Who are the key players in South America Data Center Construction Market?

AECOM, DPR Construction Inc., Rider Levett Bucknall, McCarthy Building Companies and Whiting-turner Contracting Company are the major companies operating in the South America Data Center Construction Market. Read More

What years does this South America Data Center Construction Market cover, and what was the market size in 2023?

In 2023, the South America Data Center Construction Market size was estimated at USD 4.36 billion. The report covers the South America Data Center Construction Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the South America Data Center Construction Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029. Read More

South America Data Center Construction Market Size

Market Size of South America Data Center Construction Industry

South America Data Center Construction Market Summary

Study Period	2019 - 2029
Base Year For Estimation	2023
Market Size (2024)	USD 4.80 Billion
Market Size (2030)	USD 8.10 Billion
CAGR (2024 - 2030)	9.11 %
Market Concentration	Low
Major Players *Disclaimer: Major Players sorted in no particular order

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.

Market Segmentation - By Infrastructure

Market Segmentation - By Electrical Infrastructure

Power Distribution Solution

PDU - Basic & Smart - Metered & Switched solutions

Transfer Switches
	Static
	Automatic (ATS)

Switchgear
	Low-Voltage
	Medium-Voltage

Power Panels and Components

South America Data Center Construction Market Size Summary

The South American data center construction market is experiencing robust growth, driven by increasing demand from sectors such as cloud services, telecommunications, and banking. Brazil and Chile are at the forefront, with Brazil benefiting from government incentives and significant investments from colocation providers and telecom operators. Chile's competitive energy prices and strong telecommunications infrastructure make it an attractive location for data center investments. Argentina is also emerging as a key player, with Buenos Aires being the primary investment hub. The region is witnessing a digital transformation, particularly in fintech and digital banking, which is further fueling the demand for data centers.

The market is characterized by a fragmented landscape with major players like ABB, Legrand, AECOM, and Fortis Construction actively participating. Recent investments include Ascenty's construction of new data centers across Brazil, Chile, and Colombia, and Scala Data Centers' launch of the largest vertical data center in Latin America. These developments underscore the region's potential as a significant data center hub, supported by advancements in renewable energy and regulatory improvements. The ongoing construction of submarine cables and the rollout of 5G technology are expected to enhance connectivity and capacity, further boosting the market's growth prospects.

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South America Data Center Construction Market Size - Table of Contents

1. MARKET SEGMENTATION
1. 1.1 Market Segmentation - By Infrastructure
  1. 1.1.1 Market Segmentation - By Electrical Infrastructure
    1. 1.1.1.1 Power Distribution Solution
      1. 1.1.1.1.1 PDU - Basic & Smart - Metered & Switched solutions
      2. 1.1.1.1.2 Transfer Switches
        
        1.1.1.1.2.1 Static
        
        1.1.1.1.2.2 Automatic (ATS)
      3. 1.1.1.1.3 Switchgear
        
        1.1.1.1.3.1 Low-Voltage
        
        1.1.1.1.3.2 Medium-Voltage
      4. 1.1.1.1.4 Power Panels and Components
      5. 1.1.1.1.5 Other Power Distribution Solutions
    2. 1.1.1.2 Power Back-up Solutions
      1. 1.1.1.2.1 UPS
      2. 1.1.1.2.2 Generators
    3. 1.1.1.3 Service - Design & Consulting, Integration, Support & Maintenance
  2. 1.1.2 Market Segmentation - By Mechanical Infrastructure
    1. 1.1.2.1 Cooling Systems
      1. 1.1.2.1.1 Immersion Cooling
      2. 1.1.2.1.2 Direct-To-Chip Cooling
      3. 1.1.2.1.3 Rear Door Heat Exchanger
      4. 1.1.2.1.4 In-Row and In-Rack Cooling
    2. 1.1.2.2 Racks
    3. 1.1.2.3 Other Mechanical Infrastructure
  3. 1.1.3 General Construction
2. 1.2 Market Segmentation - By Tier Type
  1. 1.2.1 Tier-I and II
  2. 1.2.2 Tier-III
  3. 1.2.3 Tier-IV
3. 1.3 Market Segmentation - By End User
  1. 1.3.1 Banking, Financial Services, and Insurance
  2. 1.3.2 IT and Telecommunications
  3. 1.3.3 Government and Defense
  4. 1.3.4 Healthcare
  5. 1.3.5 Other End Users
4. 1.4 Market Segmentation - By Geography
  1. 1.4.1 Brazil
  2. 1.4.2 Chile
  3. 1.4.3 Rest of South America

South America Data Center Construction Market Size FAQs

How big is the South America Data Center Construction Market?

The South America Data Center Construction Market size is expected to reach USD 4.80 billion in 2024 and grow at a CAGR of 9.11% to reach USD 8.10 billion by 2030.