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Latin America data center construction market to reach $1.54 Billion by 2027. Deployment of Microgrids Gaining Momentum – Arizton

·10 min read
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The Latin America data center construction market was valued at $1 billion in 2021 and is expected to reach $1.54 billion by 2027.

Chicago, June 20, 2022 (GLOBE NEWSWIRE) -- According to Arizton’s latest research report, the Latin America data center construction market is expected to grow at a CAGR of 7% during 2022-2027. In recent years, Latin American data center market is attracting significant investments, led by countries such as Brazil, Chile, Colombia, Mexico, Bolivia, and Argentina. The growth of strong fiber connectivity, reliability in power supply, and high demand for data center services from industries such as BFSI, IT, and healthcare are the major factors that drive service providers to develop data centers in the region.

Countries in Latin America have increasingly been adopting microgrids in their facilities. For instance, Peru has awarded a renewable energy tender to EDF Renewables to build and operate 100 MW of PV and over 100 MWh of battery storage. EDF Renewables’ microgrid offering will supply low-carbon electricity to the microgrid network of a town in Peru.

Latin America Data Center Construction Market Report Scope

Report Attributes

Details

MARKET SIZE (2027)

$1.54 Billion

MARKET SIZE (2021)

$1 Billion

MARKET SIZE -AREA (2027)

1,405 million Square Feet

POWER CAPACITY (2027)

285.5 MW

CAGR (2022-2027)

7%

 

BASE YEAR

2021

 

FORECAST YEAR

2022-2027

MARKET SEGMENTS

Infrastructure (Electrical Infrastructure, Mechanical Infrastructure, and General Construction), IT infrastructure (Server, Storage, and Network), Electrical Infrastructure (UPS Systems, Generators, Transfer Switches & Switchgear, Power Distribution Units (PDUs), and Other Electrical Infrastructure), Mechanical Infrastructure (Cooling Systems, Racks, and Other Mechanical Infrastructure), Cooling Systems ( CRAC & CRAH Units, Chiller Units, Cooling Towers, Condensers and Dry Coolers, Economizer and Evaporative Coolers, and Other Cooling Units), Cooling Technique (Air-Based Cooling Technique and Liquid-Based Cooling Technique), General Construction (Core and Shell Development, Installation and Commissioning Services, Engineering and Building Design, Physical Security, Fire Detection and Suppression, and DCIM/BMS Solutions), Tier Standards (Tier I & II, Tier III, and Tier IV)

GEOGRAPHIC ANALYSIS

Latin America

COUNTRIES COVERED

Brazil, Mexico, Colombia, Chile, and Rest of Latin America

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Key highlights

  • The Latin America data center construction market is underdeveloped compared to major markets such as North America and Europe; however, is expected to grow rapidly, spurred by increasing digitalization, government support, and adoption of cloud and big data analytics.

  • Data centers in Latin America are increasingly built according to major construction parameters and standards, such as Uptime Institute’s Tier standards, LEED Certification, TIA 942, and ANSI/BICSI 002-2019 certifications.

  • There are significant opportunities in the market emanating from the rapid adoption of cloud, with cloud service providers such as Google and Microsoft setting up cloud regions in Tier I countries, as well as expanding their reach via on-ramps and local zones in Tier II and Tier III countries.

  • Within Latin America, Brazil is the leader in data center construction, with over 50% of the market investment, followed by Mexico, Chile, and Columbia. Modular data centers will lead the market in Caribbean and Paraguay.

  • Increasing data center construction has also increased opportunities for construction contractors and sub-contractors in the market. Some major vendors involved in data center construction include Constructora Sudamericana, AECOM, Fluor Corporation, and Jacobs Engineering, among others.

Competitive Overview

In Latin America, the data center market has the presence of both global and local infrastructure providers. There are several infrastructure providers involved in offering specific products or complete power infrastructure solutions for data centers. Many data center operators are also adopting units from different vendors to provide efficient cooling solutions. In Latin America, the market for chilled water systems units, CRAH & CRAC units, and air chillers is high and is increasing gradually YoY, as a majority the data center facilities are adopting these cooling systems. The market for DCIM and BMS solutions is likely to grow significantly during the forecast period. The development of mega data centers with thousands of racks of infrastructure will be the major revenue generator for DCIM and BMS solution providers.

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

Market Segmentation Analysis

The electrical infrastructure segment will witness the rising adoption of redundant infrastructure among data centers. In Latin America, the demand for DRUPS systems and generators accounts for the major revenue growth in the market for electrical infrastructure. Most data centers now have on-site fuel storage that can power data center operations for at least 72 hours in the event of a power loss. It has been witnessed that the most common redundancy for UPS systems and generators in the market is N+1. Ascenty, a leading data center operator in Latin America, has adopted N+1 redundant configuration in its data center facilities.

Market Segmentation:

  • Electrical Infrastructure

    • UPS Systems

    • Generators

    • Switches & Switchgears

    • PDUs

    • Other Electrical Infrastructure

  • Mechanical Infrastructure

    • Cooling Systems

    • Rack Cabinets

    • Other Mechanical Infrastructure

  • Cooling Systems

    • CRAC and CRAH Units

    • Chillers Units

    • Cooling Towers, Condensers, and Dry Coolers

    • Other Cooling Units

  • Cooling Techniques

    • Liquid-Based

    • Air-Based

  • General Construction

    • Core & Shell Development

    • Installation & commissioning Services

    • Building & Engineering Design

    • Fire Detection & Suppression Systems

    • Physical Security

    • Data Center Infrastructure Management (DCIM)

  • Tier Standard

    • Tier I & Tier II

    • Tier III

    • Tier IV

  • Geography

    • Brazil

    • Mexico

    • Colombia

    • Chile

    • Rest of Latin America

Table of Content

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

4.4.1 Market Segmentation by Infrastructure

4.4.2 Market Segmentation by Electrical Infrastructure

4.4.3 Market Segmentation by Mechanical Infrastructure

4.4.4 Market Segmentation by Cooling Systems

4.4.5 Market Segmentation by Cooling Techniques

4.4.6 Market Segmentation by General Construction

4.4.7 Market Segmentation by Tier Standards

4.4.8 Market Segmentation by Geography

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

8.2.1 Uptime Institute Tier Standards

8.2.2 Leed Certification

8.2.3 Tia 942 Certification

8.2.4 Ansi/Bicsi 002-2019 Certification

8.3 Construction Costs in Latin America

8.3.1 Brazil

8.3.2 Mexico

8.3.3 Chile

8.3.4 Colombia

8.3.5 Argentina

8.4 Data Center Site Selection Criteria

8.4.1 Key

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

12.5.1 Threat of New Entrants

12.5.2 Bargaining Power of Suppliers

12.5.3 Bargaining Power of Buyers

12.5.4 Threat of Substitutes

12.5.5 Competitive Rivalry

13 Infrastructures

13.1 Market Snapshot & Growth Engine

13.2 Electrical Infrastructure

13.2.1 Market Overview

13.2.2 Market Size & Forecast

13.3 Mechanical Infrastructure

13.3.1 Market Overview

13.3.2 Market Size & Forecast

13.4 General Construction

13.4.1 Market Overview

13.4.2 Market Size & Forecast

14 Electrical Infrastructures

14.1 Market Snapshot & Growth Engine

14.2 Ups Systems

14.2.1 Market Overview

14.2.2 Market Size & Forecast

14.3 Generators

14.3.1 Market Overview

14.3.2 Market Size & Forecast

14.4 Transfer Switches & Switchgear

14.4.1 Market Overview

14.4.2 Market Size & Forecast

14.5 Power Distribution Units

14.5.1 Market Overview

14.5.2 Market Size & Forecast

14.6 Other Electrical Infrastructure

14.6.1 Market Overview

14.6.2 Market Size & Forecast

15 Mechanical Infrastructure

15.1 Market Snapshot & Growth Engine

15.2 Cooling Systems

15.2.1 Market Overview

15.2.2 Market Size & Forecast

15.3 Racks

15.3.1 Market Overview

15.3.2 Market Size & Forecast

15.4 Other Mechanical Infrastructure

15.4.1 Market Overview

15.4.2 Market Size & Forecast

16 Cooling Systems

16.1 Market Snapshot & Growth Engine

16.2 CRAC & CRAH Units

16.2.1 Market Overview

16.2.2 Market Size & Forecast

16.3 Chiller Units

16.3.1 Market Overview

16.3.2 Market Size & Forecast

16.4 Cooling Towers, Condensers & Dry Coolers

16.4.1 Market Overview

16.4.2 Market Size & Forecast

16.5 Economizers & Evaporative Coolers

16.5.1 Market Overview

16.5.2 Market Size & Forecast

16.6 Other Cooling Units

16.6.1 Market Overview

16.6.2 Market Size & Forecast

17 Cooling Technique

17.1 Market Snapshot & Growth Engine

17.2 Air-Based Cooling Technique

17.2.1 Market Overview

17.2.2 Market Size & Forecast

17.3 Liquid-Based Cooling Technique

17.3.1 Market Overview

17.3.2 Market Size & Forecast

18 General Construction

18.1 Market Snapshot & Growth Engine

18.2 Core & Shell Development

18.2.1 Market Overview

18.2.2 Market Size & Forecast

18.3 Installation & Commissioning Services

18.3.1 Market Overview

18.3.2 Market Size & Forecast

18.4 Engineering & Building Design

18.4.1 Market Overview

18.4.2 Market Size & Forecast

18.5 Fire Detection & Suppression

18.5.1 Market Overview

18.5.2 Market Size & Forecast

18.6 Physical Security

18.6.1 Market Overview

18.6.2 Market Size & Forecast

18.7 DCIM/BMS Solutions

18.7.1 Market Overview

18.7.2 Market Size & Forecast

19 Tier Standards

19.1 Market Snapshot & Growth Engine

19.2 Overview of Tier Standards

19.3 Tier I & II

19.3.1 Market Overview

19.3.2 Market Size & Forecast

19.4 Tier III

19.4.1 Market Overview

19.4.2 Market Size & Forecast

19.5 Tier IV

19.5.1 Market Overview

19.5.2 Market Size & Forecast

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