LATIN AMERICA DATA CENTER CONSTRUCTION MARKET

Analysts at GMI Research estimates that the Latin America Data Center Construction Market size was worth USD 7.2 billion in 2024 and forecast to touch USD 13.4 billion in 2032 growing at a CAGR of 8.1% from 2025-2032 driven by surging data demand across sectors and growing need for storing and processing data along with rising cloud computing adoption.

Major Market Drivers and Emerging Trends

Data center construction involves developing specialized facilities designed to support the growing demand for IT systems and data storage across various sectors. The surging data usage and the increasing focus on data security have made data protection core priorities for businesses in every industry. Power reliability along with cooling efficiency and physical security are the most critical factors to consider in regional data center construction.

The market is witnessing strong growth owing to the rising need for storing data. Leading companies are making investments to modernize data center infrastructure across the region. Urban centers like Sao Paulo are emerging to be major data center hubs driven by their strategic geographic positions along with solid infrastructure.

Cloud and edge computing adoption is further fueling the Latin America data center construction market growth. With digitalization and internet connectivity on the rise businesses are leveraging cloud solutions to streamline operations and improve flexibility while fostering innovation. Cloud computing provides accessibility which enables organizations to quickly deploy applications without relying on significant onsite infrastructure.

Furthermore the 5G networks deployment is accelerating the need for edge computing facilities to enable low latency applications. Brazil is leading the way in 5G rollout with significant investments anticipated in edge infrastructure to support this growth. 5G is projected to account for nearly sixty percent of mobile connections across Latin America.

Edge data centers are also vital for managing rising data traffic and enabling advanced technologies like IoT. Latin America is emerging as a major hub for AI powered data centers with Microsoft building a new center in Chile and working on AI initiatives to fight Amazon deforestation.

The region is also experiencing rising data center initiatives driven by global and local investors. Governments are offering tax incentives and introducing supportive regulations to encourage investments in data centers which drives further market growth. Submarine cable installations and improved connectivity infrastructure are also driving higher data transmission capacity.

Additionally the digital economy in Latin America is thriving largely propelled by the rapid rise of ecommerce and digital services. This growth is driving the need for reliable infrastructure to support it. The Covid pandemic significantly accelerated this transition which highlights the necessity for organizations to leverage digital platforms to maintain operational efficiency. Mexico and Brazil are leading the way in digital transformation across Latin America which aims to create connected environments to boost economic growth.

Even though data center growth in Latin America provides economic benefits it also raises serious environmental and social challenges. The significant water consumption needed to cool these facilities has become a highly debated concern. To tackle these issues, Latin American data centers are progressively implementing sustainable approaches. Emerging cooling solutions like liquid immersion cooling along with modern air conditioning are contributing to lower water and energy usage.

Furthermore the market is increasingly embracing sustainable construction along with renewable energy solutions driven by increasing energy costs and concerns over its environmental impact. Renewable energy collaborations and Power Purchase Agreements have become major trends within the data center sector. Investors are using strategies like solar farm development and wind power agreements to ensure an environmentally friendly energy source while minimizing carbon emissions. Google has made a commitment to powering over 90% within its energy needs at its data center in Uruguay.

Based on tier type, Tier III data centers represent a large portion of the new projects in the market. Uptime Institute data shows that Latin America has surpassed 200 Tier III certified data centers with Brazil contributing over 85 to that total. These data centers feature multiple power and cooling paths which allow maintenance along with upgrades without downtime.

Based on vertical, the IT and Telecom segment is projected to command a substantial market share. IT and telecommunications companies are making significant investments across the region. Cloud services and IoT expansion along with big data growth have supported telecom providers to strengthen their internet infrastructure. The BFSI industry also depends on strong data center infrastructure to securely and efficiently manage sensitive financial data which contributes to market growth. The government & defense segment is actively contributing to market growth through initiatives that promote cybersecurity improvements by developing advanced data infrastructure.

Top Market Players

Leading players in the market are Aceco TI, AECOM, Jacobs Engineering, Quark, Fluor Corporation, Zeittec among others.

Key Developments

• • In 2024, Serena and Scala Data Centers have joined forces to establish new agreements to source renewable energy throughout Latin America. This initiative will supply wind energy to support massive data centers like those handling diverse AI workloads with power generated in Brazil.

Segments covered in the Report:

The Latin America Data Center Construction Market has been segmented on the basis of Tier Type, Infrastructure and Vertical. Based on the Tier Type, the market is segmented into Tier 1, Tier 2, Tier 3, Tier 4 and other. Based on the By Infrastructure, the market is segmented into Cooling Infrastructure, Power Infrastructure, Racks and Cabinets, Servers, Networking Equipment, Physical Security Infrastructure, Design and Consulting Services and Other Infrastructure. The Cooling Infrastructure segment is further segmented into Air-based cooling, Liquid-based cooling and Evaporative cooling. The Power Infrastructure segment is further segmented into UPS Systems, Generators and Power Distribution Unit (PDU). Based on the Vertical, the market is segmented into IT & Telecom, BFSI, Government & Defense, Healthcare, Energy and Others.

Market Segmentation

Latin America Data Center Construction Market By Tier Type

• • Tier 1
  • Tier 2
  • Tier 3
  • Tier 4

Latin America Data Center Construction Market By Infrastructure

• • Cooling Infrastructure
    • Air-based cooling
    • Liquid-based cooling
    • Evaporative cooling
  • Power Infrastructure
    • UPS Systems
    • Generators
    • Power Distribution Unit (PDU)
  • Racks and Cabinets
  • Servers
  • Networking Equipment
  • Physical Security Infrastructure
  • Design and Consulting Services
  • Other Infrastructure

Latin America Data Center Construction Market By Vertical

• • IT & Telecom
  • BFSI
  • Government & Defense
  • Healthcare
  • Energy
  • Others

Latin America Data Center Construction Market Leading players

• • Aceco TI
  • AECOM
  • Jacobs Engineering
  • Quark
  • Fluor Corporation
  • Zeittec