Latin America Data Center Construction Market Size

Latin America Data Center Construction Market Analysis

The Latin America Data Center Construction Market size is estimated at USD 5.14 billion in 2024, and is expected to reach USD 7.81 billion by 2029, growing at a CAGR of greater than 8.71% during the forecast period (2024-2029).

The growth of advanced technologies such as software-defined data centers, the Internet of Things (IoT), and disaster recovery fed the demand for the construction of data centers in Latin America.

• Data center construction is a very complex task requiring extensive planning of electrical, location, and mechanical requirements. Moreover, the data centers carry out mission tasks, due to which any imperfection in power management to building design could be catastrophic and could result in increased costs to the companies.
• The need for data centers has increased in recent years, with the growth of digital infrastructure due to the high adoption of cloud services. During that period, the widespread expansion of cloud services was restrained by the limited storage available at the data centers.
• Subsequently, the concept of hyperscale data centers and colocation data centers emerged. The construction of hyperscale data centers and colocations data centers is expected to drive the demand for data center construction in the future.
• The rapid proliferation of mobile devices and high-speed broadband connectivity is attributed to the growth of the data center construction market in the Latin American region. Moreover, the increasing demand for connected devices and the introduction of new technologies, such as IoT, cloud-based services, and big data analytics, are boosting the demand for new facilities in the region.
•  In September 2023, Saala Data Centers, one of the leading Latin American platforms of sustainable data centers in the Hyperscale market, announced its role as the exclusive Sustainability Partner at Datacloud USA 2023. The collaboration with Datacloud USA reinforces sustainable initiatives and underscores scala's hyperscale sustainable data center evolution in Latin America
• The increasing investment in building new data centers in Latin American countries, such as Brazil, is expected to drive market growth over the forecast period. Brazilian company AMT (Agência Moderna Tecnologia) selected CenturyLink to meet its growing demand for cloud services as part of business expansion with management systems provider Sankhya for data center services in Rio de Janeiro. The CenturyLink modular data center in Rio de Janeiro provides customers with a processing environment designed to offer high levels of availability, improved quality, and greater access speeds to the rest of the world.
• The investments in data centers and advanced information processing structures have accelerated in Latin America, despite the COVID-19 crisis. Various companies in the market have announced their moves for the construction of data centers.