data center development include countries such as Brazil, Chile, Argentina, and Paraguay, among others, wherein operators and governments are working toward the adoption of renewable energy and other such measures. 
• Latin American countries Chile, Uruguay, Brazil, Colombia, Argentina, Mexico, and Peru witnessed the deployment of 5G network services on a commercial and trial basis. 
• Hyperscale operators in the Latin America data center construction market, including Google, Microsoft, Amazon Web Services, and Huawei Technologies, are driving the market regarding sustainable investments and innovative technologies. 
• Operators such as HostDime, KIO Networks, and Scala Data Centers, among others, are focused on building data centers with a PUE of less than 1.5 in Latin America using renewable energy, free cooling, and efficient IT infrastructure. 
• Among colocation service providers, the major growth contributors to the Latin America data center construction market are Ascenty, Equinix, HostDime, ODATA, Quantico, Scala Data Centers, Telmex, and Tigo Business, which are spending millions of dollars on facilities development. 

Competitive Overview 

The Latin America data center construction market has the presence of both global and local infrastructure providers. Several infrastructure providers offer specific products or complete power infrastructure solutions for data centers. Vendors increase their presence in Latin American countries, likely to boost revenue growth, especially due to the construction of large data centers in countries such as Brazil, Chile, Colombia, and Mexico. Latin America is a growing market for data centers, where operators have several options for innovative power infrastructure solutions. 

A single large or mega data center project contract will likely add revenue for infrastructure providers under their respective operating segments. Modern innovations across infrastructure lead to the development of innovative products. The market is expected to witness increased use of diesel generators and DRUPS systems during the forecast period, making significant contributions to the market revenue by the end. In addition, some data centers use UPS systems with N+1 redundancy. The Latin American market witness’s high competition due to the increased construction of data centers. Data center operators constantly seek energy-efficient cooling systems with a low carbon footprint. Many data center operators adopt units from different vendors to provide efficient cooling solutions for their facilities. The region's market for chilled water systems, such as CRAH & CRAC units and air chillers, is high and increases YOY because most data center facilities adopt these cooling systems. 

Investment Insights  

• In 2022, Brazil led the Latin America data center construction market by over 45% of the market share in investments, followed by Mexico, Chile, and Colombia. 
• Some major data center service providers engaged in constructing data center facilities in 2022 include Ascenty, Equinix, Scala Data Centers, ODATA, and HostDime. 
• In 2022, regional and international colocation operators and telecommunication service providers invested in data centers. Adopting Big data, IoT, 5G deployment, and the cloud are key drivers for the Latin America data center construction market. 
• Cloud service providers, such as Google, AWS, Microsoft, Oracle, IBM, and Tencent, invest in the market. Major cloud service providers will increase their presence in the area during the forecast period. 
• Chile, Uruguay, Brazil, Colombia, Argentina, Mexico, and Peru witness commercial and test deployments of 5G networks. 
• In 2022, Stonepeak Infrastructure Partners purchased the Latin American operations of Lumen Technologies for over $2.5 billion and rebranded it to Cirion. 
• Several M&As occur among the Latin America data center construction market colocation vendors. For instance, in March 2022, Equinix announced that it acquired around four data centers of Entel in Chile and Peru. In December 2022, Aligned announced an agreement to acquire ODATA, which marks the entry of Aligned into the Latin American market. 

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The report includes the investment in the following areas:  

Infrastructure 

• Electrical 
• Mechanical 
• General Construction 

Electrical Infrastructure 

• UPS Systems 
• Generators 
• Transfer Switches & Switchgear 
• PDUs 
• Other Electrical Infrastructure 

Mechanical Infrastructure 

• Cooling Systems 
• Racks 
• Other Mechanical Infrastructure 

Cooling Systems 

• CRAC and CRAH Units 
• Chillers Units 
• Cooling Towers, Condensers, and Dry Coolers 
• Economizers & Evaporative Coolers 
• Other Cooling Units 

Cooling Techniques 

• Air-based Cooling 
• Liquid-Based Cooling 

General Construction 

• Core & Shell Development 
• Installation & Commissioning Services 
• Engineering & Building Design 
• Fire Detection & Suppression 
• Physical Security 
• DCIM/BMS Solutions 

Tier Standard 

• Tier I & Tier II 
• Tier III 
• Tier IV 

Geography 

• Brazil 
• Mexico 
• Chile 
• Colombia 
• Rest of Latin America 

Major Vendors 

Prominent Support Infrastructure 

• ABB 
• Alfa Laval 
• Assa Abloy 
• Axis Communications 
• Bosch Security Systems 
• Caterpillar 
• Cummins 
• Daikin Applied 
• Delta Electronics 
• EATON 
• Honeywell 
• Johnson Controls 
• Legrand 
• Munters 
• Mitsubishi Electric 
• Piller Power Systems 
• Panduit 
• Rittal 
• Rolls-Royce 
• Schneider Electric 
• Siemens 
• STULZ 
• Vertiv 

Prominent Construction Contractors 

• AECOM 
• Aceco TI 
• Constructora Sudamericana 
• Cundall 
• Fluor Corporation 
• Gensler 
• HDOS 
• Hyphen 
• Holder Construction 
• Jacobs Engineering 
• KMD Architects 
• PQC 
• Quark 
• Syska Hennessey Group 
• Turner Construction 
• Turner & Townsend 
• ZFB Group 
• Zeittec 

Prominent Data Center Investors 

• Amazon Web Services (AWS) 
• Business Overview 
• Service Offerings 
• Ascenty 
• Ava Telecom 
• Air Link Communications 
• Belize Network Information Centre 
• Blue NAP Americas 
• Brac Informatics Centre (BIC) 
• Claro 
• Digicel 
• Entel 
• Epic.io 
• Equinix 
• EdgeConneX 
• GlobeNet Telecom 
• Gtd Peru 
• HostDime 
• InterNexa 
• IPXON Networks 
• KIO Networks 
• Lumen Technologies (CIRION) 
• Millicom (Tigo Panama) 
• Nabiax 
• ODATA 
• Oxygen 
• OneX 
• Scala Data Centers 
• SONDA 
• Telecom Italia Sparkle 

New Entrants 

• CloudHQ 
• Business Overview 
• Service Offerings 
• DHAmericas 
• Microsoft 

Key Questioned Answered in the Report:    

• How big is the Latin America data center construction market? 
• What is the growth rate of the Latin America data center construction market? 
• What factors drive the Latin America data center construction market growth? 
• What is the estimated market size in terms of area in the Latin America data center construction market by 2028? 
• Who are the new entrants in the Latin America data center construction market? 
• How many MW of power capacity is expected to reach the Latin America data center construction market by 2028?  

Check the detailed table of contents of the report @ https://www.arizton.com/market-reports/latin-america-data-center-construction-market-size-and-analysis-2024?details=tableOfContents 

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