Brazil Data Center Construction Market Size
| Study Period | 2024 - 2030 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2030 |
| CAGR | 7.58 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Brazil Data Center Construction Market Analysis
The Brazil Data Center Construction Market is projected to register a CAGR of 7.58% during the forecast period.
Under Construction IT Load Capacity: The upcoming IT load capacity of the Brazil data center construction market is expected to reach 1205 MW in six years.
Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase by 4.6 million sq. ft in six years.
Planned Racks: The country's total number of racks to be installed is expected to reach 231,802 units in six years.
Planned Submarine Cables: Close to 15 submarine cable systems connect Brazil; many are under construction. One such submarine cable, estimated to be built by the end of the current year, is Firmina, which stretches over 14517 km with landing points in Las Toninas, Argentina, Praia Grande, Brazil, Myrtle Beach, SC, United States, Punta del Este, Uruguay.
Brazil Data Center Construction Market Trends
IT and Telecom to have significant market share
- The cloud segment reached an IT load capacity of 91.3 MW this year. It is expected to register a CAGR of 13.55%, surpassing 266.3 MW in six years. On the other hand, the BFSI segment is projected to register a CAGR of 13.63%, reaching a capacity of 139.9 MW in six years.
- Cloud and BFSI are expected to contribute the highest market share among end-user industries, while the manufacturing segment is expected to register the fastest growth over the forecast period. The Brazilian data center market is being driven by rising cloud use across most companies due to the development of technologies like artificial intelligence, big data, and blockchain among various end users.
- Big data and analytics solutions and services received a total investment of USD 2.9 billion in 2022, an increase of 10.8%. For artificial intelligence/machine learning (AI/ML), the expected spending in the same year was 28% Y-o-Y, reaching USD 504 million. In 2022, the Brazilian market for security services was valued at USD 1 billion, with an average growth rate of about 10% Y-o-Y since the pandemic.
- Sales of security products will surpass USD 860 million in the future, with cloud computing garnering significant interest. As the popularity of cloud computing services, security services, and applications increases, a more sizable colocation of cloud-based data centers is expected to be constructed in Brazil.
- In June 2022, Google Cloud announced an investment of BRL 1.6 billion (USD 312.65 million) in technological infrastructure. Google Cloud aims to assist its clients in expanding their digital capabilities, diversifying their service portfolios, and generating new business. This trend suggests the growing cloud demand in the country.
Sao Paulo is a major hotspot for data center construction market for the country
- The total IT load capacity in Sao Paulo reached 328.74 MW in the current year and is expected to register a CAGR of 14.33%, surpassing 1,007.54 MW in five years.
- On the other hand, Rio de Janeiro is estimated to register a CAGR of 11.36%, reaching a capacity of 89.36 MW. The Rest of Brazil is projected to register a CAGR of 2.02% to get 108.5 MW in five years.
- With a population of about 21.3 million, So Paulo is the largest and most populated city in Brazil, the Americas, and the southern and western hemispheres. In terms of economic status, the city is Latin America's powerhouse. Its economy is based on a strong technological basis.
- The state produces high-value goods in aviation, oil and gas, information and communications technology (ICT), and the green economy. Its GDP increased by 2.6% in 2020, twice the national average. Rio de Janeiro is Brazil's second-largest regional economy and financial hub. It is important at the national level because many of Brazil's most prominent companies, including mining, oil, and telecommunications companies, have headquarters in the city.
- These factors may further offer favorable conditions for the growth of the data center market in the region. The Rest of Brazil includes Brasilia, Ceara, Canoas, Curitiba, Porto Alegre, and Others. In April 2022, with the aid of a USD 31 million loan approved by the Inter-American Development Bank, the Brazilian state of Ceara accelerated the digital transformation of its government to boost citizen satisfaction and reduce the use of public services. This move may assist in enhancing digital transformation and connectivity in Ceara.
Brazil Data Center Construction Industry Overview
Brazil Data Center Construction Market is fairly consolidated, some significant players include AECOM, NetApp, Oracle, Pure Storage and Aceco TI.
Brazil Data Center Construction Market Leaders
AECOM
NetApp
Oracle
Pure Storage
Aceco TI
*Disclaimer: Major Players sorted in no particular order
Brazil Data Center Construction Market News
- November 2022: Ascenty will invest $1.5 billion (US$290 million) in constructing five new data centers in South America. The locations of the data centers will be Brazil, Chile, and Colombia.
- October 2022: Equinix opened a brand-new hyperscale data center in So Paulo, Brazil. The new SP5x facility, situated in Santana de Parnaba close to the organization's SP3 IBX data center, has a capacity of roughly 5MW in its initial phase. After all phases are finished, the data center should have a total capacity of 14.4MW. According to the business, it plans to spend $116.4 million on the facility.
Table of Contents
1. INTRODUCTION
1.1 Study Assumption & Market Definition
1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. MARKET INSIGHTS
5. Market Overview
6. Industry Attractiveness - Porter's Five Forces Analysis
6.1 Bargaining Power of Suppliers
6.2 Bargaining Power of Buyers
6.3 Threat of New Entrants
6.4 Threat of Substitutes
6.5 Degree of Competition
7. Key Industry Statistics
7.1 Planned/Under Construction IT Load Capacity
7.2 Planned/Under Construction Raised Floor Space
7.3 Planned/Under Construction Racks
7.4 Planned Submarine Cable
8. MARKET DYNAMICS
9. Market Drivers
9.1 Growth in Network Connectivity and Increased Adoption of Digital Transformation Related Technologies in the Region
9.2 Favorable tax Incentive Structure Introduced by Local Governments has Led to the Higher Participation from International Players
9.3 Ongoing Consolidation Efforts by Major Data Center Construction Companies to Aid their Expansion Activities
9.4 Growing Awareness on Modular Deployments and Increasing Rack Density
10. Market Restraints
10.1 Cost and Infrastructural Concerns Continue to be a Concern
10.2 Workforce-Related Challenges
11. MARKET SEGMENTATION
11.1 By Infrastructure
11.1.1 Electrical Infrastructure
11.1.1.1 UPS Systems
11.1.1.2 Other Electrical Infrastructures
11.1.2 Mechanical Infrastructure
11.1.2.1 Cooling Systems
11.1.2.2 Racks
11.1.2.3 Other Mechanical Infrastructures
11.1.3 Other Infrastructures
11.2 By End User
11.2.1 IT & Telecommunication
11.2.2 BFSI
11.2.3 Government
11.2.4 Healthcare
11.2.5 Other End Users
12. COMPETITIVE LANDSCAPE
13. Company Profiles
13.1 Turner Construction Co.
13.2 DPR Construction Inc.
13.3 Fortis Construction
13.4 ZFB Group
13.5 Aceco TI
13.6 AECOM Limited
13.7 Constructora Sudamericana S.A
13.8 HostDime Brasil
13.9 CyrusOne Inc.
13.10 RITTAL Sistemas Eletromecânicos Ltda. (Rittal GmbH & Co. KG)
13.11 Nakano Corporation
13.12 Oracle
13.13 Delta Group
13.14 Ascenty Data Centers E Telecomunicacoes
13.15 Equnix Inc.
13.16 Aceco TI
13.17 Constructora Sudamericana
13.18 NetApp
13.19 Oracle
13.20 Pure Storage
- *List Not Exhaustive
14. INVESTMENT ANALYSIS
15. MARKET OPPORTUNITIES AND FUTURE TRENDS
Brazil Data Center Construction Industry Segmentation
A data center is a physical room, building, or facility that holds IT infrastructure used to construct, run, and provide applications and services and store and manage the data connected with them. Under data center construction, we track the capital expenditure incurred while building the existing DC facilities and estimate the future capex based on upcoming DC facilities.
Brazil's Data Center Construction Market is segmented by infrastructure (electrical infrastructure (UPS systems, other electrical infrastructure), mechanical infrastructure (cooling systems, racks, other mechanical infrastructure), and other infrastructure), by end-user (banking, financial services, and insurance, IT and telecommunications, government, healthcare, and other end users). The market sizes and forecasts are provided in terms of value in USD for all the above segments.
| By Infrastructure | |||||
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| Other Infrastructures |
| By End User | |
| IT & Telecommunication | |
| BFSI | |
| Government | |
| Healthcare | |
| Other End Users |
Frequently Asked Questions
What is the current Brazil Data Center Construction Market size?
The Brazil Data Center Construction Market is projected to register a CAGR of 7.58% during the forecast period (2024-2030)
Who are the key players in Brazil Data Center Construction Market?
AECOM, NetApp, Oracle, Pure Storage and Aceco TI are the major companies operating in the Brazil Data Center Construction Market.
What years does this Brazil Data Center Construction Market cover?
The report covers the Brazil Data Center Construction Market historical market size for years: . The report also forecasts the Brazil Data Center Construction Market size for years: 2024, 2025, 2026, 2027, 2028, 2029 and 2030.
Brazil Data Center Construction Industry Report
Statistics for the 2024 Brazil Data Center Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Brazil Data Center Construction analysis includes a market forecast outlook to for 2024 to (2024to2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
