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Data Center Construction Market in Latin America - Industry Outlook and Forecast 2018-2023
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SKU : ARZ180212
  • Published on : February 2018

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This market research report on Latin America data center construction market offers analysis on market size & forecast, market share, industry trends, growth drivers, and vendor analysis. The market study also includes insights on segmentation by type (building development, installation and commissioning services, building design, physical security, and DCIM) and by geography (Brazil, Colombia, Chile, and Rest of Latin America).

Latin America Data Center Construction Market - Overview

The rapid proliferation of mobile devices and high-speed broadband connectivity is attributing to the growth of the Latin America data center construction market. The growing demand for connected devices and the introduction of new technologies such as cloud-based services, IoT, and big data analytics is boosting the demand for new facilities in the Latin American market. Countries such as Chile, Colombia, Mexico, Argentina, and Peru are the major revenue contributors in the Latin America data center construction market. The increasing development of modular facilities solutions will offer new investment opportunities for leading vendors in the market in the region. The growing need for cloud computing services will result in higher revenues for colocation service providers in the Latin American market. Connectivity solutions offered by colocation service providers such as Equinix and Ascenty to cloud operates by AWS, Microsoft, Google, Oracle, and IBM will transform the Latin American market. The market in Latin America consists of local building developers, installation and commissioning service providers, and architectural firms.

The increasing awareness about end-to-end monitoring of infrastructure facilities is expected to gain traction in Latin America data center construction market over the next few years. The adoption of efficient infrastructure and increasing focus to reduce power consumption through monitoring and management of facilities will revolutionize the market in this region. The Latin America data center construction market is expected to generate revenues of approximately $316 million by 2023 and is projected to grow at a CAGR of around 11% during the forecast period.

Latin America Data Center Construction Market Size

Latin America Data Center Construction Market Size in Revenue

 

Latin America Data Center Construction Market - Dynamics

The government initiatives to offer land for development of new facilities and tax incentives will propel the development of the Latin America data center construction market. The Brazilian government introduced Regime Especial de Tributação do Programa Nacional de Banda Larga (REPNBL) program that offers incentives towards the purchase of infrastructure for the facilities that aids in improving local broadband connectivity in the country. Similarly, there are free trade zones in Colombia and Mexico offers zero taxation for activities that include the development, maintenance, and integration of computer systems. Such benefits offered by the government and regulatory bodies in Latin America data center construction market will boost the deployment of modern facilities in the region.

Latin America Data Center Construction Market - Segmentation

This market research report includes a detailed segmentation of the market by type and by geography.

Segmentation of Latin America Data Center Construction Market

Segmentation of Latin America Data Center Construction Market

Latin America Data Center Construction Market – By Type

Modular infrastructure to gain traction in the Latin America data center construction market during forecast period

The Latin America data center construction market by type is segmented into building development, installation and commissioning services, building design, physical security, and DCIM. Building development segment occupied the largest market share in 2017 and is projected to grow at a CAGR of approximately 8% during the forecast period. The growing adoption of modular infrastructure is attributing to the growth of the market in the region. New building development projects across the region will offer lucrative opportunities for architectural firms, infrastructure providers, and operators in Latin America. The increasing focus on building modern facilities that can withstand effects from natural disasters such as earthquakes will revolutionize the data center construction market in Latin America. The growing number of greenfield construction projects that provide access through network fibers will continue to be a trend in the Latin America data center construction market during the forecast period.

Latin America Data Center Construction Market – By Geography

Expansion projects by colocation providers such as Ascenty and Equinix across region will boost growth of Latin America data center construction market during forecast period

The geographical segment in the Latin America data center construction market is classified as Brazil, Colombia, Chile, and Rest of Latin America. Brazil dominated the market share in 2017 and is anticipated to grow at a CAGR of more than 9% during the forecast period. The increasing penetration of internet and use of cloud-based services is boosting demand for new facilities in the Brazilian market. In 2017, Equinix and Ascenty are the largest revenues contributors in the market in Brazil and Latin America. Major submarine cable projects such as BRUSA and Monet are expected complete by 2018 which will result in establishing strong connectivity between the US and the Brazilian market. The rapid deployment of colocation and modular infrastructure facilities is expected to help operators gain larger Latin America data center construction market share and especially Brazilian market over the next few years.

Key Vendor Analysis

The Latin America data center construction market is witnessing a massive increase in the expansion projects by the local and global colocation providers and cloud service providers. The leading operators are focusing on building new facilities that meet the Uptime Institute and International Computer Room Experts Association (ICREA) guidelines to attract new consumers in the market. The development of new data centers of tier 3 standards with the installation of at least N+N redundant infrastructure for power and cooling will help players attract more customers in the Latin American market. Partnerships among local players and colocation providers will provide more revenue opportunities for vendors in the Latin American market.

The major vendors in the market are:

  • Construction Contractors
    • KKR Investment Group (Aceco TI S.A.)
    • AECOM
    • Flex Enclosure
    • ZFB Group
  • Physical Security and DCIM Providers
    • ABB
    • Assa Abloy
    • Bosch Security Systems (Robert Bosch)
    • Honeywell International
    • Schneider Electric
    • Siemens
    • Vertiv

Other prominent vendors include Fluor Corp., Jacobs Engineering Group, Holder Construction, Mortenson Construction, Axis Communication, Cisco, Eaton, Intel DCM, and Panduit.

Key market insights include

  1. The analysis of Latin America data center construction provides market size and growth rate for the forecast period 2018-2023.
  2. It offers comprehensive insights on current industry trends, trend forecast, and growth drivers about the Latin America data center construction.
  3. The report provides the latest analysis of market share, growth drivers, challenges, and investment opportunities.
  4. It offers a complete overview of market segments and the regional outlook for Latin America data center construction.
  5. The report offers a detailed overview of the vendor landscape, competitive analysis, and key market strategies to gain competitive advantage.

View the latest report on Global Data Center Construction Market 2018-2023

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