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

DUBLIN–(BUSINESS WIRE)–The “Latin America Data Center Construction Market – Industry Outlook and Forecast 2022-2027” report has been added to from ResearchAndMarkets.com offer.

Some of the key construction parameters and standards that data centers in Latin America are built on include Uptime Institute Tier standards, LEED certification, TIA 942, and ANSI/BICSI 002-2019 certifications.

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

Brazil is the market leader, contributing more than 50% of investments in Latin America, followed by other countries such as Mexico, Colombia, Chile and Uruguay. The deployment of modular data centers 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 Engineering Excellence (CoE). The CoE will manage the end-to-end design and construction process for data centers built by Scala Data Centers in Latin America, with a focus on energy and operational efficiency

KEY TRENDS BEARING THE MARKET

Deployments Enabling Edge Data Center Deployments

  • Latin American countries are working on digital transformation to attract foreign investment. 5G Network Deployment Fuels Digital Transformation, IoT, Smart Cities and the Fourth Industrial Revolution

  • In February 2021, Chile finalized the first tender for 5G spectrum in Latin America. In November 2021, Brazil raised approximately $8 billion in investment to deploy and operate 5G data networks

  • The increasing deployment and coverage of 5G will lead to the development of data center installations at the edge, thus creating investment opportunities in the market.

Adoption of Cloud, IoT and Big Data driving wholesale colocation

  • In Latin America, one of the main drivers for the growing construction of large-scale facilities is the increase in cloud computing services, driven by the digitization of enterprises and the shift to private, public or hybrid cloud architecture.

  • To deliver high-quality, low-latency cloud services across Latin America, leading cloud service providers are expanding their reach in the region through cloud regions/cloud-on-ramps/points of presence (PoPs)

Deployment of submarine cables powering the construction of the data center

  • In Latin America, countries with submarine cable connectivity include Brazil, Colombia, Chile, Peru, Uruguay and Mexico, among others, connecting the region internally as well as to other 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 within the next two to three years and will further connect the region to the rest of the world.

  • Investments in submarine cables in the region have increased significantly over the years with the help of businesses and governments, which are continuously strengthening the fiber infrastructure for better connectivity with other countries.

  • Hyperscale operators and telecommunications providers are also investing in submarine cables to improve network connectivity in various Latin American countries.

Tax incentives spur data center construction

  • Various countries are offering tax incentives to local or even global investors which will help increase data center construction

  • The majority of these tax incentives provided by provinces and countries are based on lower jobs, property taxes, capital and electricity price requirements of data center investments in all regions.

  • A free trade zone is planned in Colombia as a suitable location for critical facilities, allowing tax incentives for data center developers. Similarly, the southern region of Patagonia, a future digital hub in Chile, plans to provide tax incentives for data center growth.

COMPETITIVE ANALYSIS

  • Some of the major vendors involved in the Latin America data center construction market are AECOM, Constructora Sudamericana, Fluor Corporation, and Jacobs Engineering, among others.

  • These vendors work with data center operators to provide reliable building solutions. For example, 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 and shell is lowest in countries like Mexico and Colombia, while it is highest in Chile and Argentina

  • In recent years, there has been a focus on reducing the energy consumption and carbon emission levels of data centers in order to improve their green credentials.

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

  • Adoption of Cloud, IoT and Big Data

  • Construction of modular data centers

  • Increased deployment of submarine cables

  • A thriving digital economy in Latin America

  • Tax incentives improving investments in data centers

Key Support Infrastructure

  • ABB

  • Alfa Laval

  • Assa Abloy

  • Communications Axis

  • Bosch security systems

  • caterpillar

  • Cummins

  • Delta Electronics

  • Daikin applied

  • EATON

  • Generac Power System

  • Honeywell International

  • Johnson Controls

  • Great

  • Electric Mitsubishi

  • Munters

  • Piller Power Systems

  • Panduit

  • Rittal

  • Rolls Royce

  • Schneider-Electric

  • STULZ

  • Siemens

  • Vertiv

Renowned construction contractors

  • AECOM

  • Aceco TI

  • South American builder

  • Fluor Corporation

  • Stand construction

  • Jacobs Engineering

  • Quark

  • ZFB Group

Top Data Center Investors

  • Ascent

  • 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

Main topics covered:

1 Research methodology

2 research objectives

3 Research process

4 Scope and coverage

4.1 Market Definition

4.2 Reference year

4.3 Scope of the study

4.4 Market Segments

5 Report assumptions and caveats

5.1 Main caveats

5.2 Currency conversion

5.3 Market Derivation

6 The market at a glance

7 premium previews

7.1 Major Market Highlights

7.2 Key Trends Driving the Market

7.3 Competitive Analysis

8 Presentation

8.1 Key Considerations in Building a Data Center

8.2 Data Center Design Certifications

8.3 Construction costs in Latin America

8.4 Data Center Site Selection Criteria

9 Opportunities and Market Trends

9.1 5G Deployments Powering Edge Data Center Deployments

9.2 Increasing Rack Power Density

9.3 Deployment of Microgrids in Data Centers

9.4 Implementing Automation and AI in Data Centers

9.5 Sustainable Data Center Building Materials

9.6 Growing Adoption of Dcim

10 Market Growth Catalysts

10.1 Adoption of Cloud, IoT and Big Data

10.2 Impact of Covid-19

10.3 Construction of Modular Data Centers

10.4 Increased deployment of submarine cables

10.5 Booming Digital Economy in Latin America

10.6 Tax Incentives Enhancing Data Center Investments

11 Market Constraints

11.1 Data Center Security Challenges

11.2 Location Constraints on Data Center Construction

11.3 Lack of skilled labor

11.4 Increase in Data Center Carbon Emissions

11.5 Supply chain challenges

12 Market landscape

12.1 Market Overview

12.2 Investment: Market Size and Forecast

12.3 Domain: Market Size and Forecast

12.4 Energy Capacity: Market Size and Forecast

12.5 Five forces analysis

13 Infrastructure

13.1 Market Overview and Growth Driver

13.2 Electrical infrastructure

13.3 Mechanical infrastructure

13.4 General construction

14 Electrical infrastructure

14.1 Market Overview and Growth Driver

14.2 Inverter systems

14.3 Generators

14.4 Transfer switches and switchgear

14.5 Power Distribution Units

14.6 Other electrical infrastructure

15 Mechanical infrastructure

15.1 Market Overview and Growth Driver

15.2 Cooling systems

15.3 Racks

15.4 Other mechanical infrastructure

16 cooling systems

16.1 Market Overview and Growth Driver

16.2 Crac & Crah Units

16.3 Cooling units

16.4 Cooling towers, condensers and air coolers

16.5 Economizers and Evaporative Coolers

16.6 Other cooling units

17 Cooling technique

17.1 Market Overview and Growth Driver

17.2 Air-based cooling technique

17.3 Liquid-based cooling technique

18 General Construction

18.1 Market Overview and Growth Driver

18.2 Core and shell development

18.3 Installation and commissioning services

18.4 Engineering and building design

18.5 Fire Detection and Extinguishing

18.6 Physical Security

18.7 Dcim/Bms Solutions

19-level standards

19.1 Market Overview and Growth Driver

19.2 Level Standards Overview

19.3 Level I and II

19.4 Level III

19.5 Level IV

20. Geography

20.1 Investment: Market Overview and Growth Driver

20.2 Domain: Market Overview and Growth Driver

20.3 Power Capacity: Market Overview and Growth Driver

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

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