Latin America Data Center Construction Market 2022-2027 - Tax Incentives Enhancing Data Center Investments - ResearchAndMarkets.com

The "Latin America Data Center Construction Market - Industry Outlook and Forecast 2022-2027" report has been added to ResearchAndMarkets.com's offering.

Some of the major construction parameters and standards on which data centers in Latin America are built include Uptime Institute's Tier standards, LEED Certification, TIA 942, and ANSI/BICSI 002-2019 certifications

There is an increase in the construction of data centers built to cater to increasing demand by hyperscale and cloud service providers such as Microsoft, Amazon Web Services, Google, IBM, Huawei, and Tencent, among others, which will also drive the market, especially for wholesale colocation

Brazil is the market leader, contributing over 50% of the investment to Latin America, followed by other countries such as Mexico, Columbia, Chile, and Uruguay. Modular data center deployment is popular in other Latin American countries such as the Caribbean and Paraguay, among others

Scala Data Centers, a hyperscale developer in Brazil, has created the region's Center of Excellence in Engineering (CoE). The CoE will manage the end-to-end design and construction process of data centers built by Scala Data Centers in Latin America, with a focus on energy and operational efficiencies

KEY TRENDS DRIVING THE MARKET

Deployments Enabling Edge Data Center Deployments

• Latin American countries are working toward digital transformation to attract foreign investments. 5G network deployment fuels digital transformation, IoT, smart cities, and the fourth industrial revolution
• In February 2021, Chile completed the first 5G spectrum tender in Latin America. In November 2021, Brazil raised around $8 billion investment to deploy and operate 5G data networks
• The increasing deployment and coverage of 5G will lead to the development of edge data center facilities, thereby creating investment opportunities in the market

Adoption of Cloud, IoT, and Big Data Driving Wholesale Colocation

• In Latin America, one of the major drivers for the increasing construction of hyperscale facilities is the increase in cloud computing services, driven by the digitalization of enterprises, and the shift to private, public, or a hybrid cloud architecture
• For providing high quality and low latency cloud-based services across Latin America, the major cloud service providers are expanding their reach across the region via cloud regions/cloud-on-ramps/Points of Presence (PoPs)

Deployment of Submarine Cables Fueling Data Center Construction

• In Latin America, countries having submarine cable connectivity include Brazil, Colombia, Chile, Peru, Uruguay, and Mexico, among others, connecting the region internally as well as to other regions such as Africa, Europe, North America, and APAC
• Many submarine cables, such as the Firmina cable, and the Caribbean Express (CX cable), among others, are expected to be operational in the next two to three years and will connect the region further with the rest of the world
• Investments in submarine cables in the region have grown considerably over the years with the help of enterprises and governments, which continuously strengthen fiber infrastructure for better connectivity with other countries
• Hyperscale operators and telecommunication providers are also investing in submarine cables to improve network connectivity in various Latin American countries

Tax Incentives Boosting Data Center Construction

• Various countries are providing tax incentives to investors based locally or even global investors, which will aid in increased construction of data centers
• The majority of these tax incentives provided by provinces and countries are based on jobs, land taxes, capital, and the lower power price needs of data center investments across regions
• A free trade zone is provided in Columbia as a suitable location for mission-critical facilities enabling tax incentives for the data center developers. Similarly, the southern region of Patagonia, an upcoming digital hub in Chile, is planning to provide tax incentives for data center growth

COMPETITIVE ANALYSIS

• Some of the major vendors involved in theLatin America data center construction market are AECOM, Constructora Sudamericana, Fluor Corporation, and Jacobs Engineering, among others
• These vendors are collaborating with data center operators to provide reliable construction solutions. For instance, ZFB Group is looking to invest around $90 million in the Zetta DC data center based on Tier IV standards
• Core & shell development retains the highest share in construction. In Latin America, the cost of core & shell is lower in countries such as Mexico and Colombia while highest in Chile & Argentina
• In recent years, there has been an immense focus on reducing the energy consumption and carbon emission levels of data centers to improve their green credentials

The following factors are likely to contribute to the Latin America data center construction market growth during the forecast period:

• Adoption of Cloud, IoT & Big Data
• Construction of Modular Data Centers
• Increased Deployment of Submarine Cables
• Thriving Digital Economy in Latin America
• Tax Incentives Enhancing Data Center Investments

Key Support Infrastructure

• ABB
• Alfa Laval
• Assa Abloy
• Axis Communications
• Bosch Security Systems
• Caterpillar
• Cummins
• Delta Electronics
• Daikin Applied
• EATON
• Generac Power System
• Honeywell International
• Johnson Controls
• Legrand
• Mitsubishi Electric
• Munters
• Piller Power Systems
• Panduit
• Rittal
• Rolls-Royce
• Schneider Electric
• STULZ
• Siemens
• Vertiv

Prominent Construction Contractors

• AECOM
• Aceco TI
• Constructora Sudamericana
• Fluor Corporation
• Holder Construction
• Jacobs Engineering
• Quark
• ZFB Group

Key Data Center Investors

• Ascenty
• Ava Telecom
• Amazon Web Services (AWS)
• CloudHQ
• EdgeConneX
• Equinix
• Google
• Globenet
• HostDime
• InterNexa
• Lumen Technologies
• Microsoft
• Nabiax
• ODATA
• Scala Data Centers
• Telmex
• Tigo (MALLICOM)
• Quantico

Key Topics Covered:

1 Research Methodology

2 Research Objectives

3 Research Process

4 Scope & Coverage

4.1 Market Definition

4.2 Base Year

4.3 Scope of the Study

4.4 Market Segments

5 Report Assumptions & Caveats

5.1 Key Caveats

5.2 Currency Conversion

5.3 Market Derivation

6 Market at a Glance

7 Premium Insights

7.1 Key Market Highlights

7.2 Key Trends Driving the Market

7.3 Competitive Analysis

8 Introduction

8.1 Key Considerations in Data Center Construction

8.2 Data Center Design Certifications

8.3 Construction Costs in Latin America

8.4 Data Center Site Selection Criteria

9 Market Opportunities & Trends

9.1 5G Deployments Fueling Edge Data Center Deployments

9.2 Growing Rack Power Density

9.3 Deployment of Microgrids in Data Centers

9.4 Implementation of Automation & Ai in Data Centers

9.5 Sustainable Data Center Construction Materials

9.6 Rising Adoption of Dcim

10 Market Growth Enablers

10.1 Adoption of Cloud, IoT & Big Data

10.2 Impact of Covid-19

10.3 Construction of Modular Data Centers

10.4 Increased Deployment of Submarine Cables

10.5 Thriving Digital Economy in Latin America

10.6 Tax Incentives Enhancing Data Center Investments

11 Market Restraints

11.1 Security Challenges in Data Centers

11.2 Location Constraints on Data Center Construction

11.3 Lack of Skilled Workforce

11.4 Rising Carbon Emissions from Data Centers

11.5 Supply Chain Challenges

12 Market Landscape

12.1 Market Overview

12.2 Investment: Market Size & Forecast

12.3 Area: Market Size & Forecast

12.4 Power Capacity: Market Size & Forecast

12.5 Five Forces Analysis

13 Infrastructure

13.1 Market Snapshot & Growth Engine

13.2 Electrical Infrastructure

13.3 Mechanical Infrastructure

13.4 General Construction

14 Electrical Infrastructure

14.1 Market Snapshot & Growth Engine

14.2 Ups Systems

14.3 Generators

14.4 Transfer Switches & Switchgear

14.5 Power Distribution Units

14.6 Other Electrical Infrastructure

15 Mechanical Infrastructure

15.1 Market Snapshot & Growth Engine

15.2 Cooling Systems

15.3 Racks

15.4 Other Mechanical Infrastructure

16 Cooling Systems

16.1 Market Snapshot & Growth Engine

16.2 Crac & Crah Units

16.3 Chiller Units

16.4 Cooling Towers, Condensers & Dry Coolers

16.5 Economizers & Evaporative Coolers

16.6 Other Cooling Units

17 Cooling Technique

17.1 Market Snapshot & Growth Engine

17.2 Air-Based Cooling Technique

17.3 Liquid-Based Cooling Technique

18 General Construction

18.1 Market Snapshot & Growth Engine

18.2 Core & Shell Development

18.3 Installation & Commissioning Services

18.4 Engineering & Building Design

18.5 Fire Detection & Suppression

18.6 Physical Security

18.7 Dcim/Bms Solutions

19 Tier Standards

19.1 Market Snapshot & Growth Engine

19.2 Overview of Tier Standards

19.3 Tier I & Ii

19.4 Tier Iii

19.5 Tier Iv

20. Geography

20.1 Investment: Market Snapshot & Growth Engine

20.2 Area: Market Snapshot & Growth Engine

20.3 Power Capacity: Market Snapshot & Growth Engine

For more information about this report visit https://www.researchandmarkets.com/r/t6mhsk

View source version on businesswire.com: https://www.businesswire.com/news/home/20220726005573/en/