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 operators 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

For more information about this report visit https://www.researchandmarkets.com/r/uryvor

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