The United States is experiencing a surge in data center construction, with the power supply under construction reaching *** gigawatts in 2024. This marks a *** percent increase from previous years, reflecting the growing demand for data storage and processing capabilities across the country. The rapid expansion of data centers underscores their crucial role in supporting the digital infrastructure that powers businesses and consumers alike. Northern Virginia leads the charge Northern Virginia has emerged as the epicenter of data center growth in the United States. In 2023, the region boasted the highest existing data center power capacity, solidifying its position as the market with the largest data center inventory in the country. Furthermore, Northern Virginia continues to dominate new construction efforts, with data centers under construction in the second half of 2024 set to add a staggering *** gigawatts of power capacity. This far outpaces other major markets such as Dallas, Austin, and NYC-NJ combined. Cloud infrastructure fuels growth The expansion of data centers is closely tied to the increasing adoption of cloud infrastructure services. Enterprise spending on cloud infrastructure services has soared in the past decade, fueled by organizations' growing demand for modern networking, storage, and database solutions. As companies continue to migrate their operations to the cloud, the need for robust data center facilities is expected to rise, further propelling the construction boom.

As of March 2025, there were a reported 5,426 data centers in the United States, the most of any country worldwide. A further 529 were located in Germany, while 523 were located in the United Kingdom. What is a data center? A data center is a network of computing and storage resources that enables the delivery of shared software applications and data. These facilities can house large amounts of critical and important data, and therefore are vital to the daily functions of companies and consumers alike. As a result, whether it is a cloud, colocation, or managed service, data center real estate will have increasing importance worldwide. Hyperscale data centers In the past, data centers were highly controlled physical infrastructures, but the cloud has since changed that model. A cloud data service is a remote version of a data center – located somewhere away from a company's physical premises. Cloud IT infrastructure spending has grown and is forecast to rise further in the coming years. The evolution of technology, along with the rapid growth in demand for data across the globe, is largely driven by the leading hyperscale data center providers.

Introduction

According to Market.us, The global data center construction market is expected to reach USD 453.5 Billion by 2033, representing a substantial Compound Annual Growth Rate (CAGR) of 6.7%. This growth trajectory reflects a significant increase from the valuation of USD 237.1 Billion in 2023.

The construction of data centers has become a pivotal aspect of modern infrastructure, catering to the exponentially growing demand for data processing and storage, driven by the surge in cloud computing, big data analytics, and the proliferation of digital services. The data center construction market is witnessing robust growth, characterized by the development of facilities that are not only scalable and efficient but also adhere to stringent standards of reliability and security. This expansion is propelled by the increasing reliance of businesses and governments on digital platforms, necessitating the availability of robust data handling capabilities.

From an analytical standpoint, several factors are driving the growth of the data center construction market. Firstly, the digital transformation initiatives across various sectors are augmenting the need for data centers, as organizations seek to harness the power of data for competitive advantage. Secondly, the advent of technologies such as 5G, Internet of Things (IoT), and artificial intelligence (AI) is further amplifying the demand for data processing power, thus fueling the construction of new data centers. Additionally, the emphasis on data sovereignty and the need for local data processing in compliance with regulatory requirements are prompting companies to invest in regional data centers, contributing to the market's expansion.

Opportunities within the data center construction market are vast and varied. There is a growing interest in green data centers, driven by the global push towards sustainability. This shift offers substantial opportunities for innovations in energy-efficient design, renewable energy integration, and advanced cooling systems, presenting a significant area for development and investment. Furthermore, the increasing complexity of data center architecture, coupled with the demand for high levels of security and reliability, opens avenues for advancements in construction methodologies, materials, and technologies. The adoption of modular and prefabricated data centers is another area of opportunity, offering flexibility and scalability while reducing construction time and costs.

South America Data Center Construction Market is Segmented by Tier Type (Tier 1 and 2, Tier 3 and Tier 4), Data Center Type(Colocation, Self-Built Hyperscalers (CSPs), Enterprise, and Edge), and Infrastructure (Electrical Infrastructure, Mechanical Infrastructure). The Market Forecasts are Provided in Terms of Value (USD).

The US data center construction market is expected to grow from USD 48.18 billion in 2024 to USD 112.33 billion by 2030, at a CAGR of 15.15% from 2024 to 2030.

The size of the New Jersey Data Center market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 4.90% during the forecast period.The New Jersey data center market plays a major role in the global data center landscape. Data centers are special-purpose facilities designed to house and protect computer systems, as well as associated components like telecommunications and storage systems. The facilities provide high availability and reliability for critical IT infrastructure. Data centers are very important for businesses and organizations of any size, as they provide the capacity to store, process, and manage massive amounts of data efficiently and in a secure manner. They support many applications, including cloud computing, e-commerce, financial transactions, and research work, among many others. Recent developments include: August 2022: NovoServe, based in the Netherlands, will open its first data center in the United States. NovoServe will open the first phase of its New Jersey data center. The bare-metal hosting specialist's US expansion will enable its network customers to serve the US and Canadian East Coast with sub-20ms latency., April 2023: Continent 8 Technologies officially opens the third stage of its Atlantic City data center development. Continent 8, the premier provider of managed hosting, connectivity, and security solutions to the global gambling sector, has increased capacity by 30% in its Atlantic City data center. The Casino Reinvestment Development Authority (CRDA) approved the stage three extension, which included constructing a 5,330 sq ft Modular Data Centre (MDC) on the site.. Key drivers for this market are: Growing Adoption of Cloud Services is expected to flourish the market, Increasing Growth in Wholesale Datacenter Multi-tenant Spaces to propel demand (albeit from a lower base); Increased Emphasis on Compliance with Data Regulations and Cost-Effective Nature of Multi-tenant Facilities to Drive Adoption among SME's. Potential restraints include: Dependence on Regulatory Landscape & Stringent Security Requirements. Notable trends are: Cloud Computing in BFSI is anticipated to hold a significant share.

The size of the South America Data Center market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 6.00% during the forecast period.Data centre is a location with computer systems and networking equipment, which is designed to store, process, and transmit data. It offers an infrastructure that organizations need for the management of their information-technology operations-including hosting websites, email servers, and database servers. Data centers are vital not only for small businesses and medium-sized companies but also for large enterprises since they enable digital transformation and carry critical business applications for all of them.Cloud service demand, deployment of digital technologies, and the bare need to have proper IT infrastructure in the south American region of businesses has pushed the growth of the market for data centers. It becomes increasingly on-demand as there grows a whole need for adopting regional cloud computing and other associated digital technologies. In addition, due to regulatory activities such as data localization laws, the compliance requirements are bringing an urgent need for data centers being localized within the region.The South American data center market represents an established mix of major and emerging providers. Global leaders of the data center market invest their presence in the region and emerging providers capitalize on the high-growing demand. Investments in the data center go into artificial intelligence and machine learning to make it efficient, secure, and fast. The better the digital transformation is, the more South America will be embracing it, and that's where growth and innovation in the data center market will begin. Recent developments include: November 2022: Ascenty will invest R$1.5 billion (US$290 million) in the construction of five new data centers in South America. The locations of the data centers will be Brazil, Chile, and Colombia.October 2022: In So Paulo, Brazil, Equinix opened a brand-new hyperscale data center. The new SP5x facility, which is situated in Santana de Parnaba close to the organization's SP3 IBX data center, has a capacity of roughly 5MW in its initial phase. After all, phases are finished, the data center should have a total capacity of 14.4MW. According to the business, it plans to spend a total of $116.4 million on the facility.August 2022: In Brazil's So Paulo, Scala Data Centers has opened a new data center. At the business' Tamboré campus in So Paulo's Barueri neighborhood, SP4 is now operational. With 6MW of IT power capacity in use, the site is operational in its initial stage. The second stage of SP4 is anticipated to begin operations in September, adding 6MW of IT capacity.. Key drivers for this market are: , High Mobile penetration, Low Tariff, and Mature Regulatory Authority; Successful Privatization and Liberalization Initiatives. Potential restraints include: , Difficulties in Customization According to Business Needs. Notable trends are: OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.

The size of the US Multi-Tenant (Colocation) Data Center market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 10.89% during the forecast period.The US multi-tenant data center market in colocation is growing rapidly, and it will reach a notable valuation in the coming years. It is when third-party service providers offer a business the option to rent space, network bandwidth, and other essential data center resources within a shared facility. In this model, several advantages come into play: cost-effectiveness, enhanced scalability, and access to advanced infrastructure and security measures.Multi-tenant data centers are advantageous to businesses wanting to expand their IT operations but not willing to make the big capital investment for building and maintaining their own data centers. Multi-tenant data centers cater to various industries: SMEs to large corporations, as well as cloud service providers. The increasing requirement for cloud computing due to infrastructural changes, developing application needs for data storage and processing, and its demand to align businesses to the shifting digital landscape give momentum to the market. Recent developments include: In September 2023, A Full-Stack Cloud Service Provider, Expedient, partnered with Kyndryl, the world's largest IT infrastructure services provider. Through this collaboration, Expedient's robust data center colocation and cloud infrastructure will enhance Kyndryl's industry-leading cyber resilience offerings to customers. This partnership will enable Expedient and Kyndryl to extend the reach and effectiveness of security and cyber resilience services to a broader range of customers, helping organizations across various industries strengthen and fortify their cybersecurity posture while mitigating the risks associated with data breaches., In July 2023, Ubiquity, a digital infrastructure investor, announced the acquisition of edgepresence, a pioneer in the build-to-suit edge data center industry, delivering turnkey, localized, and scalable network compute solutions for carriers and data hyperscalers. Edgepresence's Edge Data Centers (EDCs) are modular, purpose-built data centers efficiently designed to include critical power, monitoring, physical security, and cooling. Complementing Ubiquity's existing digital infrastructure, EDCs enable far-edge functions, minimizing latency and improving performance for network tenants in a highly secure facility that can be deployed in weeks.. Key drivers for this market are: Growing Adoption of Cloud Services is expected to flourish the market, Increasing Growth in Wholesale Datacenter Multi-tenant Spaces to propel demand (albeit from a lower base); Increased Emphasis on Compliance with Data Regulations and Cost-Effective Nature of Multi-tenant Facilities to Drive Adoption among SME's. Potential restraints include: Dependence on Regulatory Landscape & Stringent Security Requirements. Notable trends are: Healthcare Sector Accounts for Significant Share.

The South America data center construction market exhibits robust growth potential, driven by increasing digitalization, cloud adoption, and the expansion of e-commerce across Brazil, Chile, and the rest of the region. With a current market size of $4.80 billion (2025) and a projected Compound Annual Growth Rate (CAGR) of 9.11% from 2025 to 2033, the market is poised for significant expansion. Key drivers include burgeoning demand for reliable IT infrastructure, government initiatives promoting digital transformation, and the rise of hyperscale data centers. The market is segmented by infrastructure (electrical and mechanical), tier type (I-IV), and end-user (banking, IT, government, etc.). The electrical infrastructure segment, encompassing power distribution solutions (PDUs, transfer switches, switchgear), and power backup solutions (UPS, generators), constitutes a substantial portion of the market, reflecting the critical need for uninterrupted power supply. Similarly, the mechanical infrastructure segment, encompassing cooling systems (immersion, direct-to-chip, etc.) and racks, is vital for maintaining optimal operating temperatures within data centers. The increasing adoption of advanced cooling technologies, such as immersion cooling, underscores the industry's focus on energy efficiency and sustainability. While specific regional breakdowns for Brazil, Chile, and the rest of South America are not provided, market expansion is expected to be geographically diverse, influenced by varying levels of economic development and digital infrastructure maturity within each region. The market's growth trajectory is projected to be influenced by factors such as governmental regulations, investment in renewable energy sources for data center operations, and the increasing adoption of edge computing. While challenges such as high initial investment costs and the need for skilled workforce might pose some restraints, the overall positive outlook for the South American economy and the ongoing expansion of digital services are expected to outweigh these obstacles. Major players like AECOM, Whiting-Turner, and Jacobs Solutions are actively involved in this growth, shaping the landscape through their project execution capabilities and technological expertise. The significant growth predicted for this market underscores the region's emergence as a key player in the global data center ecosystem. Recent developments include: July 2024: Odata, a subsidiary of Aligned Data Centers, commenced construction on its fifth data center in Brazil, DC SP04. This facility is strategically located in the Sao Paulo metropolitan area. Fonseca Mercadante Constructor has been selected as the construction partner for this project., April 2024: V.tal opened its second Edge data center in Barranquilla, Colombia. This new facility boasts a 3 MW capacity and can accommodate up to 200 racks. The company poured over USD 20 million into this venture. Notably, the new center stands adjacent to V.tal's established BDC1 facility, which provides 1 MW of power and room for 80 racks.. Key drivers for this market are: 4., Growing Cloud Applications, AI, and Big Data4.; Rising Adoption of Hyperscale Data Centers. Potential restraints include: 4., Growing Cloud Applications, AI, and Big Data4.; Rising Adoption of Hyperscale Data Centers. Notable trends are: Cloud Segment Expected to Grow Fastest During the Forecasted Period.

The South American data center market is experiencing robust growth, driven by increasing digitalization across various sectors and a burgeoning cloud computing adoption rate. The region's expanding e-commerce sector, coupled with the growing need for robust IT infrastructure among BFSI (Banking, Financial Services, and Insurance) and government entities, fuels significant demand. While the market faces challenges like infrastructural limitations in some areas and regulatory hurdles, the overall trajectory is positive. A substantial portion of the market is concentrated in Brazil, followed by Argentina and Chile, reflecting these countries' comparatively advanced digital economies and higher levels of foreign investment in data center infrastructure. The hyperscale segment is witnessing substantial growth, driven by large cloud providers establishing presence to serve the region's expanding user base. Furthermore, the shift towards colocation services is prominent, as organizations seek to avoid the capital expenditure associated with building and maintaining their own data centers. The trend towards higher tiers (Tier 3 and Tier 4) also signifies a focus on reliability and resilience, appealing to businesses with critical data requirements. This growth is expected to continue, with significant investments anticipated in expanding existing facilities and constructing new ones to meet the escalating demands. The forecast period, extending to 2033, anticipates sustained expansion, driven by continued technological advancements and the increasing digital transformation across South American economies. The competitive landscape comprises both global giants like Equinix and regional players like Ascenty and ODATA, highlighting a blend of established international expertise and local market knowledge. The presence of these diverse players fosters healthy competition, driving innovation and improving service offerings. However, the market also faces constraints like high energy costs in some regions and concerns regarding data sovereignty and cybersecurity, issues that require careful consideration by both providers and end-users. Successful players will need to navigate these challenges effectively while capitalizing on the region's potential, focusing on strategic partnerships, innovative solutions, and a strong understanding of the local regulatory environment. The market segmentation, encompassing various data center sizes, tier types, colocation models, and end-users, presents diverse opportunities for specialized providers to cater to niche requirements. Recent developments include: November 2022: Ascenty will invest R$1.5 billion (US$290 million) in the construction of five new data centers in South America. The locations of the data centers will be Brazil, Chile, and Colombia.October 2022: In So Paulo, Brazil, Equinix opened a brand-new hyperscale data center. The new SP5x facility, which is situated in Santana de Parnaba close to the organization's SP3 IBX data center, has a capacity of roughly 5MW in its initial phase. After all, phases are finished, the data center should have a total capacity of 14.4MW. According to the business, it plans to spend a total of $116.4 million on the facility.August 2022: In Brazil's So Paulo, Scala Data Centers has opened a new data center. At the business' Tamboré campus in So Paulo's Barueri neighborhood, SP4 is now operational. With 6MW of IT power capacity in use, the site is operational in its initial stage. The second stage of SP4 is anticipated to begin operations in September, adding 6MW of IT capacity.. Notable trends are: OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.

The size of the U.S. Data Center Market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of XXX % during the forecast period. The U.S. data center market is a rapidly growing sector driven by the increasing demand for digital storage, cloud computing, and big data processing. As more businesses and individuals rely on digital services, the need for robust data infrastructure has surged. U.S. data centers house vast amounts of data for industries such as finance, healthcare, e-commerce, and entertainment. Such data centers are equipped with advanced technologies, including high-speed internet connections, cooling systems, and security features to ensure efficient and secure operations. The industry is also influenced by the trend of edge computing, where smaller, decentralized data centers are built closer to end-users to reduce latency and improve performance. Other factors influencing the industry include the adoption of cloud services, data privacy regulations, and sustainability concerns. Companies like Amazon Web Services (AWS), Google, and Microsoft are major players in the market. They are all still building out their data center footprints to meet the ever-changing needs of the digital economy.

For the period between the first and third quarter of 2019, hyperscale operators accounted for ** percent of all spending on data center hardware and software, an increase from ** percent in first three quarters of 2018. Data center spending A data center is a network of computing and storage resources that enable the delivery of shared software applications and data. These centers can house large amounts of critical and important data, and therefore are vital to the daily functions of companies and consumers alike. As such, information technology (IT) spending on data center systems worldwide is estimated to amount to *** billion U.S. dollars in 2020. The evolution of technology, along with the rapid growth in demand for data across the globe, is largely driven by the leading hyperscale data center providers like Google, Microsoft, and Facebook. Hyperscale data centers A traditional data center will often support hundreds of physical servers; a hyperscale facility needs to support thousands of physical servers, as well as millions of virtual machines. To meet the demands across industry, firms are rapidly expanding and delivering new infrastructure options, with an expected 628 hyperscale data centers worldwide by 2021. Hyperscale computing is necessary for cloud and big data storage, as well as other applications demanded in the modern, digital world. The capital expenditure (CAPEX) of hyperscale operators equated to over *** billion U.S. dollars in 2019. Costs involved include servers, network equipment, power, and cooling. Environmental awareness With the increased demands now placed on hyperscale data centers also comes an increased demand for energy to support their activities, a trend that has risen dramatically over recent years. Whereas traditional data centers have reduced their demand for energy, hyperscale data centers have more than doubled their energy demands. As a result, hyperscale operators have explored alternative energy sources. An example of this includes Amazon Web Services who have built wind farms in order to supply their data center infrastructure with renewable energy.

The hyperscale data center industry is experiencing robust growth, projected to reach a market size of $101.23 billion in 2025 and maintain a Compound Annual Growth Rate (CAGR) of 5.29% from 2025 to 2033. This expansion is fueled by several key drivers. The exponential increase in data generated by cloud computing, the Internet of Things (IoT), and big data analytics necessitates massive data storage and processing capabilities, driving demand for hyperscale data centers. Furthermore, the increasing adoption of artificial intelligence (AI), machine learning (ML), and high-performance computing (HPC) applications further intensifies this demand. The shift towards digital transformation across various industries, coupled with the growing need for enhanced network connectivity and low latency, is also contributing significantly to market growth. Hyperscale colocation facilities are gaining traction, offering businesses a scalable and cost-effective alternative to self-build data centers. Competition among major players, including IBM, Hewlett Packard Enterprise, Alphabet, Cisco, Microsoft, Amazon Web Services, Huawei, Quanta Computer, Alibaba, Facebook, and Nvidia, is fierce, driving innovation and efficiency improvements within the sector. Geographical distribution reveals a strong presence in North America and Europe, driven by mature digital economies and robust IT infrastructure. However, the Asia-Pacific region is witnessing rapid growth, particularly in countries like India and China, fueled by increasing digitalization and government initiatives to support the development of digital infrastructure. Despite the positive growth trajectory, challenges remain. These include the high initial capital investment required for building and maintaining hyperscale data centers, the escalating energy consumption, and the growing concerns regarding data security and privacy. Addressing these challenges will be crucial for sustainable and responsible growth in the hyperscale data center market throughout the forecast period. The industry is likely to see further consolidation and strategic partnerships as companies seek to leverage economies of scale and expand their market reach. Recent developments include: November 2022 - Big Data Exchange (BDx), PT Indosat Tbk (Indosat Ooredoo Hutchison), and PT Aplikanusa Lintasarta announced their plan to build a 100MW data center complex on 12 acres of land. This new data center campus, CGK5, will be located in Karawang, West Java, east of Jakarta, and will be part of the company's third availability zone. The BDx Indonesia joint venture is a key component of the BDx platform, and the construction of CGK5 is BDx's 11th data center in the Asia-Pacific region. With more than USD 1 billion in committed investment funding, BDx's strong development trajectory across Asia allows scaled innovation in the most challenging markets., June 2022 - Equinix Inc., one of the leading global digital infrastructure companies, and PGIM Real Estate, the real estate investment and financing arm of PGIM, Prudential financial's global asset management business, announced the opening of the xScale data center in Sydney, named SY9x. This achievement followed the completion of the parties' USD 575 million joint venture., May 2022 - NTT Ltd in India announced the launch of its new hyperscale data center facility in Navi Mumbai, beginning with the NAV1A data center. This increases NTT's data center presence in the nation to 12 facilities, covering more than 2.5 million sq ft (232,258 m2) and 220 MW of facility power, solidifying its position as India's market leader in this segment., March 2022 - Yondr Group, one of the global leaders in developer, owner-operator, and service provider of data centers announced its expansion into the Malaysian market with a planned 200MW hyperscale campus to be developed on 72.8 acres of land acquired from TPM Technopark Sdn Bhd, a wholly owned subsidiary of Johor Corporation. Yondr's hyper-scale campus will be built in phases and have a total capacity of 200MW when completed, with the first phase anticipated to be completed in 2024. With at least 600MW of capacity, black fiber connectivity, and scalable utilities and infrastructure.. Key drivers for this market are: Growing Demand for Cloud Computing and Other High Performance Technologies. Potential restraints include: High Costs and Operational Concerns, Concerns related to Geoprivacy and Confidential Data. Notable trends are: Growing Demand for Cloud Computing and Other Hight Performance Technologies Driving the Market.

Worldwide spending on data center systems is projected to reach over, *** billion U.S. dollars in 2025, marking a significant ** percent increase from 2024. This growth reflects the ongoing digital transformation across industries and the increasing demand for advanced computing capabilities. The surge in data center investments is closely tied to the rapid expansion of artificial intelligence technologies, particularly with the wake of generative AI. AI chips fuel market growth The rise in data center spending aligns with the booming AI chip market, which is expected to reach ** billion U.S. dollars by 2025. Nvidia has emerged as a leader in this space, with its data center revenue skyrocketing due to the crucial role its GPUs play in training and running large language models like ChatGPT. The global GPU market, valued at ** billion U.S. dollars in 2024, is a key driver of this growth, powering advancements in machine learning and deep learning applications. Semiconductor industry adapts to AI demands The broader semiconductor industry is also evolving to meet the demands of AI technologies. With global semiconductor revenues surpassing *** billion U.S. dollars in 2023, the market is expected to approach *** billion U.S. dollars in 2024. AI chips are becoming increasingly prevalent in servers, data centers and storage infrastructures. This trend is reflected in the data centers and storage semiconductor market, which is projected to grow from ** billion U.S. dollars in 2023 to *** billion U.S. dollars by 2025, driven by the development of image sensors and edge AI processors.

The Brazil Data Center Construction Market is projected to grow from XX million in 2025 to XX million by 2033, at a CAGR of 7.58%. The market growth is attributed to increasing demand for data centers from various end-user industries, such as banking, financial services, and insurance (BFSI), IT and telecommunications, and government and defense. Additionally, the growing adoption of cloud computing and big data analytics is further driving the need for data centers. The market is segmented based on infrastructure, tier type, and end-user. The infrastructure segment is further divided into electrical infrastructure and mechanical infrastructure. The electrical infrastructure segment includes power distribution solutions, power backup solutions, and service. The mechanical infrastructure segment comprises cooling systems and other mechanical infrastructures. The tier type segment is classified into Tier-I and-II, Tier-III, and Tier-IV. The end-user segment includes BFSI, IT and telecommunications, government and defense, healthcare, and other end-users. Key players in the market include Ascenty Data Centers E Telecomunicacoes, Constructora Sudamericana S A, Fortis Construction, NetApp, Nakano Corporation, Pure Storage, Aceco TI, Delta Group, Turner Construction Co, ZFB Group, DPR Construction Inc, Constructora Sudamericana, HostDime Brasil, AECOM Limited, CyrusOne Inc, RITTAL Sistemas Eletromecânicos Ltda (Rittal GmbH & Co KG), Oracle, and Equinix Inc. With the rise in data consumption and cloud adoption, the demand for data centers in Brazil is witnessing a surge. The need for efficient and reliable data management has driven the growth of the Brazil Data Center Construction Market, projected to reach $XX million by 2027. This report provides an in-depth analysis of the market, including industry trends, market drivers, challenges, end-user segments, and major players. Recent developments include: November 2022: Ascenty will invest $1.5 billion (US$290 million) in constructing five new data centers in South America. The locations of the data centers will be Brazil, Chile, and Colombia., October 2022: Equinix opened a brand-new hyperscale data center in So Paulo, Brazil. The new SP5x facility, situated in Santana de Parnaba close to the organization's SP3 IBX data center, has a capacity of roughly 5MW in its initial phase. After all phases are finished, the data center should have a total capacity of 14.4MW. According to the business, it plans to spend $116.4 million on the facility.. Key drivers for this market are: 9.1 Growth in Network Connectivity and Increased Adoption of Digital Transformation Related Technologies in the Region9.2 Favorable tax Incentive Structure Introduced by Local Governments has Led to the Higher Participation from International Players9.3 Ongoing Consolidation Efforts by Major Data Center Construction Companies to Aid their Expansion Activities9.4 Growing Awareness on Modular Deployments and Increasing Rack Density. Potential restraints include: 10.1 Cost and Infrastructural Concerns Continue to be a Concern10.2 Workforce-Related Challenges. Notable trends are: IT and Telecom to have significant market share.

The size of the Brazil Data Center Industry market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 6.00% during the forecast period.A data center is a structure or location holding the computer systems and networking equipment used to store, process, and transmit data. These centers form the essential infrastructure of businesses, governments, and organizations around the world. They offer computing power, storage capacity, and network connectivity for a wide variety of applications such as email, web hosting, cloud computing, and artificial intelligence.This sector is booming in Brazil as various sectors like banking, healthcare, and electronic commerce become more and more digitized. Large populations with a burgeoning middle class also mean that high demand is witnessed for the data center service. Some of the government initiatives which aimed to quicken the process of digitalization and improve connectivity recently are seen as supporting factors to this industry.As Brazil continues to become the economic powerhouse of Latin America, a good and reliable data center infrastructure is becoming a necessity. The data centers in Brazil enable local businesses to store and process data locally, cut latency, and improve performance. In addition, international companies will find a reason to base themselves in the region because of these data centers. Recent developments include: November 2022: Ascenty will invest R$1.5 billion (US$290 million) in the construction of five new data centers in South America. The locations of the data centers will be Brazil, Chile, and Colombia.October 2022: In So Paulo, Brazil, Equinix opened a brand-new hyperscale data center. The new SP5x facility, which is situated in Santana de Parnaba close to the organization's SP3 IBX data center, has a capacity of roughly 5MW in its initial phase. After all, phases are finished, the data center should have a total capacity of 14.4MW. According to the business, it plans to spend a total of $116.4 million on the facility.August 2022: In Brazil's So Paulo, Scala Data Centers has opened a new data center. At the business' Tamboré campus in So Paulo's Barueri neighborhood, SP4 is now operational. With 6MW of IT power capacity in use, the site is operational in its initial stage. The second stage of SP4 is anticipated to begin operations in September, adding 6MW of IT capacity.. Key drivers for this market are: , High Mobile penetration, Low Tariff, and Mature Regulatory Authority; Successful Privatization and Liberalization Initiatives. Potential restraints include: , Difficulties in Customization According to Business Needs. Notable trends are: OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.

The Brazil data center market is experiencing robust growth, driven by the increasing adoption of cloud computing, e-commerce expansion, and the rising demand for digital services across various sectors. The country's burgeoning digital economy, coupled with government initiatives to improve digital infrastructure, is fueling significant investment in data center facilities. Key hotspots like Rio de Janeiro and Sao Paulo are attracting substantial deployments, particularly from hyperscale providers seeking to serve the Latin American market. The market is segmented by data center size (small, medium, mega, massive), tier type (Tier 1-4), and colocation type (hyperscale, retail, wholesale), reflecting a diverse landscape of providers catering to a range of customer needs. While challenges remain, such as infrastructure limitations in certain regions and regulatory hurdles, the overall outlook for the Brazil data center market remains positive. The presence of established global players alongside local providers suggests a competitive but dynamic environment. Growth is expected to be fueled by the increasing penetration of digital services in sectors such as BFSI, e-commerce, and government, driving demand for reliable and scalable data center solutions. Future growth will likely be influenced by government regulations impacting data sovereignty and the ongoing expansion of fiber optic networks across the country. The forecast period (2025-2033) anticipates continued expansion, with a projected CAGR (assuming a reasonable CAGR of 15% based on global trends and the strong growth drivers identified) indicating substantial market expansion. The demand from hyperscale providers will likely remain a key driver. While the precise market size for 2025 and beyond requires further data, the overall trend suggests a significant opportunity for investment and expansion in the Brazilian data center landscape. The segment breakdown (by location, size, tier, and colocation type) reveals a market with diverse needs and opportunities for various providers, from large hyperscalers to smaller niche players. The presence of multiple significant players suggests competitive pricing and service offerings, ultimately benefiting end-users. Recent developments include: November 2022: Ascenty will invest R$1.5 billion (US$290 million) in the construction of five new data centers in South America. The locations of the data centers will be Brazil, Chile, and Colombia.October 2022: In So Paulo, Brazil, Equinix opened a brand-new hyperscale data center. The new SP5x facility, which is situated in Santana de Parnaba close to the organization's SP3 IBX data center, has a capacity of roughly 5MW in its initial phase. After all, phases are finished, the data center should have a total capacity of 14.4MW. According to the business, it plans to spend a total of $116.4 million on the facility.August 2022: In Brazil's So Paulo, Scala Data Centers has opened a new data center. At the business' Tamboré campus in So Paulo's Barueri neighborhood, SP4 is now operational. With 6MW of IT power capacity in use, the site is operational in its initial stage. The second stage of SP4 is anticipated to begin operations in September, adding 6MW of IT capacity.. Notable trends are: OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.

The Latin American data center construction market is experiencing robust growth, projected to reach a market size of $5.14 billion in 2025 and exhibiting a Compound Annual Growth Rate (CAGR) exceeding 8.71% from 2025 to 2033. This expansion is driven by several key factors. Firstly, the burgeoning digital economy across the region is fueling demand for increased data storage and processing capabilities. Secondly, growing adoption of cloud computing and the increasing reliance on digital services by businesses and governments are creating significant opportunities for data center development. Furthermore, investments in improving digital infrastructure, particularly in key markets like Brazil and Mexico, are further accelerating market growth. The market is segmented by infrastructure type (electrical, mechanical, and general construction), tier level (Tier I-IV), enterprise size (small, medium, and large), and end-user sectors (banking, IT, government, healthcare, etc.). Brazil, Mexico, and other major economies in the region are leading the market expansion. Challenges include regulatory hurdles and the need for skilled labor in some areas. Despite potential restraints, the long-term outlook remains positive. Continued growth in e-commerce, fintech, and other data-intensive industries will necessitate further data center expansion. The increasing adoption of sustainable practices within the data center industry, including the use of renewable energy sources for power, also represents a notable trend. The competitive landscape is dynamic, with both international and regional players vying for market share. Key players are focusing on strategic partnerships and expansions to cater to the rising demand. The market's trajectory suggests substantial opportunities for investors and developers in the coming years. The continued focus on digital transformation across Latin America will be the primary engine of growth, making this a highly attractive market for data center construction. 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: 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. Notable trends are: IT and Telecommunications Segment to Hold a Significant Share of the Market.

The South America data center construction market exhibits robust growth potential, driven by increasing digitalization, cloud adoption, and the expanding e-commerce sector across Brazil, Chile, and the rest of South America. The market's Compound Annual Growth Rate (CAGR) of 11.90% from 2019 to 2024 indicates a significant upward trajectory. This growth is fueled by substantial investments in IT infrastructure by key industries like banking, financial services, insurance (BFSI), IT and telecommunications, and government. Furthermore, the rising demand for hyperscale data centers and edge computing deployments is further stimulating market expansion. Key market segments include electrical infrastructure (power distribution solutions, power backup solutions), mechanical infrastructure (cooling systems, racks), and general construction. Specific technologies like immersion cooling and Direct-To-Chip cooling are gaining traction due to their energy efficiency benefits, aligning with the growing emphasis on sustainability within the industry. While the market faces constraints such as high initial investment costs and potential regulatory hurdles, the long-term prospects remain exceptionally promising. The presence of major players like Ascenty, Equinix, and others, along with the active involvement of construction companies like Constructora Sudamericana, signifies a mature and competitive landscape. Further market segmentation reveals significant opportunity within Tier III and Tier IV data centers, which are increasingly favoured for their resilience and scalability. The South American market is expected to witness continued growth beyond 2024, with Brazil likely to retain its dominant position due to its larger economy and population. However, Chile and the rest of South America also present significant growth opportunities as digital infrastructure investments accelerate across the region. The ongoing focus on improving network connectivity and supporting the expanding digital ecosystem is creating a favorable environment for data center development. The future will likely see increased adoption of sustainable building practices and the integration of advanced technologies to optimize energy efficiency and reduce operational costs. Competition among data center providers and construction firms is expected to remain intense, pushing innovation and driving down costs for clients. Recent developments include: November 2022: Ascenty, the prevailing market leader in Latin America's data center domain, unveiled its groundbreaking initiative to construct five novel facilities, further cementing its position of preeminence with an aggregate of 33 infrastructures spanning Brazil, Chile, Mexico, and now Colombia. The novel data centers are strategically situated, including Santiago 3, encompassing 21,000 m² with a power capacity of 16 MW; Bogota 1 and 2, each spanning 9,000 m² and equipped with a 12 MW capacity; and finally, So Paulo 5 and 6, boasting an expansive area of 7,000 m² and a commanding capacity of 19 MW each., August 2022: The largest vertical data center in Latin America, SGRUTB04, with a total capacity of 18MW, was launched by Scala Data Centers, the region's top platform for environmentally friendly data centers in the hyperscale market. The Tamboré Campus, a complex owned by the firm in Greater So Paulo, Brazil, is where SGRUTB04 is situated. It is devoted to a single hyperscale client and will operate at full capacity for more than ten years. This new Scala data center is 5 meters tall, has seven floors, four dedicated to data halls, and has a total built-out space of over 140,000 square feet, or more than 1,500 racks.. 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: Cost and Infrastructural Concerns Continue to be a Concern, Workforce-Related Challenges. Notable trends are: End User Outlook.

IM3 Open Source Data Center Atlas Description This dataset contains locations of existing data center facilities in the United States. Data center locations were derived from OpenStreetMap (OSM), a crowd-sourced database. Data points from OSM are processed in various ways to determine additional variables provided in the data including: facility area (square feet), associated US county, and US state. This dataset can be used to identify areas of concentrated data center development and inform government and private sector planning strategies for future buildout of data centers and the infrastructure necessary to support it. Usage Notes Validation of OSM-derived data center locations is an ongoing development under the IM3 project, and the database will be updated as new information becomes available. In some instances, both the data center area (e.g., campus) and individual data center buildings are included as overlapping areas in the database. Both values are retained. Data center points, buildings, and campus areas are provided as separate layers in the downloadable data package. Note that data items are not necessarily complete across layers. That is, a specific data center may only be present as a single point geometry in the "point" layer while other data centers are represented in both the campus and building layers. In some cases, data center campuses and/or buildings straddle a county boundary line. Mappings to both counties are retained in the database as separate rows. These data rows will have the same data center id information, but each will have different county information. Crowd-sourced data, by nature, relies on individuals and communities to provide information. As a result, some data may be missing where it has not yet been reported. As we collect information on additional data center locations and as OSM receives additional contributions, the database will be updated to capture additional data points not yet shown. Technical Information Data is available for download under the following formats: GeoPackage (GPKG) CSV Geospatial data is provided in the WGS84 (EPSG:4326) coordinate reference system. The GeoPackage download contains the following layers. See usage notes for more information. "point" "building" "campus" The "point" layer includes all data from OSM that had POINT geometry type (i.e., individual coordinates). The "building" layer includes all OSM data that did not have POINT geometry and where the building tag in the OSM export was neither equal to "no" or null. Data that did not meet the "point" or "building" qualification was assumed to be a facility campus and included in the "campus" layer. The dataset contains the following parameters. Variables provided by OSM are labeled with (OSM-provided). id - unique identification number (OSM-provided with prefix of "node/", "relation/" and similar attributes removed) state - name of US state state_abb - two letter US state abbreviation state_id - state ID number county - name of US county county_id - county ID number ref - reference numbers or codes (OSM-provided) operator - the name of the company, corporation, or person in charge facility (OSM-provided) name - name of facility (OSM-provided) sqft - surface area of facility polygon, measured in square feet. Only available for "building" and "campus" layers lat - latitude of data centroid point lon - longitude of data centroid point type – represented spatial information. One of "point", "building", or "campus". geometry – POLYGON geometry of area footprint (in "campus" and "building" layers) or POINT geometry of locations (in "point" layer). This parameter is not included in the csv download. Attribution Data center locations were derived from OpenStreetMap, which is made available at openstreetmap.org under the Open Database License (ODbL). US state and county boundary information was collected from the US Census Bureau for the year 2024, which is made publicly available at https://www.census.gov/geographies/mapping-files.html Acknowledgment IM3 is a multi-institutional effort led by Pacific Northwest National Laboratory and supported by the U.S. Department of Energy's Office of Science as part of research in MultiSector Dynamics, Earth and Environmental Systems Modeling Program. License The IM3 Open Source Data Center Atlas is made available under the Open Database License: http://opendatacommons.org/licenses/odbl/1.0/. Disclaimer This material was prepared as an account of work sponsored by an agency of the United States Government. Neither the United States Government nor the United States Department of Energy, nor the Contractor, nor any or their employees, nor any jurisdiction or organization that has cooperated in the development of these materials, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness or any information, apparatus, product, software, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States Government or any agency thereof, or Battelle Memorial Institute. The views and opinions of authors expressed herein do not necessarily state or reflect those of the United States Government or any agency thereof. 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