South America Data Center Construction Market Size (2024 - 2029)

South America Data Center Construction Market Analysis

The South America Data Center Construction Market size is estimated at USD 4.80 billion in 2024, and is expected to reach USD 8.10 billion by 2030, growing at a CAGR of 9.11% during the forecast period (2024-2030).

• The upcoming IT load capacity in South America is expected to reach more than 1,800 MW by 2030 for under construction IT load capacity.
• The construction of raised floor area for data centers in the region is expected to reach more than 7 million sq. ft by 2030 for under construction raised floor space.
• The region's total number of racks to be installed is expected to reach above 250,000 units by 2030, with Brazil expected to house the maximum number of racks by that time for planned racks.
• The region is witnessing rising submarine cable projects. One such submarine cable, estimated to start service in 2025, is Caribbean Express (CX), stretching over 3,472 kilometers with landing points from Cartagena, Colombia, for planned submarine cables.
• Latin America is one of the developing regions for the data center market. The region is seeing more installations of submarine network connectivity, leading to higher data center development driven by efforts from government agencies, telecommunication service providers, and utility providers. Latin America is connected by 68 submarine cables, which has increased the region's capacity five-fold in the last 20 years. Brazil and Chile have the highest number of data centers in terms of massive, large, and medium-sized facilities.

South America 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 those applications and services. Under data center construction, the report tracks the capital expenditure incurred while building the existing data center facilities and also estimates the future CAPEX based on upcoming data center facilities.

The South American data center construction market is segmented by infrastructure (electrical infrastructure (power distribution solution [PDU, transfer switches, switchgear, power panels and components, and other power distribution solutions)], power back-up solution (UPS and generators), and service – design & consulting, integration, support & maintenance)), mechanical infrastructure (cooling systems [immersion cooling, direct-to-chip cooling, rear door heat exchanger, in-row and in-rack cooling]), racks, and other mechanical infrastructure), and general construction), tier type (tier 1 and 2, tier 3, and tier 4), end user (banking, financial services, & insurance, IT & telecommunications, government & defense, healthcare, and other end users), and geography (Brazil, Chile, and Rest of South America). The market sizes and forecasts are provided in value (USD) for all the above segments.