Latin America Data Center Construction Market Industry Outlook & Market 2025-2030 | New Connectivity Horizons: Submarine and Inland Cables Transform Latin American Access. - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "Latin America Data Center Construction Market - Industry Outlook & Market 2025-2030" report has been added to ResearchAndMarkets.com's offering.

The Latin America Data Center Construction Market was valued at USD 1.58 Billion in 2024, and is projected to reach USD 4.40 Billion by 2030, rising at a CAGR of 18.61%.

The rising demand for data centers across the region will provide significant opportunities for construction contractors to generate revenue. Some of the well-known construction contractors in this field include AECOM, Turner Construction, KMD Architects, PQC, and Modular Data Centers.

The Latin America data center construction market has the presence of all the major global colocation operators, including Ascenty, Equinix, ODATA (Aligned Data Centers), Scala Data Centers, Elea Data Centers, Cirion Technologies, Tecto Data Centers (V.tal), and KIO Networks.

The major hyperscale operators investing in the Latin America data center construction market include Amazon Web Services (AWS), Microsoft, and Google. They are expanding their presence across all the top data center destinations in Latin America.

The Latin America data center construction market witnessed the entry of several new players such as 247 Data Centers, Ada Infrastructure, CloudHQ, Layer 9 Data Centers, Surfix Data Center, and MDC Data Centers.

LATIN AMERICA DATA CENTER CONSTRUCTION MARKET KEY TRENDS

Shift toward Sustainable Data Center Construction with Renewable Energy Integration

• In 2024, the Latin America data center construction market accounted for a significant shift toward sustainable construction and renewable energy integration due to rising energy costs and the environmental impact of high energy consumption.
• Investments in renewable energy partnerships and Power Purchase Agreements (PPAs) have become a trend among data center operators. For instance, investors are implementing innovative approaches, such as solar farms and wind power contracts, to secure a sustainable energy supply while reducing carbon footprints. Major global players, including Amazon Web Services (AWS), Google, and Microsoft, use renewable energy and improve energy efficiency, including facilities in Latin America.
• In August 2024, Scala Data Centers, in collaboration with Serena, announced renewable energy supply agreements in Latin America. The project will provide wind power to meet the demands of hyperscale data centers, including mixed AI workloads, which will be sourced from Bahia, Brazil, accounting for a capacity of 393 MW and it will begin in 2025.
• Google has committed to using renewable energy in more than 90% of its energy matrix in its Uruguay Data center.

Rise in Digital Economy and Smart City Development

• Latin America's digital economy has expanded rapidly, particularly through the quick expansion in e-commerce, financial technology (fintech), and digital services; this is propelling the demand for robust infrastructure. The COVID-19 pandemic accelerated this trend, making it essential for cities and businesses to rely on digital platforms to operate efficiently.
• With countries including Brazil, Chile, Mexico, and Colombia leading the charge, the digital transformation in Latin America aims to build more connected environments that support economic growth and innovation.
• In Mexico, 5 cities are aiming to become smart cities: Tequila, Jalisco; Ciudad Madera, Queretaro; Mexico City; Ciudad Creativa Digital (Jalisco); and Puebla, Smart City.
• Scala Data Centers, owned by Digital Bridge, is planning to build a large data center. The company acquired 700 hectares of land for the AI City in the municipality of Eldorado do Sul.

Enhancement in Submarine & Inland Connectivity

• Latin America is undergoing significant advancements in submarine and inland connectivity, with substantial investments and strategic partnerships aimed at modernizing infrastructure and expanding digital access across the region. There are more than 80 submarine cables connecting to Latin America, out of which 8 to 9 are expected to be deployed in or after 2025.
• One of the most ambitious projects underway is the Humboldt Cable System, which aims to connect Chile with the Asia Pacific region. Developed through a partnership between Chile's Fondo de Infraestructura and H2 Cable, this submarine cable will span approximately 14,810 kilometers, linking Chile to Sydney, Australia, and other locations in Asia Pacific. It will be operational from 2026.
• Parallelly, Liberty Networks and Gold Data have joined forces to develop a subsea cable network linking the US with Mexico and Latin America. This project, featuring the GD-1 and LN-1 cables, will offer one of the lowest-latency routes between the US and Mexico, extending connectivity to new data hubs in Colombia, Panama, and the Caribbean.

GEOGRAPHICAL ANALYSIS

• Brazil holds a significant share of the Latin America data center construction market. The country's digital transformation policies, coupled with widespread IoT and big data adoption, support major investments in data center infrastructure. It is leading in digital infrastructure expansion, driven by government-supported sustainability initiatives and a growing dependence on renewable energy for data centers.
• Chile is a hub for renewable energy sources; data center companies leverage this to maximize their sustainable practices and reduce their carbon footprint. There are more than 30 existing data centers in Santiago. The country has invested heavily in digital infrastructure to adopt e-commerce, streaming services, and online banking.
• Colombia, with its strategic location and stable economy, has become the ideal destination for businesses looking to establish their presence in Latin America. Its geographical location makes it an attractive place that is risk-free for business operations. Bogota is the primary hub for data center investment.
• Mexico's commitment to smart city initiatives is evident in cities such as Tequila, Ciudad Madera, Mexico City, Ciudad Creativa Digital, and Puebla, which are implementing digital infrastructure to support connectivity, IoT applications, and urban innovation. This smart city push, along with growing e-commerce and rapid internet penetration, is expanding Mexico's digital infrastructure needs and establishing a solid foundation for further data center investments across the country.
• Argentina, with seven operational submarine cables, is recognized as one of the best-connected countries in Latin America for data infrastructure. This extensive network enhances its connectivity within the region, supporting data center growth and international data exchange. The most prominent location is Buenos Aires.

LATIN AMERICA DATA CENTER CONSTRUCTION MARKET VENDORS

Key Data Center Support Infrastructure Providers

• ABB
• Alfa Laval
• Assa Abloy
• Axis Communications
• Bosch Security Systems
• Caterpillar
• Cummins
• Daikin Applied
• Delta Electronics
• EATON
• Honeywell
• Johnson Controls
• Legrand
• Mitsubishi Electric
• Munters
• Panduit
• Piller Power Systems
• Rolls-Royce
• Schneider Electric
• Siemens
• STULZ
• Vertiv

Prominent Construction Contractors

• AECOM
• Afonso Franca Engenharia
• Constructora Sudamericana
• Cundall
• DLR Group
• Fluor Corporation
• Gensler
• Grupo PML
• HDOS
• Holder Construction
• Hyphen
• Jacobs Engineering
• KMD Architects
• Mendes Holler
• Modular Data Centers
• PQC
• Quark
• Racional Engenharia
• Soben
• Syska Hennessey Group
• The Weitz Company
• Turner Construction
• Turner & Townsend
• Zeittec

Prominent Data Center Investors

• Actis (NextStream)
• Amazon Web Services
• Angola Cables
• Ascenty
• Ava Telecom
• Blue NAP Americas
• Cirion Technologies
• Claro
• DHAmericas
• Digicel
• EdgeConneX
• Elea Data Centers
• Equinix
• EVEO
• Google
• GTD
• HostDime
• InterNexa
• IPXON Networks
• KIO Networks
• Mexico Telecom Partners
• Microsoft
• Millicom (Tigo)
• ODATA (Aligned Data Centers)
• OneX Data Center
• Oxygen
• Quantico Data Center
• Scala Data Centers
• SONDA
• Takoda Data Centers
• Telecom Italia Sparkle
• Tecto Data Centers (V.tal)
• Win Empresas

New Entrants

• 247 Data Centers
• Ada Infrastructure
• CloudHQ
• Layer 9 Data Centers
• MDC Data Centers
• Surfix Data Center

   

Key Attributes:

Key Topics Covered:

Market Opportunities & Trends

• Advancement of AI & Automated Technologies in Data Center Operations
• Shift Toward Edge Computing & Localized Data Centers with 5G Technologies
• Shift Toward Sustainable Data Center Construction with Renewable Energy Integration
• Rise in Digital Economy and Smart City Development
• Government Initiatives and Incentives Boosting Data Center Investments

Market Growth Enablers

• Increasing Adoption for Cloud Services in Latin America
• Rising Data Center Investments and Activities
• Use of Big Data and IoT Applications
• Enhancement in Submarine & Inland Connectivity

Market Restraints

• Environmental and Regulatory Compliance Challenges
• Vulnerability to Natural Disasters and the Impact on Data Center
• Shortage of Skilled Workforce to Meet the Growing Data Center Demands
• Limited Infrastructure and Connectivity in Remote or Underdeveloped Areas
• Power Availability Challenges Disrupting Data Center Growth

Infrastructure

• Electrical Infrastructure
• Mechanical Infrastructure
• General Construction

Electrical Infrastructure

• UPS Systems
• Generators
• Transfer Switches & Switchgear
• PDUs
• Other Electrical Infrastructure

Mechanical Infrastructure

• Cooling Systems
• Racks
• Other Mechanical Infrastructure

Cooling Systems

• CRAC & CRAH Units
• Chillers Units
• Cooling Towers, Condensers, and Dry Coolers
• Other Cooling Units

Cooling Technique

• Air-based Cooling
• Liquid-based Cooling

General Construction

• Core & Shell Development
• Installation & Commissioning Services
• Engineering & Building Design
• Fire Detection & Suppression
• Physical Security
• DCIM/BMS Solutions

Tier Standards

• Tier I & Tier II
• Tier III
• Tier IV

Geography

• Brazil
• Chile
• Colombia
• Mexico
• Argentina
• Rest of Latin America

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