The Report Covers Latin America Data Center Construction Companies and the Market is Segmented by Infrastructure Type (Electrical Infrastructure, Mechanical Infrastructure, General Construction), Tier Type (Tier-I and -II, Tier-III, and Tier-IV), Size of Enterprise (Small and Medium-Scale Enterprises, Large-Scale Enterprises), End User (BFSI, IT and Telecommunications, Government and Defense, Healthcare), and Country. The Market Sizes and Forecasts are Provided in Terms of Value (USD Million) for all the Above Segments.

The Latin America data center market size will witness investments of USD 14.30 billion by 2030, growing at a CAGR of 12.21% during the forecast period.

The South America Data Center Market report segments the industry into Data Center Size (Large, Massive, Medium, Mega, Small), Tier Type (Tier 1 and 2, Tier 3, Tier 4), Absorption (Non-Utilized, Utilized), and Country (Brazil, Chile, Rest of South America). Get five years of historical data alongside five-year market forecasts.

In 2023, the Latin America Data Center Market value is projected to surge to $ 6.42 billion by 2030 at a CAGR of 10.1% from 2024 to 2030

The Latin America data center market is expected to grow at a CAGR of 8.14% and is expected to reach USD 8.81 billion by 2028 from USD 5.51 billion in 2022.

The Latin America Data Center Cooling Market Report is Segmented Into Technology (Air-Based Cooling [Chillers and Economizers, CRAH, Cooling Towers, and Other Air-Based Cooling Technologies] and Liquid-Based Cooling (Immersion Cooling, Direct-To-Chip Cooling, and Rear-Door Heat Exchanger]), Type of Data Center (Hyperscaler, Enterprise, and Colocation), and End-User Industry (IT and Telecom, Retail and Consumer Goods, Healthcare, Media and Entertainment, Federal and Institutional Agencies, and Other End-User Industries). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

The Latin America data center colocation market by investment was valued at USD 1.12 billion in 2023 and is expected to reach USD 1.81 billion by 2029, growing at a CAGR of 8.33% during the forecast period.

The Latin American data center construction market is experiencing robust growth, projected to reach a market size of $5.14 billion in 2025, with a Compound Annual Growth Rate (CAGR) exceeding 8.71% from 2025 to 2033. This expansion is fueled by several key drivers. Firstly, the increasing adoption of cloud computing and digital transformation initiatives across various sectors, including Banking, Financial Services, and Insurance (BFSI), IT and Telecommunications, and Government and Defense, is significantly boosting demand for data center infrastructure. Secondly, the burgeoning e-commerce sector and the rise of big data analytics are further fueling this market growth. The market is segmented by infrastructure type (electrical and mechanical), tier level (Tier I-IV), enterprise size (small, medium, and large), and end-user industry. Brazil, Mexico, and Argentina constitute the largest markets within the region, reflecting their advanced economies and robust digital infrastructure development. While the construction of large-scale data centers by companies like Ascenty, Equinix, and others dominates the market, the participation of smaller enterprises and general construction firms is also contributing to overall growth. However, market expansion is not without challenges. Potential restraints include the relatively high cost of construction and land acquisition in prime locations, particularly in major metropolitan areas. Furthermore, regulatory hurdles and the need for robust power infrastructure in some regions can impede project timelines and overall development. Despite these challenges, the long-term outlook for the Latin American data center construction market remains positive, driven by continuous investments in digital infrastructure and the region’s growing digital economy. The expanding adoption of hyperscale data centers and edge computing further contributes to the market's sustained upward trajectory. The presence of established international players alongside local construction firms indicates a healthy and competitive market landscape. Recent developments include: 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., December 2022: Aligned, which is financed by Macquarie Group, intends to acquire Odata. The parties are in "advanced discussions" about a deal that would value Odata at roughly $1.8 billion, including debt, and may be revealed as soon as next week. The company announced at the opening of its first Mexican facility earlier this year that it would soon start building a second 30MW data center in Querétaro, and Peru would be its next market.. Key drivers for this market are: 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. Potential restraints include: Integration issues with traditional systems, Data quality and accuracy issues. Notable trends are: IT and Telecommunications Segment to Hold a Significant Share of the Market.

The South America Data Center Construction Market report segments the industry into By Infrastructure (By Electrical Infrastructure, and more.), By Electrical Infrastructure (Power Distribution Solution, and more.), By Mechanical Infrastructure (Cooling Systems, and more.), By Tier Type (Tier-I and II, and more.), By End User (Banking, Financial Services, and Insurance, and more.), and By Geography.

The South American Data Center Physical Security Market Report is Segmented by Solution Type (Video Surveillance and Access Control Solutions), Service Type (Consulting Services and Professional Services), End User (IT & Telecommunication, BFSI, Government, Healthcare, and Other End Users), and Country. The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

The South America Data Center Networking Market report segments the industry into By Component (By Product, By Services), End-User (IT & Telecommunication, BFSI, Government, Media & Entertainment, Other End-Users), and Country (Brazil, Chile, Rest of South America). Get five years of historical data and five-year forecasts.

The South America Data Center Server Market is Segmented by Form Factor (Blade Server, Rack Server, and Tower Server), by End User (IT and Telecommunication, BFSI, Government, Media and Entertainment, and Other End Users), and by Geography (Brazil, Chile, and Rest of South America). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

The Latin America green data center market was valued at USD 891 million in 2022 and is expected to reach USD 1.65 billion by 2028, growing at a CAGR of 10.79% from 2022 to 2028.

The Latin America Hyper-scale Data Center market will be USD 7077.1 million in 2024 and is estimated to grow at a compound annual growth rate (CAGR) of 5.6% from 2024 to 2031. The market is foreseen to reach USD 11429.7 million by 2031 owing to Investments in high-speed internet and telecommunications networks.

The South America Data Center Rack Market is Segmented by Rack Size (Quarter Rack, Half Rack and Full Rack), End-User Industry (BFSI, IT and Telecom, Government, Media and Entertainment), and Country. The Market Sizes and Forecasts are Provided in Terms of Volume (units) for all the Above Segments.

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Data Center Power Market Size 2025-2029

The data center power market size is forecast to increase by USD 24.05 billion, at a CAGR of 10.8% between 2024 and 2029.

The market is experiencing significant growth due to increasing investments in data centers and high-performance computing (HPC) systems. This trend is driven by the rising demand for digital transformation and the increasing adoption of cloud services. However, the market also faces challenges such as UPS battery failure and the need for energy efficiency.
To address these challenges, market participants are focusing on advanced technologies like lithium-ion batteries and renewable energy sources. Moreover, the implementation of energy-efficient practices and the use of smart grids are expected to mitigate the energy consumption issues in data centers. Overall, the market is poised for steady growth, driven by these trends and the increasing demand for reliable and efficient power solutions.

What will be the Size of the Data Center Power Market During the Forecast Period?

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The market is experiencing significant growth as advanced systems, such as modular data centers, gain popularity. These systems offer flexibility and scalability, making them an attractive option for businesses adapting to work-from-home models. Power Distribution Units (PDUs) and Uninterruptible Power Supply Systems (UPS) are essential components of data centers, ensuring reliable power delivery and protection against power outages. Battery monitoring equipment and PUE monitoring devices are also crucial in optimizing energy conservation and improving overall efficiency. Intelligent power strips and battery monitoring devices are advanced technologies that enhance power management, providing real-time data and analytics for medium-sized enterprises, web hosting cloud providers, colocation data centers, and even mega data centers.
Cloud computing and computational power have led to an increase in demand for advanced power management solutions. Compatible devices, such as PDUs, UPS, busways, and other power technologies, are essential to support sectors such as IT & telecommunications, government, healthcare, retail, banking, financial services, and insurance. Initial investment in power infrastructure can be substantial, but the long-term benefits, including energy savings and improved reliability, make it a worthwhile investment. The integration of these power management technologies in data centers contributes to the overall market dynamics, enabling businesses to meet their growing power needs while maintaining energy efficiency and reducing their carbon footprint.

How is the Data Center Power Market Segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Product

  Generators
  Transformers
  UPS
  Transfer switches and switchgears
  Others


End-user

  IT and telecom
  BFSI
  Energy
  Healthcare
  Retail


Services

  Design & Consulting
  Integration & Deployment
  Support & Maintenance


Geography

  North America

    Canada
    US


  Europe

    Germany
    UK
    France


  APAC

    China
    India
    Japan
    South Korea


  South America



  Middle East and Africa

By Product Insights

The generators segment is estimated to witness significant growth during the forecast period.

Data centers rely on generators as backup power sources during power outages. The selection of a generator depends on the required backup time and power capacity. Enterprises should consider the power system architecture of their data centers before installing a generator. Generators are classified into gas, diesel, and bi-fuel types based on fuel source. Choosing a generator based on the fuel option can help reduce operating costs. Energy conservation technologies, such as PUE monitoring devices, intelligent power strips, and battery monitoring devices, are essential in data centers to optimize energy usage and reduce the overall power consumption. Cloud computing and computational power have led to increased energy demand in data centers, making energy efficiency a priority for medium-sized enterprises.

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The generators segment was valued at USD 6.89 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 29% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The global micro data center market size exceeded USD 6.89 billion in 2024 and is set to expand at a CAGR of more than 28.8%, surpassing USD 184.98 billion revenue by 2037. Solutions segment is poised to hold 45% share by 2037, due to swiftly expanding IT infrastructure in high-potential regions such as Asia Pacific, Latin America, and Middle East & Africa.

The Modular Data Center Market report segments the industry into Solution and Services (Function Module Solution (Individual Function Module and All-in-One Function Module), Services), Application (Disaster Backup, High Performance/ Edge Computing, Data Center Expansion, Starter Data Centers), End User (IT, Telecom, BFSI, Government, and more), and Geography.

The green data center market in Latin America is set to surpass nine billion U.S. dollars in value by 2030, up from an expected 3.58 billion U.S. dollars in 2023. Brazil is set to remain the largest market, followed by Argentina.

Further information on the green data center market can be found here.

The Mega Data Center Market report segments the industry into By Solution (Storage, Networking, Server, Security, Other Solutions), By End-User (BFSI, Telecom and IT, Government, Media and Entertainment, Other End-Users), and Geography (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa). Get five years of historical data and five-year forecasts.