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Latin America Emerges as Hotspot for Data Center Development, the Latin America Data Center Construction Market to Hit $2.32 Billion by 2029 - Arizton
[April 03, 2024]

Latin America Emerges as Hotspot for Data Center Development, the Latin America Data Center Construction Market to Hit $2.32 Billion by 2029 - Arizton

CHICAGO, April 3, 2024 /PRNewswire/ -- According to Arizton's latest research report, the global Latin America data center construction market is growing at a CAGR of 9.25% during 2023-2029. 

Latin America Data Center Construction Market Research Report by Arizton

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Browse In-depth TOC on the Latin America Data Center Construction Market ???? 

354 – Pages???????????????
28?? - Tables???????????????
103 - Figures????? 

The Latin America Data Center Construction Market Report Scope?? 

Report Attributes?? 


Market Size - Investment (2029)?? 

USD 2.32 Billion

Market Size - Investment (2023)?? 

USD 1.36 Billion

CAGR - Investment (2023-2029)?? 

9.25 %

Market Size – Area (2029)

1,576 thousand Square Feet

Power Capacity (2029)

311 MW

Historic Year?? 


Base Year?? 


Forecast Year?? 


Market Segmentation?? 

Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Cooling Systems, Cooling Techniques, General Construction, Tier Standard, and Geography

Geographic Analysis?? 

Brazil, Chile, Colombia, Mexico, Argentina, and Rest of Latin America

Market Dynamics??? 

  • Increase in Demand for Cloud-Based Data Centers
  • Big Data & IoT Boosting Data Center Investments
  • Implementation of Tax Incentives Appeals to Data Center Investments
  • Growth in the Digital Economy



Brazil is a leading data center investment hub in Latin America, with São Paulo serving as a central location for developing various facilities, including hyperscale and cloud regions. This is followed by Rio de Janeiro and Fortaleza. Brazil is actively investing in digital transformations such as the 5G network rollout, which is slated to play a critical role in encouraging digital innovations, IoT, smart cities, and the fourth industrial revolution, leading to foreign investments in the country. Brazil stands out with 15 existing undersea cables that connect the country to other Latin American countries, as well as Portugal, Cameroon, Angola, and the US. The country is slated to witness the deployment of the Firmina submarine cable by Google; this submarine cable is poised to connect Brazil to Argentina, Uruguay, and the US.

In August 2023, ODATA launched RJ01, its first data center campus in Rio de Janeiro, Brazil; the facility is spread across a raised floor area of around 18,000 square meters and accounts for a power capacity of 24 MW. The company invested around $50 million in this project and is estimated to lease it out to major hyperscale customers.

In May 2023, Scala Data Centers opened the SGRUTB05 data center in the Tamboré campus in Barueri City, São Paulo, Brazil. The 6 MW facility is spread across 72,000 square feet and comprises 400 racks; it is leased to the major hyperscale clients. In addition, the company was projected to inaugurate the SGRUTB08 data center in Q1 2024.

Nowadays, data center operators spend their revenue on infrastructure, concentrating on improving redundant power infrastructure rather than on cooling systems throughout the Tier I and Tier II centers. Interestingly, mission-critical applications cannot be operated in these data centers since they account for a power capacity of less than 1 MW. According to the Uptime Institute's design and construction standards, Argentina, Peru, Costa Rica, Mexico, Panama, Nicaragua, Jamaica, and the Dominican Republic are some of the locations in Latin America that account for the presence of those data center facilities that received the Tier II standard certification.

Data Center Investors Analysis

  • Digitalization is propelling data center investments across Latin America owing to the broad use of cloud-based services, rising internet penetration rates, the growth in social media usage, and the adoption of advanced technologies such as IoT and big data.
  • In 2023, Latin America witnessed significant colocation investments from Scala Data Centers, KIO Networks, ODATA (Aligned Data Centers), Equinix, Ascenty, and Cirion Technologies. For instance, Scala Data Centers decided to invest in more than 30 data centers spread across the under-construction, planned, and announced stages.
  • AWS, Microsoft, Oracle, IBM, Google, and Huawei Technologies are the global cloud operators actively involved in expanding their presence or developing new cloud data centers. For instance,
    • In February 2024, AWS plans to launch the cloud region in early 2025. In addition, the company plans to invest around $5 billion in three data centers in the next 15 years in Queretaro, Mexico.

Why Should You Buy this Report?

  • Market estimations by investment, area, and power capacity at the regional level and across key geographies (5+ countries covered).
  • Assessment of investments by colocation, hyperscale, and enterprise operators.
  • A detailed study of the existing market landscape, an in-depth industry analysis, and insightful predictions about the growth trajectory of the market and its sub-segments.
  • A comprehensive analysis of the industry's key market enablers, latest trends, restraints, and growth prospects.
  • Data center market investments are classified into multiple segments and sub-segments (electrical, mechanical, and general construction services), with sizing and market forecast.
  • Provide a business overview and product offerings of prominent construction contractors, support infrastructure providers, and investors operating in the industry.
  • A transparent research methodology and the analysis of the demand and supply aspects of the industry.

The Latin America Data Center Construction Market?Report Encompasses Crucial Data, including:???

Market size and growth forecast for 10 years from 2020-2029???????????? 
CAGR (Compound Annual Growth Rate) during the forecast period: This metric provides insights into the annual growth rate of the Latin America data center construction market over the specified time frame.?????????????? 
Detailed information on growth drivers: The report offers in-depth information on the factors that will propel the Latin America data center construction market?growth from 2023 to 2029. This includes an analysis of various market influences.?????????????? 
Precise estimation of market size: Accurate assessments of the Latin America data center construction market?size and its contribution, focusing on key market segments.?????????????? 
Predictions about upcoming trends and changes in consumer behavior: The report offers insights into anticipated trends and shifts in consumer behavior that are likely to impact the Latin America data center construction market, helping businesses prepare for future market dynamics.?????????????? 
Geographical market growth: The report covers the development of the Latin America data center construction market.
Competitive landscape analysis: A thorough examination of the market's competitive landscape is presented, including detailed information about companies operating in the Latin America data center construction market. This includes an overview of key players, their market share, strategies, and key developments.?????????????? 
Analysis of growth challenges: The report includes a comprehensive analysis of factors that may pose challenges to the growth of companies in the Latin America data center construction market, providing a well-rounded view of the market dynamics.??????? 

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The Report Includes the Investment in the Following Areas: 


  • Electrical Infrastructure
  • Mechanical Infrastructure
  • 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 & CRAH Units
  • Chillers Units
  • Cooling Towers, Condensers, and Dry Coolers
  • Economizers & Evaporative Coolers
  • Other Cooling Units

Cooling Technique

  • 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


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


Key Data Center Support Infrastructure Providers

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

Prominent Construction Contractors

  • Aceco TI
  • Afonso França Engenharia
  • Constructora Sudamericana
  • Cundall
  • Fluor Corporation
  • Gensler
  • HDOS
  • Hyphen
  • Holder Construction
  • Jacobs Engineering
  • KMD Architects
  • Modular Data Centers
  • PQC
  • Quark
  • Syska Hennessey Group
  • Soben
  • Turner Construction
  • Turner & Townsend
  • The Weitz Company
  • ZFB Group
  • Zeittec

Prominent Data Center Investors

  • Amazon Web Services (AWS)
  • Ascenty
  • Angola Cables
  • Ava Telecom
  • Blue NAP Americas
  • Cirion Technologies
  • ClaroVTR
  • Digicel
  • Entel
  • Equinix
  • EdgeUno
  • EdgeConneX
  • Elea Digital
  • Gtd Peru
  • HostDime
  • IPXON Networks
  • InterNexa
  • KIO Networks
  • Microsoft
  • Millicom (Tigo Panama)
  • Nabiax
  • Oxygen
  • Onex
  • ODATA (Aligned Data Centers)
  • Quântico
  • Scala Data Centers
  • Telecom Italia Sparkle
  • V.tal

New Entrants

  • CloudHQ
  • DHAmericas
  • EVEO
  • Layer 9 Data Centers
  • Surfix Data Center

Key Questions 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 is the estimated market size in terms of area in the Latin America data center construction market by 2029?What are the key trends 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 2029?

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