Brazil Data Center Construction Market Size
| Study Period | 2024 - 2030 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 3 Billion |
| Market Size (2030) | USD 6.30 Billion |
| CAGR (2024 - 2030) | 13.03 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Brazil Data Center Construction Market Analysis
The Brazil Data Center Construction Market size is estimated at USD 3 billion in 2024, and is expected to reach USD 6.30 billion by 2030, growing at a CAGR of 13.03% during the forecast period (2024-2030).
Factors influencing the growth of the Brazilian data center construction market include the rising adoption of cloud-based services, the country's expanding digital economy, increased integration of AI technologies, the ongoing deployment of 5G networks, and a notable shift toward renewable energy sourcing.
- Under Construction IT Load Capacity: The upcoming IT load capacity of the Brazilian data center construction market is expected to reach 1,390 MW by 2030.
- Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase by 4.9 million sq. ft by 2030.
- Planned Racks: The country's total number of racks to be installed is expected to reach 249 thousand units by 2030.
- Planned Submarine Cables: Close to 15 submarine cable systems connect Brazil, and many are under construction. One such submarine cable, estimated to be built by the end of 2024, is Firmina, which stretches over 14,517 km with landing points in Las Toninas, Argentina, Praia Grande, Brazil, Myrtle Beach, SC, United States, and Punta del Este, Uruguay.
Brazil Data Center Construction Market Trends
IT and Telecom to Register a Significant Market Share
- Since 2021, the demand for IT services, crucial for business continuity and bolstering organizational resilience, has been on a steady rise. In 2021, Scala Data Center initiated the construction of its SP4 facility, with an initial launch target set for April 2022. Notably, the SP4 facility, boasting an 18-MW capacity, was entirely allocated to a single-tenant cloud provider, underscoring the escalating demand for cloud services within the nation.
- According to SAP Brasil's press release on January 2024, as economic growth resumed and organizations increasingly turned to cloud solutions, coupled with the integration of artificial intelligence in business management, the company saw a notable upturn in 2023. The subsidiary notched up robust double-digit growth in both total revenue and cloud revenue, surpassing its 2022 figures. This growth was primarily fueled by the rising appetite for cloud-based ERP systems. These systems are known for their standardized, updatable platforms, amalgamated management, data analytics, application development, automation, and AI functionalities.
- The key players in the region are focusing on expanding cloud services in order to serve the growing requirement for cloud solutions in the region. For instance, in November 2023, Huawei announced the construction of a third availability zone for its Brazilian cloud region, set to be operational in the first quarter of 2024. Additionally, the company is in the planning stages for a third availability zone in Mexico.
- The telecom segment is expanding at a rapid pace in the region. For instance, according to a recent report by the telecom association GSMA, 5G subscribers in Brazil are expected to surge to 179 million by 2030, a significant increase from 36.2 million in 2025. The report highlights a projected 5G penetration rate of 16% by 2025, set to soar to 77% by 2030.
- The association also highlighted that Brazilian operators are actively considering 5G fixed wireless access (FWA) solutions. Projections suggest a robust growth rate of approximately 190% annually for 5G FWA connections in Brazil over the next four years. The GSMA anticipates that by 2025, Brazil will boast over 1 million 5G FWA connections.
- This surge in data storage demand is poised to elevate the need for data centers in the region, thereby bolstering the prospects of data center construction firms in the coming years.
Tier 3 is Expected to Hold a Major Share of the Market Studied
- In 2023, there were 68 data centers in Brazil with tier 3 certification, with a cumulative IT load capacity of 440 MW. Reliability and affordability are the major factors driving the demand for tier 3 data centers in the country. The segment is projected to register a CAGR of 8.2% to reach 869 MW by 2030.
- In 2023, Sao Paulo hosted the maximum number of tier 3 data centers in the country, with a market share of 72.2%, followed by Rio de Janeiro at 10.8% and other hotspots (Ceara, Cascavel, Curitiba, Ribeirao Preto, and other regions) at 17%.
- When it comes to IT load, the majority of tier 3 data centers in the region prioritize catering to large and massive loads, with large centers leading at 54.5%, followed by massive at 26.6%. Medium and small loads, while less common, still account for significant portions at 17.6% and 1.6%, respectively.
- In 2023, Ascenty Data Centers (now under Digital Realty) led the market with 20 data centers, boasting a dominant 35.9% share and holding a tier 3 certification. Equinix Inc. followed closely, operating seven facilities and capturing an 11.2% market share. Cirion Technologies, now part of Lumen Technologies, maintained a 9.6% share across its three facilities. Scala Data Centers, with six facilities, secured a 7.8% share. The remaining market share was distributed among various other players.
- Over 16 data center facilities are under construction in the country, all adhering to tier 3 standards. Key players leading the tier 3 data center construction include Scala Data Centers (56 MW), Ascenty Data Centers (Digital Realty) (64 MW), and Nabiax (10.7 MW). The majority of these facilities are slated for completion in Sao Paulo, with a smaller number in Rio de Janeiro and other regions.
- Such instances in the market studied are expected to drive demand for tier 3-certified facilities. This surge in demand, specifically from the tier 3 segment, will, in turn, bolster the need for data center construction services in the years ahead.
Brazil Data Center Construction Industry Overview
The Brazilian data center construction market is moderately consolidated. Some of the major players in the market include AECOM, Jacobs Engineering Group, Turner & Townsend, Skanska, and Arup.
Brazil Data Center Construction Market Leaders
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AECOM
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Jacobs Engineering Group
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Turner & Townsend
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Skanska
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Arup
*Disclaimer: Major Players sorted in no particular order
Brazil Data Center Construction Market News
- June 2024: Scala, a prominent Brazilian data center operator, initiated construction on a new facility in Fortaleza. Situated at Av. Aldy Mentor, 371 - Manoel Dias Branco, in the state of Ceara, the campus is set to deliver an initial capacity of 7.2 MW. Employing Scala's innovative FastDeploy model, the first building, spanning 9,700 sq. m (104,410 sq. ft), will be followed by a second building covering 10,000 sq. m (107,640 sq. ft) and boasting a capacity of 13.5 MW. Additionally, the campus will house an on-site substation. The entire project is slated for completion by 2028.
- May 2024: Equinix announced a USD 94 million investment in its third data center in Rio de Janeiro, Brazil. The RJ3 facility will be situated in the Sao Joao de Meriti municipality, approximately 30 km from the Botafago neighborhood. With an anticipated opening in 2025, the data center will span 1,467 sq. m (15,800 sq. ft) and house 560 racks for colocation services.
- January 2024: Angola Cables announced its plans to construct a new data center in Fortaleza, Brazil. The company is set to invest approximately BRL 400 million (USD 80 million) in this endeavor, marking its second data center in the Ceara state capital. The new facility, spanning 960 sq. m (10,335 sq. ft), will be situated adjacent to the company's current data center. Construction is slated to commence in the latter half of 2024, with completion expected in 2025.
Brazil Data Center Construction Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions And Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Research Framework
2.2 Secondary Research
2.3 Primary Research
2.4 Data Triangulation and Insight Generation
3. EXECUTIVE SUMMARY
4. MARKET INSIGHT
4.1 Market Overview
4.2 Market Dynamics
4.2.1 Market Drivers
4.2.1.1 The Rising Adoption of Cloud Services by Brazilian Enterprises is Fueling the Demand For Data Centers in Brazil
4.2.1.2 The Government's Digital Initiatives Have Fueled a Surge in the Demand for Data Centers
4.2.2 Market Restraints
4.2.2.1 High Power Consumption and Emission Contribution of Data Centers
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitutes
4.3.5 Intensity of Competitive Rivalry
4.4 Key Brazil Data Center Construction Statistics
4.4.1 Number of Data Centers in Brazil, 2022 and 2023
4.4.2 Data Center Under Construction in Brazil, in MW, 2024 - 2029
4.4.3 Average CapEx and Opex for the Brazilian Data Center Construction Market
4.4.4 Data Center Power Capacity Absorption in MW, Selected Cities, Brazil, 2022 and 2023
4.4.5 The Top CapEx Spenders on Data Center Infrastructure in Brazil
5. MARKET SEGMENTATION
5.1 Market Segmentation - By Infrastructure
5.1.1 Market Segmentation - By Electrical Infrastructure
5.1.1.1 Power Distribution Solution
5.1.1.1.1 PDUs - Basic and Smart - Metered and Switched Solutions
5.1.1.1.2 Transfer Switches
5.1.1.1.2.1 Static
5.1.1.1.2.2 Automatic (ATS)
5.1.1.1.3 Switchgear
5.1.1.1.3.1 Low-voltage
5.1.1.1.3.2 Medium-voltage
5.1.1.1.4 Power Panels and Components
5.1.1.1.5 Others
5.1.1.2 Power Backup Solutions
5.1.1.2.1 UPS
5.1.1.2.2 Generators
5.1.1.3 Service (Design and Consulting, Integration, and Support and Maintenance)
5.1.2 Market Segmentation - By Mechanical Infrastructure
5.1.2.1 Cooling Systems
5.1.2.1.1 Immersion Cooling
5.1.2.1.2 Direct-to-chip Cooling
5.1.2.1.3 Rear Door Heat Exchanger
5.1.2.1.4 In-row and In-rack Cooling
5.1.2.1.5 Racks
5.1.2.1.6 Other Mechanical Infrastructures
5.1.3 General Construction
5.2 Market Segmentation - By Tier Type
5.2.1 Tier-I and-II
5.2.2 Tier-III
5.2.3 Tier-IV
5.3 Market Segmentation - By End User
5.3.1 Banking, Financial Services, and Insurance
5.3.2 IT and Telecommunications
5.3.3 Government and Defense
5.3.4 Healthcare
5.3.5 Other End Users
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 AECOM
6.1.2 Jacobs Engineering Group
6.1.3 Turner & Townsend
6.1.4 Skanska
6.1.5 Arup
6.1.6 Brookfield Brasil Ltda.
6.1.7 Goodman
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
9. ABOUT US
9.1 Industries Covered
9.2 Illustrative List of Clients in the Industry
9.3 Our Customized Research Capabilities
Brazil Data Center Construction Industry Segmentation
Data center construction combines physical processes used to construct a data center facility. It chains construction standards with data center operational environment requirements.
The Brazilian data center construction market is segmented by infrastructure (electrical infrastructure [power distribution solutions (PDUs, transfer switches, switchgear, power panels and components, and other power distribution solutions), power backup solutions (UPS and generators), and services (design and consulting, integration, and support and maintenance)], mechanical infrastructure [cooling systems (immersion cooling, direct-to-chip cooling, rear door heat exchanger, and in-row and in-rack cooling), racks, and other mechanical infrastructures], and general construction), tier type (tier 1 and 2, tier 3, and tier 4), and end user (banking, financial services, and insurance, IT and telecommunications, government and defense, healthcare, and other end users). The market sizes and forecasts are provided in terms of value (USD) for the above segments.
| Market Segmentation - By Infrastructure | ||||||||||||||||||||
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| General Construction |
| Market Segmentation - By Tier Type | |
| Tier-I and-II | |
| Tier-III | |
| Tier-IV |
| Market Segmentation - By End User | |
| Banking, Financial Services, and Insurance | |
| IT and Telecommunications | |
| Government and Defense | |
| Healthcare | |
| Other End Users |
Brazil Data Center Construction Market Research FAQs
How big is the Brazil Data Center Construction Market?
The Brazil Data Center Construction Market size is expected to reach USD 3 billion in 2024 and grow at a CAGR of 13.03% to reach USD 6.30 billion by 2030.
What is the current Brazil Data Center Construction Market size?
In 2024, the Brazil Data Center Construction Market size is expected to reach USD 3 billion.
Who are the key players in Brazil Data Center Construction Market?
AECOM, Jacobs Engineering Group, Turner & Townsend, Skanska and Arup are the major companies operating in the Brazil Data Center Construction Market.
What years does this Brazil Data Center Construction Market cover, and what was the market size in 2023?
In 2023, the Brazil Data Center Construction Market size was estimated at USD 2.61 billion. 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.
