Key Insights
The Latin American data center construction market is experiencing robust growth, projected to reach \$5.14 billion in 2025 and maintain a Compound Annual Growth Rate (CAGR) exceeding 8.71% from 2025 to 2033. This expansion is fueled by several key factors. Firstly, the burgeoning digital economy across Brazil, Mexico, Argentina, and other Latin American nations is driving increased demand for robust data storage and processing capabilities. The rising adoption of cloud computing, big data analytics, and e-commerce further fuels this demand, necessitating the construction of new, larger, and more advanced data centers. Secondly, significant investments from both domestic and international companies in the IT and telecommunications sectors are contributing to market expansion. Government initiatives promoting digital transformation and infrastructure development across the region also play a significant role. Finally, the increasing adoption of colocation services and hyperscale data center deployments further accelerate market growth. The market is segmented by infrastructure type (electrical and mechanical), tier level (I-IV), enterprise size (SME and large-scale), end-user (banking, IT, government, healthcare), and country (Brazil, Mexico, Argentina, and Rest of Latin America). Brazil and Mexico are currently the largest markets, driven by their advanced economies and substantial IT infrastructure investments.
However, certain challenges exist. While the market demonstrates significant potential, regulatory hurdles and infrastructure limitations in some regions could impede growth. Furthermore, the cost of land and construction in certain areas may present obstacles for developers. Nonetheless, the strong long-term growth outlook is reinforced by ongoing digital transformation initiatives across the region, making this market an attractive prospect for both established and emerging players in the data center construction industry. The presence of key players like Ascenty, Constructora Sudamericana, and others signifies the market's maturity and ongoing development. Future growth will likely be driven by the expansion of 5G networks and the increasing adoption of AI and IoT technologies.
Latin America Data Center Construction Market: A Comprehensive Report (2019-2033)
This in-depth report provides a comprehensive analysis of the Latin America data center construction market, offering invaluable insights for stakeholders across the value chain. Covering the period from 2019 to 2033, with a focus on 2025, this report meticulously examines market dynamics, key players, growth drivers, and challenges shaping this rapidly evolving sector. The report forecasts significant expansion, driven by increasing digitalization and cloud adoption across Mexico, Brazil, Argentina, and the rest of Latin America. The total market value is projected to reach xx Million by 2033.
Latin America Data Center Construction Market Structure & Competitive Dynamics
The Latin American data center construction market exhibits a moderately concentrated landscape, with a mix of multinational giants and regional players vying for market share. Key players such as Ascenty Data Centers E Telecomunicacoes, Constructora Sudamericana S A, Fortis Construction, and Equnix Inc. compete alongside numerous other regional contractors and specialized firms. Market concentration is further influenced by the prevalence of large-scale projects undertaken by hyperscalers and major IT firms. The report analyzes market share distribution amongst key players.
- Market Concentration: xx% of the market is controlled by the top 5 players in 2025.
- Innovation Ecosystems: The market benefits from an evolving innovation ecosystem driven by technological advancements in data center infrastructure, including cooling solutions, power management, and security systems.
- Regulatory Frameworks: Varying regulatory environments across Latin American countries impact construction timelines and costs. The report details regulatory nuances across key markets.
- Product Substitutes: Limited direct substitutes exist; however, the market faces indirect competition from cloud service providers offering alternative infrastructure solutions.
- End-User Trends: The increasing adoption of cloud computing, big data analytics, and digital transformation initiatives across diverse sectors fuels demand for data center construction.
- M&A Activities: Recent significant M&A activity, such as Aligned’s proposed acquisition of Odata (December 2022, $1.8 Billion), highlights the consolidation trend within the market. The report details further M&A activities with associated values.
Latin America Data Center Construction Market Industry Trends & Insights
The Latin America data center construction market is poised for robust growth, projected to achieve a Compound Annual Growth Rate (CAGR) of xx% during the forecast period (2025-2033). This growth is fueled by several key factors. The expanding digital economy across Latin America drives increased demand for data center capacity, particularly in high-growth markets like Mexico and Brazil. Technological disruptions, such as the increasing adoption of edge computing and AI-powered solutions, further stimulate demand. Consumer preferences for seamless digital experiences and the growing adoption of cloud services significantly contribute to market expansion. Competitive dynamics, including ongoing consolidation through mergers and acquisitions, shape the market landscape. Market penetration for Tier III and Tier IV data centers is anticipated to grow significantly, surpassing xx% by 2033.
Dominant Markets & Segments in Latin America Data Center Construction Market
Brazil and Mexico represent the dominant markets within Latin America, accounting for xx% and xx% of the total market size in 2025, respectively. This dominance stems from several key factors:
- Brazil: Large population, robust IT sector, and expanding digital economy.
- Mexico: Growing FDI in the IT sector, favorable government policies, and strategic location for regional connectivity.
Key Segment Dominance:
- Infrastructure Type: Mechanical infrastructure currently commands the largest share, driven by the need for advanced cooling and power systems in high-density data centers.
- Tier Type: Tier III and Tier IV data centers witness the highest growth, reflecting the demand for high-availability and resilience infrastructure among large-scale enterprises.
- Size of Enterprise: Large-scale enterprises are the main drivers of market growth, undertaking significant investment in data center capacity.
- End User: The IT and telecommunications sector leads the demand for data center construction, followed closely by Banking, Financial Services, and Insurance (BFSI).
Latin America Data Center Construction Market Product Innovations
Recent innovations focus on enhancing data center efficiency, sustainability, and security. This includes advancements in modular data center designs, liquid cooling technologies, and AI-driven infrastructure management systems. These innovations aim to address growing concerns about energy consumption, environmental impact, and operational costs, thus improving the overall market fit.
Report Segmentation & Scope
This report segments the Latin American data center construction market across several dimensions:
By Infrastructure Type: Electrical Infrastructure, Other Electrical Infrastructure, Mechanical Infrastructure, Other Mechanical Infrastructure, General Construction. Each segment’s growth trajectory and market size are analyzed.
By Tier Type: Tier-I and II, Tier-III, Tier-IV. Growth projections and competitive dynamics are detailed for each tier.
By Size of Enterprise: Small and Medium-scale Enterprise, Large-Scale Enterprise. Market size and growth projections are provided for each enterprise size.
By End User: Banking, Financial Services, and Insurance, IT and Telecommunications, Government and Defense, Healthcare, Other End Users. Market share and growth trends are analyzed for each end-user sector.
By Country: Mexico, Brazil, Argentina, Rest of Latin America. Market size and growth projections are provided for each country.
Key Drivers of Latin America Data Center Construction Market Growth
Several key factors drive market growth:
- Increasing Digitalization: The rapid expansion of the digital economy across Latin America fuels demand for data center capacity.
- Cloud Adoption: Widespread adoption of cloud services by businesses and consumers requires significant data center infrastructure.
- Government Initiatives: Government investments in digital infrastructure and supportive policies encourage data center development.
- Technological Advancements: Innovations in data center technologies enhance efficiency and reduce costs.
Challenges in the Latin America Data Center Construction Market Sector
The market faces several challenges:
- Regulatory Hurdles: Varying regulations and permitting processes across countries can delay project timelines.
- Supply Chain Issues: Global supply chain disruptions can impact material availability and project costs.
- Power Infrastructure Limitations: Inadequate power infrastructure in certain regions can constrain data center development.
- Competition: The influx of new players and increased competition can impact pricing.
Leading Players in the Latin America Data Center Construction Market Market
- Ascenty Data Centers E Telecomunicacoes
- Constructora Sudamericana S A
- Fortis Construction
- Equnix Inc
- Aceco TI
- Delta Group
- Turner Construction Co
- ZFB Group
- DPR Construction Inc
- HostDime Brasil
- AECOM Limited
- Legrand
- CyrusOne Inc
- RITTAL Sistemas Eletromecânicos Ltda (Rittal GmbH & Co KG)
Key Developments in Latin America Data Center Construction Market Sector
- January 2023: The Santos Port Authority (SPA) in Brazil contracts Zeittec for a new data center, highlighting investment in secure infrastructure.
- December 2022: Aligned's proposed acquisition of Odata for approximately $1.8 Billion underscores industry consolidation and expansion into new markets like Mexico and Peru.
Strategic Latin America Data Center Construction Market Outlook
The Latin America data center construction market presents significant growth opportunities. Continued investment in digital infrastructure, the expansion of cloud services, and the increasing adoption of advanced technologies will drive further market expansion. Strategic partnerships, technological innovation, and adept navigation of regulatory landscapes are crucial for success in this dynamic sector. The market is expected to witness sustained growth, driven by the region's expanding digital footprint and increasing demand for reliable, high-capacity data centers.
Latin America Data Center Construction Market Segmentation
-
1. Infrastructure Type
-
1.1. Electrical Infrastructure
- 1.1.1. UPS Systems
- 1.1.2. Others Electrical Infrastructure
-
1.2. Mechanical Infrastructure
- 1.2.1. Cooling Systems
- 1.2.2. Racks
- 1.2.3. Other Mechanical Infrastructure
- 1.3. General Construction
-
1.1. Electrical Infrastructure
-
2. Tier Type
- 2.1. Tier-I and II
- 2.2. Tier-III
- 2.3. Tier-IV
-
3. Size of Enterprise
- 3.1. Small and Medium-scale Enterprise
- 3.2. Large-Scale Enterprise
-
4. End User
- 4.1. Banking, Financial Services, and Insurance
- 4.2. IT and Telecommunications
- 4.3. Government and Defense
- 4.4. Healthcare
- 4.5. Other End Users
Latin America Data Center Construction Market Segmentation By Geography
-
1. Latin America
- 1.1. Brazil
- 1.2. Argentina
- 1.3. Chile
- 1.4. Colombia
- 1.5. Mexico
- 1.6. Peru
- 1.7. Venezuela
- 1.8. Ecuador
- 1.9. Bolivia
- 1.10. Paraguay
Latin America Data Center Construction Market REPORT HIGHLIGHTS
| Aspects | Details |
|---|---|
| Study Period | 2019-2033 |
| Base Year | 2024 |
| Estimated Year | 2025 |
| Forecast Period | 2025-2033 |
| Historical Period | 2019-2024 |
| Growth Rate | CAGR of > 8.71% from 2019-2033 |
| Segmentation |
|
Table of Contents
- 1. Introduction
- 1.1. Research Scope
- 1.2. Market Segmentation
- 1.3. Research Methodology
- 1.4. Definitions and Assumptions
- 2. Executive Summary
- 2.1. Introduction
- 3. Market Dynamics
- 3.1. Introduction
- 3.2. Market Drivers
- 3.2.1. Growth in Network Connectivity and Increased Adoption of Digital Transformation Related Technologies in the Region; Favorable tax Incentive Structure Introduced by Local Governments has Led to the Higher Participation from International Players; Ongoing Consolidation Efforts by Major Data Center Construction Companies to Aid their Expansion Activities; Growing Awareness on Modular Deployments and Increasing Rack Density
- 3.3. Market Restrains
- 3.3.1. Integration issues with traditional systems; Data quality and accuracy issues
- 3.4. Market Trends
- 3.4.1. IT and Telecommunications Segment to Hold a Significant Share of the Market
- 4. Market Factor Analysis
- 4.1. Porters Five Forces
- 4.2. Supply/Value Chain
- 4.3. PESTEL analysis
- 4.4. Market Entropy
- 4.5. Patent/Trademark Analysis
- 5. Latin America Data Center Construction Market Analysis, Insights and Forecast, 2019-2031
- 5.1. Market Analysis, Insights and Forecast - by Infrastructure Type
- 5.1.1. Electrical Infrastructure
- 5.1.1.1. UPS Systems
- 5.1.1.2. Others Electrical Infrastructure
- 5.1.2. Mechanical Infrastructure
- 5.1.2.1. Cooling Systems
- 5.1.2.2. Racks
- 5.1.2.3. Other Mechanical Infrastructure
- 5.1.3. General Construction
- 5.1.1. Electrical Infrastructure
- 5.2. Market Analysis, Insights and Forecast - by Tier Type
- 5.2.1. Tier-I and II
- 5.2.2. Tier-III
- 5.2.3. Tier-IV
- 5.3. Market Analysis, Insights and Forecast - by Size of Enterprise
- 5.3.1. Small and Medium-scale Enterprise
- 5.3.2. Large-Scale Enterprise
- 5.4. Market Analysis, Insights and Forecast - by End User
- 5.4.1. Banking, Financial Services, and Insurance
- 5.4.2. IT and Telecommunications
- 5.4.3. Government and Defense
- 5.4.4. Healthcare
- 5.4.5. Other End Users
- 5.5. Market Analysis, Insights and Forecast - by Region
- 5.5.1. Latin America
- 5.1. Market Analysis, Insights and Forecast - by Infrastructure Type
- 6. Brazil Latin America Data Center Construction Market Analysis, Insights and Forecast, 2019-2031
- 7. Argentina Latin America Data Center Construction Market Analysis, Insights and Forecast, 2019-2031
- 8. Mexico Latin America Data Center Construction Market Analysis, Insights and Forecast, 2019-2031
- 9. Peru Latin America Data Center Construction Market Analysis, Insights and Forecast, 2019-2031
- 10. Chile Latin America Data Center Construction Market Analysis, Insights and Forecast, 2019-2031
- 11. Rest of Latin America Latin America Data Center Construction Market Analysis, Insights and Forecast, 2019-2031
- 12. Competitive Analysis
- 12.1. Market Share Analysis 2024
- 12.2. Company Profiles
- 12.2.1 Ascenty Data Centers E Telecomunicacoes
- 12.2.1.1. Overview
- 12.2.1.2. Products
- 12.2.1.3. SWOT Analysis
- 12.2.1.4. Recent Developments
- 12.2.1.5. Financials (Based on Availability)
- 12.2.2 Constructora Sudamericana S A
- 12.2.2.1. Overview
- 12.2.2.2. Products
- 12.2.2.3. SWOT Analysis
- 12.2.2.4. Recent Developments
- 12.2.2.5. Financials (Based on Availability)
- 12.2.3 Fortis Construction
- 12.2.3.1. Overview
- 12.2.3.2. Products
- 12.2.3.3. SWOT Analysis
- 12.2.3.4. Recent Developments
- 12.2.3.5. Financials (Based on Availability)
- 12.2.4 Equnix Inc *List Not Exhaustive
- 12.2.4.1. Overview
- 12.2.4.2. Products
- 12.2.4.3. SWOT Analysis
- 12.2.4.4. Recent Developments
- 12.2.4.5. Financials (Based on Availability)
- 12.2.5 Aceco TI
- 12.2.5.1. Overview
- 12.2.5.2. Products
- 12.2.5.3. SWOT Analysis
- 12.2.5.4. Recent Developments
- 12.2.5.5. Financials (Based on Availability)
- 12.2.6 Delta Group
- 12.2.6.1. Overview
- 12.2.6.2. Products
- 12.2.6.3. SWOT Analysis
- 12.2.6.4. Recent Developments
- 12.2.6.5. Financials (Based on Availability)
- 12.2.7 Turner Construction Co
- 12.2.7.1. Overview
- 12.2.7.2. Products
- 12.2.7.3. SWOT Analysis
- 12.2.7.4. Recent Developments
- 12.2.7.5. Financials (Based on Availability)
- 12.2.8 ZFB Group
- 12.2.8.1. Overview
- 12.2.8.2. Products
- 12.2.8.3. SWOT Analysis
- 12.2.8.4. Recent Developments
- 12.2.8.5. Financials (Based on Availability)
- 12.2.9 DPR Construction Inc
- 12.2.9.1. Overview
- 12.2.9.2. Products
- 12.2.9.3. SWOT Analysis
- 12.2.9.4. Recent Developments
- 12.2.9.5. Financials (Based on Availability)
- 12.2.10 HostDime Brasil
- 12.2.10.1. Overview
- 12.2.10.2. Products
- 12.2.10.3. SWOT Analysis
- 12.2.10.4. Recent Developments
- 12.2.10.5. Financials (Based on Availability)
- 12.2.11 AECOM Limited
- 12.2.11.1. Overview
- 12.2.11.2. Products
- 12.2.11.3. SWOT Analysis
- 12.2.11.4. Recent Developments
- 12.2.11.5. Financials (Based on Availability)
- 12.2.12 Legrand
- 12.2.12.1. Overview
- 12.2.12.2. Products
- 12.2.12.3. SWOT Analysis
- 12.2.12.4. Recent Developments
- 12.2.12.5. Financials (Based on Availability)
- 12.2.13 CyrusOne Inc
- 12.2.13.1. Overview
- 12.2.13.2. Products
- 12.2.13.3. SWOT Analysis
- 12.2.13.4. Recent Developments
- 12.2.13.5. Financials (Based on Availability)
- 12.2.14 RITTAL Sistemas Eletromecânicos Ltda (Rittal GmbH & Co KG)
- 12.2.14.1. Overview
- 12.2.14.2. Products
- 12.2.14.3. SWOT Analysis
- 12.2.14.4. Recent Developments
- 12.2.14.5. Financials (Based on Availability)
- 12.2.1 Ascenty Data Centers E Telecomunicacoes
List of Figures
- Figure 1: Latin America Data Center Construction Market Revenue Breakdown (Million, %) by Product 2024 & 2032
- Figure 2: Latin America Data Center Construction Market Share (%) by Company 2024
List of Tables
- Table 1: Latin America Data Center Construction Market Revenue Million Forecast, by Region 2019 & 2032
- Table 2: Latin America Data Center Construction Market Revenue Million Forecast, by Infrastructure Type 2019 & 2032
- Table 3: Latin America Data Center Construction Market Revenue Million Forecast, by Tier Type 2019 & 2032
- Table 4: Latin America Data Center Construction Market Revenue Million Forecast, by Size of Enterprise 2019 & 2032
- Table 5: Latin America Data Center Construction Market Revenue Million Forecast, by End User 2019 & 2032
- Table 6: Latin America Data Center Construction Market Revenue Million Forecast, by Region 2019 & 2032
- Table 7: Latin America Data Center Construction Market Revenue Million Forecast, by Country 2019 & 2032
- Table 8: Brazil Latin America Data Center Construction Market Revenue (Million) Forecast, by Application 2019 & 2032
- Table 9: Argentina Latin America Data Center Construction Market Revenue (Million) Forecast, by Application 2019 & 2032
- Table 10: Mexico Latin America Data Center Construction Market Revenue (Million) Forecast, by Application 2019 & 2032
- Table 11: Peru Latin America Data Center Construction Market Revenue (Million) Forecast, by Application 2019 & 2032
- Table 12: Chile Latin America Data Center Construction Market Revenue (Million) Forecast, by Application 2019 & 2032
- Table 13: Rest of Latin America Latin America Data Center Construction Market Revenue (Million) Forecast, by Application 2019 & 2032
- Table 14: Latin America Data Center Construction Market Revenue Million Forecast, by Infrastructure Type 2019 & 2032
- Table 15: Latin America Data Center Construction Market Revenue Million Forecast, by Tier Type 2019 & 2032
- Table 16: Latin America Data Center Construction Market Revenue Million Forecast, by Size of Enterprise 2019 & 2032
- Table 17: Latin America Data Center Construction Market Revenue Million Forecast, by End User 2019 & 2032
- Table 18: Latin America Data Center Construction Market Revenue Million Forecast, by Country 2019 & 2032
- Table 19: Brazil Latin America Data Center Construction Market Revenue (Million) Forecast, by Application 2019 & 2032
- Table 20: Argentina Latin America Data Center Construction Market Revenue (Million) Forecast, by Application 2019 & 2032
- Table 21: Chile Latin America Data Center Construction Market Revenue (Million) Forecast, by Application 2019 & 2032
- Table 22: Colombia Latin America Data Center Construction Market Revenue (Million) Forecast, by Application 2019 & 2032
- Table 23: Mexico Latin America Data Center Construction Market Revenue (Million) Forecast, by Application 2019 & 2032
- Table 24: Peru Latin America Data Center Construction Market Revenue (Million) Forecast, by Application 2019 & 2032
- Table 25: Venezuela Latin America Data Center Construction Market Revenue (Million) Forecast, by Application 2019 & 2032
- Table 26: Ecuador Latin America Data Center Construction Market Revenue (Million) Forecast, by Application 2019 & 2032
- Table 27: Bolivia Latin America Data Center Construction Market Revenue (Million) Forecast, by Application 2019 & 2032
- Table 28: Paraguay Latin America Data Center Construction Market Revenue (Million) Forecast, by Application 2019 & 2032
Frequently Asked Questions
1. What is the projected Compound Annual Growth Rate (CAGR) of the Latin America Data Center Construction Market?
The projected CAGR is approximately > 8.71%.
2. Which companies are prominent players in the Latin America Data Center Construction Market?
Key companies in the market include Ascenty Data Centers E Telecomunicacoes, Constructora Sudamericana S A, Fortis Construction, Equnix Inc *List Not Exhaustive, Aceco TI, Delta Group, Turner Construction Co, ZFB Group, DPR Construction Inc, HostDime Brasil, AECOM Limited, Legrand, CyrusOne Inc, RITTAL Sistemas Eletromecânicos Ltda (Rittal GmbH & Co KG).
3. What are the main segments of the Latin America Data Center Construction Market?
The market segments include Infrastructure Type, Tier Type, Size of Enterprise, End User.
4. Can you provide details about the market size?
The market size is estimated to be USD 5.14 Million as of 2022.
5. What are some drivers contributing to market growth?
Growth in Network Connectivity and Increased Adoption of Digital Transformation Related Technologies in the Region; Favorable tax Incentive Structure Introduced by Local Governments has Led to the Higher Participation from International Players; Ongoing Consolidation Efforts by Major Data Center Construction Companies to Aid their Expansion Activities; Growing Awareness on Modular Deployments and Increasing Rack Density.
6. What are the notable trends driving market growth?
IT and Telecommunications Segment to Hold a Significant Share of the Market.
7. Are there any restraints impacting market growth?
Integration issues with traditional systems; Data quality and accuracy issues.
8. Can you provide examples of recent developments in the market?
January 2023: The Santos Port Authority (SPA) is planning to have a new data center constructed by the Brazilian company Zeittec. Zeittec and the SPA, the state-owned organization in charge of running the Port of Santos in the state of So Paulo, have agreed to the terms of a building agreement for a new data center. It is anticipated that work on the Safe Room will begin in January and be finished in the middle of 2023. According to the firm, the SPA Safe Room will be safe from both break-ins and fires thanks to walls that have been certified by NBR 10.636 as being able to resist fire for up to 120 minutes (CF 120). It will have OM4 laser multimode optical fibers and CAT 6A structured cabling.
9. What pricing options are available for accessing the report?
Pricing options include single-user, multi-user, and enterprise licenses priced at USD 4750, USD 4950, and USD 6800 respectively.
10. Is the market size provided in terms of value or volume?
The market size is provided in terms of value, measured in Million.
11. Are there any specific market keywords associated with the report?
Yes, the market keyword associated with the report is "Latin America Data Center Construction Market," which aids in identifying and referencing the specific market segment covered.
12. How do I determine which pricing option suits my needs best?
The pricing options vary based on user requirements and access needs. Individual users may opt for single-user licenses, while businesses requiring broader access may choose multi-user or enterprise licenses for cost-effective access to the report.
13. Are there any additional resources or data provided in the Latin America Data Center Construction Market report?
While the report offers comprehensive insights, it's advisable to review the specific contents or supplementary materials provided to ascertain if additional resources or data are available.
14. How can I stay updated on further developments or reports in the Latin America Data Center Construction Market?
To stay informed about further developments, trends, and reports in the Latin America Data Center Construction Market, consider subscribing to industry newsletters, following relevant companies and organizations, or regularly checking reputable industry news sources and publications.
Methodology
Step 1 - Identification of Relevant Samples Size from Population Database
Step 2 - Approaches for Defining Global Market Size (Value, Volume* & Price*)
Note*: In applicable scenarios
Step 3 - Data Sources
Primary Research
- Web Analytics
- Survey Reports
- Research Institute
- Latest Research Reports
- Opinion Leaders
Secondary Research
- Annual Reports
- White Paper
- Latest Press Release
- Industry Association
- Paid Database
- Investor Presentations
Step 4 - Data Triangulation
Involves using different sources of information in order to increase the validity of a study
These sources are likely to be stakeholders in a program - participants, other researchers, program staff, other community members, and so on.
Then we put all data in single framework & apply various statistical tools to find out the dynamic on the market.
During the analysis stage, feedback from the stakeholder groups would be compared to determine areas of agreement as well as areas of divergence
