DUBLIN, Sept. 13, 2019 /PRNewswire/ -- The "Data Center Construction Market in Latin America - Industry Outlook and Forecast 2019-2024" report has been added to ResearchAndMarkets.com's offering.
The Latin America data center construction market is witnessing significant investments from data center operators such as Ascenty (Digital Realty and Brookfield Infrastructure), Equinix, ODATA, Telefnica, Axtel, Telecarrier, and Entel. The adoption of cloud-based and managed services and colocation and cloud connectivity services is expected to be a major driver for Latin America data center market growth. The growing number of data centers in Latin America and the increase in awareness to reduce energy consumption have led to the higher adoption of DCIM solutions, which bring significant saving to data center OPEX.
Hence, the growing implementation of DCIM solutions in data centers is likely to drive the market in Latin America. Further, the use of artificial intelligence and robot monitoring systems is also expected to contribute to the growth of Latin America data center construction market during the forecast period.
The availability of tax incentives in several Latin American countries for the data center development for both local and global investors is one of the major factors driving the Latin America data construction market during the forecast period.
The following factors are likely to contribute to the growth of the Latin America data center construction market during the forecast period:
- Increased interest of modular/ containerized/ POD data center deployment
- Increased adoption of free cooling in data centers
- Adoption of edge data centers deployments
Latin America Data Center Construction Market: Segmentation
This research report includes detailed market segmentation by infrastructure, general construction, mechanical infrastructure, tier standards, and geography. The demand for generators in the Latin America data center market is expected to grow significantly due to the unreliability of power supply in several countries in Latin America. However, to reduce carbon emission, natural gas and bi-fuel generators are expected to gain traction in the market.
The use of DRUPS systems is likely to gain prominence in the region, as they combine both battery and flywheel UPS topology with a diesel generator to provide backup during power outages. UPS systems of 2N redundancy are likely to gain significant traction in the Latin America data center construction market due to the increasing Greenfield data center development (generally more than 10MW). The market will also witness the emergence of lithium-ion battery systems as they are more efficient and safer than VRLA batteries.
The growing number of greenfield and modular facilities projects is likely to continue in the market over the next few years. The modular construction will add significant revenue to the market during the forecast period. Besides, the need for the skilled workforce with expertise in the construction and operation of facilities is likely to grow in the Latin America data center construction market. Due to increased uptime and efficacy, the adoption of tier III standards comprising N+1 redundancy will gain propulsion, thus driving the Latin America data center construction market.
The growth of cooling system markets depends on the construction of data centers, type of adopted systems, redundancy, cost, and growth of rack power density. The growing construction of data centers in Latin America will increase the adoption of 45U, 47U, and 48U rack units. The market will also witness increased containment-based design with up to 20 racks. Further, piping units, pump systems, and valves used during the construction of facilities are major revenue generators for the other infrastructure segment.
Over 85% of certified data centers are Tier III types. Most facilities in Brazil, Colombia, Chile, Argentina, Mexico, and Peru are Tier III certified. However, several facilities are being constructed as colocation data centers. Most new facilities are designed as per Tier III standards with a minimum of N+1 redundancy; however, flexible design can help them to be reconfigured up to 2N+1 redundancy as and when the demand arises. The increased investment by hyperscale developers and the adoption of modular data centers of tier IV standards are expected to boost the Latin America data center construction market.
Market Growth Enablers
- Demand for Cloud, Colocation, & Managed Service Providers
- Rising Interest for Modular/Containerized/POD Data Center Deployment
- Growth in Construction of Green Data Centers
- Growth of Network Connectivity & High-speed Bandwidth
- Increased Tax Incentives & Low Cost of Data Center Construction
Market Growth Restraints
- Lack of Skilled Workforce
- Location Constraints for Data Center Construction
- High Cost of Data Center Infrastructure
Market Opportunities & Trends
- Increased Adoption of DCIM Solutions
- Growing Rack Power Density in Data Centers
- Increasing Adoption of Free Cooling in Data Centers
- Shift to Edge Data Center Deployments
Latin America Data Center Construction Market: Geography
The data center construction market in Brazil is expected to attract high investments from colocation providers during the forecast period. For instance, The national innovation and technology funding agency FINEP (Funding Authority for Studies and Projects) will allocate $670 million to Brazilian Smart Industry projects. Thus, the increased investment will boost the Latin America data center construction market.
Colombia is widely gaining momentum in the data center construction market due to the availability of infrastructure and tax incentives. Further, the increased number of mobile devices and access to the internet will likely to add a greater number of facilities during the forecast period. The growing demand for cloud-based services, internet of things (IoT) and big data analytics has significantly contributed to the growth of the data center market in Chile. Also, substantial investment from big cloud providers such as Google in Chile will bring new job opportunities in the country, thereby boosting the Latin America data center construction market. The investment in improving the digital economy is expected to drive the market among the rest of the countries in Latin America.
Key Vendor Analysis
The Latin America data center construction market is continuing to grow in terms of greenfield and modular data center construction projects. The market is witnessing the increased growth in the region, with high adoption of efficient and modular data center infrastructure solutions. The strong presence of vendors across all three categories - electrical infrastructure, mechanical infrastructure, and general construction - is expected to boost the Latin America data center construction market during the forecast period.
Key Construction Vendors
- ConstuctoraSudamericana S.A.
- Aceco TI
- ZFB Group
Key Infrastructure Providers
- KINOLT (Euro-Diesel)
- Schneider Electric
Key Data Center Investors
- Tigo (MALLICOM)
Prominent Construction Contractors
- Fluor Corporation
- Holder Construction
- Mortenson Construction
Prominent Infrastructure Providers
- Active Power
- Alfa Laval
- Assa Abloy
- Axis Communications
- Bosch Security Systems
- Daikin Applied
- Delta Group
- Generac Power System
- Honeywell International
- Intel DCM
- Nortek Humidity
Prominent Data Center Investors
- GTD Group
For more information about this report visit https://www.researchandmarkets.com/r/wzkzo6
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