Latin America Data Center Construction Market Report 2022-2027: Brazil is the Market Leader, Contributing Over 50% of Investments
DUBLIN, July 25, 2022 /PRNewswire/ -- The "Latin America Data Center Construction Market - Industry Outlook and Forecast 2022-2027" report has been added to ResearchAndMarkets.com's offering.
Some of the major construction parameters and standards on which data centers in Latin America are built include Uptime Institute's Tier standards, LEED Certification, TIA 942, and ANSI/BICSI 002-2019 certifications
There is an increase in the construction of data centers built to cater to increasing demand by hyperscale and cloud service providers such as Microsoft, Amazon Web Services, Google, IBM, Huawei, and Tencent, among others, which will also drive the market, especially for wholesale colocation
Brazil is the market leader, contributing over 50% of the investment to Latin America, followed by other countries such as Mexico, Columbia, Chile, and Uruguay. Modular data center deployment is popular in other Latin American countries such as the Caribbean and Paraguay, among others
Scala Data Centers, a hyperscale developer in Brazil, has created the region's Center of Excellence in Engineering (CoE). The CoE will manage the end-to-end design and construction process of data centers built by Scala Data Centers in Latin America, with a focus on energy and operational efficiencies
KEY TRENDS DRIVING THE MARKET
Deployments Enabling Edge Data Center Deployments
- Latin American countries are working toward digital transformation to attract foreign investments. 5G network deployment fuels digital transformation, IoT, smart cities, and the fourth industrial revolution
- In February 2021, Chile completed the first 5G spectrum tender in Latin America. In November 2021, Brazil raised around $8 billion investment to deploy and operate 5G data networks
- The increasing deployment and coverage of 5G will lead to the development of edge data center facilities, thereby creating investment opportunities in the market
Adoption of Cloud, IoT, and Big Data Driving Wholesale Colocation
- In Latin America, one of the major drivers for the increasing construction of hyperscale facilities is the increase in cloud computing services, driven by the digitalization of enterprises, and the shift to private, public, or a hybrid cloud architecture
- For providing high quality and low latency cloud-based services across Latin America, the major cloud service providers are expanding their reach across the region via cloud regions/cloud-on-ramps/Points of Presence (PoPs)
Deployment of Submarine Cables Fueling Data Center Construction
- In Latin America, countries having submarine cable connectivity include Brazil, Colombia, Chile, Peru, Uruguay, and Mexico, among others, connecting the region internally as well as to other regions such as Africa, Europe, North America, and APAC
- Many submarine cables, such as the Firmina cable, and the Caribbean Express (CX cable), among others, are expected to be operational in the next two to three years and will connect the region further with the rest of the world
- Investments in submarine cables in the region have grown considerably over the years with the help of enterprises and governments, which continuously strengthen fiber infrastructure for better connectivity with other countries
- Hyperscale opertors and telecommunication providers are also investing in submarine cables to improve network connectivity in various Latin American countries
Tax Incentives Boosting Data Center Construction
- Various countries are providing tax incentives to investors based locally or even global investors, which will aid in increased construction of data centers
- The majority of these tax incentives provided by provinces and countries are based on jobs, land taxes, capital, and the lower power price needs of data center investments across regions
- A free trade zone is provided in Columbia as a suitable location for mission-critical facilities enabling tax incentives for the data center developers. Similarly, the southern region of Patagonia, an upcoming digital hub in Chile, is planning to provide tax incentives for data center growth
COMPETITIVE ANALYSIS
- Some of the major vendors involved in theLatin America data center construction market are AECOM, Constructora Sudamericana, Fluor Corporation, and Jacobs Engineering, among others
- These vendors are collaborating with data center operators to provide reliable construction solutions. For instance, ZFB Group is looking to invest around $90 million in the Zetta DC data center based on Tier IV standards
- Core & shell development retains the highest share in construction. In Latin America, the cost of core & shell is lower in countries such as Mexico and Colombia while highest in Chile & Argentina
- In recent years, there has been an immense focus on reducing the energy consumption and carbon emission levels of data centers to improve their green credentials
The following factors are likely to contribute to the Latin America data center construction market growth during the forecast period:
- Adoption of Cloud, IoT & Big Data
- Construction of Modular Data Centers
- Increased Deployment of Submarine Cables
- Thriving Digital Economy in Latin America
- Tax Incentives Enhancing Data Center Investments
Key Support Infrastructure
- ABB
- Alfa Laval
- Assa Abloy
- Axis Communications
- Bosch Security Systems
- Caterpillar
- Cummins
- Delta Electronics
- Daikin Applied
- EATON
- Generac Power System
- Honeywell International
- Johnson Controls
- Legrand
- Mitsubishi Electric
- Munters
- Piller Power Systems
- Panduit
- Rittal
- Rolls-Royce
- Schneider Electric
- STULZ
- Siemens
- Vertiv
Prominent Construction Contractors
- AECOM
- Aceco TI
- Constructora Sudamericana
- Fluor Corporation
- Holder Construction
- Jacobs Engineering
- Quark
- ZFB Group
Key Data Center Investors
- Ascenty
- Ava Telecom
- Amazon Web Services (AWS)
- CloudHQ
- EdgeConneX
- Equinix
- Google
- Globenet
- HostDime
- InterNexa
- Lumen Technologies
- Microsoft
- Nabiax
- ODATA
- Scala Data Centers
- Telmex
- Tigo (MALLICOM)
- Quantico
Key Topics Covered:
1 Research Methodology
2 Research Objectives
3 Research Process
4 Scope & Coverage 4.1 Market Definition 4.2 Base Year 4.3 Scope of the Study 4.4 Market Segments
5 Report Assumptions & Caveats 5.1 Key Caveats 5.2 Currency Conversion 5.3 Market Derivation
6 Market at a Glance
7 Premium Insights 7.1 Key Market Highlights 7.2 Key Trends Driving the Market 7.3 Competitive Analysis
8 Introduction 8.1 Key Considerations in Data Center Construction 8.2 Data Center Design Certifications 8.3 Construction Costs in Latin America 8.4 Data Center Site Selection Criteria
9 Market Opportunities & Trends 9.1 5G Deployments Fueling Edge Data Center Deployments 9.2 Growing Rack Power Density 9.3 Deployment of Microgrids in Data Centers 9.4 Implementation of Automation & Ai in Data Centers 9.5 Sustainable Data Center Construction Materials 9.6 Rising Adoption of Dcim
10 Market Growth Enablers 10.1 Adoption of Cloud, IoT & Big Data 10.2 Impact of Covid-19 10.3 Construction of Modular Data Centers 10.4 Increased Deployment of Submarine Cables 10.5 Thriving Digital Economy in Latin America 10.6 Tax Incentives Enhancing Data Center Investments
11 Market Restraints 11.1 Security Challenges in Data Centers 11.2 Location Constraints on Data Center Construction 11.3 Lack of Skilled Workforce 11.4 Rising Carbon Emissions from Data Centers 11.5 Supply Chain Challenges
12 Market Landscape 12.1 Market Overview 12.2 Investment: Market Size & Forecast 12.3 Area: Market Size & Forecast 12.4 Power Capacity: Market Size & Forecast 12.5 Five Forces Analysis
13 Infrastructure 13.1 Market Snapshot & Growth Engine 13.2 Electrical Infrastructure 13.3 Mechanical Infrastructure 13.4 General Construction
14 Electrical Infrastructure 14.1 Market Snapshot & Growth Engine 14.2 Ups Systems 14.3 Generators 14.4 Transfer Switches & Switchgear 14.5 Power Distribution Units 14.6 Other Electrical Infrastructure
15 Mechanical Infrastructure 15.1 Market Snapshot & Growth Engine 15.2 Cooling Systems 15.3 Racks 15.4 Other Mechanical Infrastructure
16 Cooling Systems 16.1 Market Snapshot & Growth Engine 16.2 Crac & Crah Units 16.3 Chiller Units 16.4 Cooling Towers, Condensers & Dry Coolers 16.5 Economizers & Evaporative Coolers 16.6 Other Cooling Units
17 Cooling Technique 17.1 Market Snapshot & Growth Engine 17.2 Air-Based Cooling Technique 17.3 Liquid-Based Cooling Technique
18 General Construction 18.1 Market Snapshot & Growth Engine 18.2 Core & Shell Development 18.3 Installation & Commissioning Services 18.4 Engineering & Building Design 18.5 Fire Detection & Suppression 18.6 Physical Security 18.7 Dcim/Bms Solutions
19 Tier Standards 19.1 Market Snapshot & Growth Engine 19.2 Overview of Tier Standards 19.3 Tier I & Ii 19.4 Tier Iii 19.5 Tier Iv
20. Geography 20.1 Investment: Market Snapshot & Growth Engine 20.2 Area: Market Snapshot & Growth Engine 20.3 Power Capacity: Market Snapshot & Growth Engine
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