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Latin America Data Center Construction Market - Industry Outlook & Forecast 2026-2031

Publisher Arizton Advisory and Intelligence
Published Apr 03, 2026
Length 205 Pages
SKU # ARZ21133465

Description

The Latin America data center construction market size by investment is expected to grow at a CAGR of 14.92% from 2025 to 2031.

LATIN AMERICA DATA CENTER CONSTRUCTION MARKET TRENDS

Sustainability Initiatives and Renewable Energy
  • The data center market in Latin America is increasingly integrating sustainability and renewable energy into infrastructure development, supported by strong government policies and corporate commitments to reduce carbon emissions. Countries across the region are setting ambitious renewable energy and carbon-neutrality targets while encouraging energy-efficient digital infrastructure and green power adoption for hyperscale and colocation facilities.
  • In November 2025, Google agreed to purchase 200,000 tons of carbon removal credits from Brazilian reforestation startup Mombak, supporting large-scale restoration of degraded land in the Amazon while advancing high-integrity, nature-based climate solutions. The partnership also integrates AI-driven biodiversity monitoring through Google DeepMind, reinforcing the growing role of Brazil in global carbon removal and ecosystem restoration efforts.
  • The combination of renewable energy expansion, supportive government policies, and sustainability-focused investments strengthens the position of Latin America as an attractive destination for green data center development. These initiatives are expected to accelerate the adoption of low-carbon power, energy-efficient technologies, and environmentally responsible digital infrastructure across the region.
Increased Adoption of AI, Automation and Digitalization
  • Brazil continues to experience a broad-based digital transformation, supported by a steadily expanding internet user population and coordinated efforts from both the public and private sectors. This momentum reflects the growing reliance of the country on digital connectivity as a foundation for economic and social development. Brazil continues to experience a broad-based digital transformation, supported by a steadily expanding internet user population and coordinated efforts from both the public and private sectors. This momentum reflects the growing reliance of the country on digital connectivity as a foundation for economic and social development. By 2025, internet penetration in Brazil had surpassed 86.5%, translating to more than 184 million users nationwide.
  • To meet rising demand, data center operators in Argentina are actively expanding their facilities and increasing investments in AI-focused infrastructure. These upgrades include adding high-density capacity, deploying GPU-ready environments, and improving power and cooling systems to support advanced AI workloads. In May 2025, the government of Argentina promoted the country to become a global AI hub, aiming to be the "world’s fourth AI center" by offering minimal regulation, abundant land, and low energy costs to global tech firms.
  • Chile is increasingly positioning itself as a regional center for digital innovation and emerging technologies, driven by a strong tech ecosystem and forward-thinking government policies. Government initiatives such as the Digital Transformation Strategy 2035 emphasize improving digital skills, strengthening cybersecurity frameworks, and enhancing technology-enabled public services. Active measures to attract global tech partnerships are further elevating the position of Chile as a regional innovation powerhouse.
MARKET SEGMENT ANALYSIS
  • The electrical infrastructure is witnessing several innovations in the UPS systems, generators, transfer switches & switchgears and other electrical equipment. Some of such innovations include HVO fuel for generator sets which reduces emission as a measure to curb emissions.
  • Additionally, several innovative UPS batteries such as Nickel-Zinc (NiZn) and Sodium-Ion batteries are gaining traction in the market due to their high power density, safety, sustainability, and other factors.
  • Liquid cooling is becoming a significant trend that major colocation operators are implementing in their data center facilities. It is emerging as a key differentiator for colocation providers as AI and compute-intensive workloads continue to grow. Companies like ODATA (Aligned Data Centers), Scala Data Centers, Ascenty and several others are leading the way by offering scalable and energy-efficient solutions that can support the increasing demands of high-performance computing.
GEOGRAPHY ANALYSIS
  • In Latin America data center construction market, Brazil is expected to be the largest market in 2031 in terms of power capacity, with a share of around 36% in 2031.
  • The cloud market in Brazil is expected to continue experiencing significant growth in the future. In September 2025, Alibaba Cloud announced plans to launch its first data center in Brazil as part of a broader global expansion across eight locations. The investment supports rising demand for AI-driven cloud services and strengthens the role of Brazil in the international cloud infrastructure network of Alibaba.
  • The long-term energy strategy of Chile includes achieving carbon neutrality by 2050 and converting a significant portion of coal-fired units by the end of 2025 under the Ministry of Energy’s Decarbonization Plan. In January 2025, ODATA signed a 100% renewable PPA with Atlas Renewable Energy to supply the full energy requirements of its 28MW ST01 data center in Chile, using power from Atlas’s 1.5GW solar and storage portfolio. This agreement supports the aim of ODATA to run all Chilean operations on renewable energy and strengthen its sustainability commitments.
  • Mexico holds a significant share of the Latin American data center market growth. The Mexico data center market is driven by factors such as the growing adoption of digital platforms, advanced technologies including AI, IoT, and big data, the digital economy, expanding 5G network connectivity, increasing internet users, rising data traffic, government initiatives, as well as the growth in mobile and social media users; furthermore, these factors are expected to significantly enhance data traffic and demand for data centers.
COMPETITIVE LANDSCAPE
  • The Latin America data center construction market has the presence of key investors such as Actis, Ascenty, AWS, Cirion Technologies, Claro, EdgeConneX, Elea Data Centers, EMPATEL SAPEM, Equinix, Etix Everywhere, G2K, Google, GTD, HostDime, Iplan, IPXON Networks, KIO Data Centers, Microsoft, ODATA (Aligned Data Centers), OneX Data Center, Quantico Data Center, Scala Data Centers, Takoda Data Centers, Tecto Data Centers, Telecentro Empresas and others.
  • The Latin America data center construction market continues to attract large-scale investments from major operators. For example, The Cirion Technolgies announced its plan to expand the data center in Rio De Janeiro, Brazil, for which it acquired around 300,000 sq ft for the project. The new data center, named RIO2, is likely to offer around 60 MW of power capacity.
  • New Entrants include 247 Data Centers, Ada Infrastructure, Atlantic Data Centers, Ava Telecom, CloudHQ, Fermaca Networks, Layer 9 Data Centers, MDC Data Centers, OpenAI & Sur Energy, Surfix Data Center, Terranova, TECfusions and several others.
  • In Brazil, in February 2026, Microsoft launched two new data halls in São Paulo, part of the company's $2.7 billion commitment to AI and cloud infrastructure in Brazil.
LATIN AMERICA DATA CENTER CONSTRUCTION MARKET LEADERS
  • ABB
  • Alfa Laval
  • ASSA ABLOY
  • Axis Communications
  • Bosch
  • Bruno Generators
  • Caterpillar
  • Cummins
The report includes the investment in the following areas:
  • Facility Type
  • Hyperscale Data Centers
  • Colocation Data Centers
  • Enterprise Data Centers
  • Infrastructure
  • Electrical Infrastructure
  • Mechanical Infrastructure
  • General Construction
  • Electrical Infrastructure
  • UPS Systems
  • Generators
  • Transfer Switches & Switchgears
  • PDUs
  • Other Electrical Infrastructure
  • Mechanical Infrastructure
  • Cooling Systems
  • Racks
  • Other Mechanical Infrastructure
  • Cooling System
  • CRAC & CRAH Units
  • Chillers Units
  • Cooling Towers, Condensers, and Dry Coolers
  • Other Cooling Units
  • Cooling Techniques
  • Air-based Cooling Technique
  • Liquid-based Cooling Technique
  • General Construction
  • Core & Shell Development
  • Installation & Commissioning Services
  • Engineering & Building Design
  • Fire Detection & Suppression
  • Physical Security
  • DCIM/BMS Solutions
  • Tier Standards
  • Tier I & Tier II
  • Tier III
  • Tier IV
  • Geography
  • Brazil
  • Chile
  • Mexico
  • Colombia
  • Argentina
  • Rest of Latin America
Key Data Center Support Infrastructure Providers
  • ABB
  • Alfa Laval
  • ASSA ABLOY
  • Axis Communications
  • Bosch
  • Bruno Generators
  • Caterpillar
  • Cummins
  • Daikin Applied
  • Delta Electronics
  • Detroit Diesel
  • Eaton
  • Generac Power Systems
  • Honeywell
  • Johnson Controls
  • KOHLER
  • Legrand
  • Mitsubishi Electric
  • Munters
  • Narada
  • Panduit
  • Piller Power Systems
  • Rittal
  • Rolls-Royce
  • Schneider Electric
  • Siemens
  • STULZ
  • Vertiv
Key Data Center Contractors & Subcontractors
  • AECOM
  • Aceco TI
  • Afonso França Engenharia
  • Constructora Sudamericana
  • Datawaves
  • DLR Group
  • Fluor Corporation
  • Gensler
  • Grupo PML
  • Hyphen
  • Jacobs Engineering
  • KMD Architects
  • Mendes Holler Engineering
  • Micrico
  • Modular Data Centers
  • PQC
  • Quark
  • Racional Engenharia
  • Soben
  • Syska Henessey Group
  • The Weitz Company
  • Turner & Townsend
  • Turner Construction
  • Zeittec
  • ZFB Group
Key Data Center Investors
  • Actis (NextStream)
  • Angola Cables
  • Ascenty
  • Amazon Web Services
  • Cirion Technologies
  • Claro
  • DHAmericas
  • Edge Uno
  • EdgeConneX
  • Elea Data Centers
  • EMPATEL SAPEM
  • Equinix
  • Etix Everywhere
  • EVEO
  • G2K
  • GlobeNet International Corp
  • Google
  • GTD
  • HostDime
  • Iplan
  • IPXON Networks
  • Internexa
  • KIO Data Centers
  • Mexico Telecom Partners
  • Microsoft
  • NetGlobalis
  • ODATA (Aligned Data Centers)
  • OneX Data Center
  • PowerHost
  • Quantico Data Center
  • Scala Data Centers
  • SONDA
  • Takoda Data Centers
  • Tecto Data Centers
  • Telecentro Empresas
  • Telecom Argentina
New Entrants
  • 247 Data Centers
  • Ada Infrastructure
  • Atlantic Data Centers
  • Ava Telecom
  • CloudHQ
  • Fermaca Networks
  • Layer 9 Data Centers
  • MDC Data Centers
  • OpenAI & Sur Energy
  • Surfix Data Center
  • Terranova
  • TECfusions
KEY QUESTIONS ANSWERED:

1. What is the estimated market size in terms of area in the Latin America data center construction market by 2031?

2. How big is the Latin America data center construction market?

3. What is the growth rate of the Latin America data center construction market?

4. What are the key trends in the Latin America data center construction market?

5. How many MW of power capacity is expected to reach the Latin America data center construction market by 2031?

Table of Contents

205 Pages
1. ABOUT ARIZTON
2. ABOUT OUR DATA CENTER CAPABILITIES
3. WHAT’S INCLUDED
4. SEGMENTS INCLUDED
5. RESEARCH METHODOLOGY
6. MARKET AT GLANCE
7. PREMIUM INSIGHTS
8. INTRODUCTION
9. INVESTMENT OPPORTUNITIES
9.1. INVESTMENT: MARKET SIZE & FORECAST
9.2. AREA: MARKET SIZE & FORECAST
9.3. POWER CAPACITY: MARKET SIZE & FORECAST
10. MARKET DYNAMICS
10.1. MARKET OPPORTUNITIES & TRENDS
10.2. MARKET GROWTH ENABLERS
10.3. MARKET RESTRAINTS
10.4. SITE SELECTION CRITERIA
11. FACILITY TYPE SEGMENTATION
11.1. HYPERSCALE DATA CENTERS
11.2. COLOCATION DATA CENTERS
11.3. ENTERPRISE DATA CENTERS
12. INFRASTRUCTURE SEGMENTATION
12.1. ELECTRICAL INFRASTRUCTURE
12.2. MECHANICAL INFRASTRUCTURE
12.3. COOLING SYSTEMS
12.4. COOLING TECHNIQUES
12.5. GENERAL CONSTRUCTION
13. TIER STANDARDS SEGMENTATION
14. GEOGRAPHY SEGMENTATION
15. LATIN AMERICA
15.1. MARKET SNAPSHOT & KEY HIGHLIGHTS
15.2. DATA CENTER MARKET BY SUPPORT INFRASTRUCTURE
16. BRAZIL
16.1. IMPACT OF AI ON THE DATA CENTER INDUSTRY IN BRAZIL
16.2. GOVERNMENT RULE AND REGULATION FOR DATA CENTER
16.3. MARKET BY INVESTMENT
16.4. MARKET BY AREA
16.5. MARKET BY POWER CAPACITY
16.6. KEY SUPPORT INFRASTRUCTURE ADOPTION
16.7. LIST OF UPCOMING DATA CENTER PROJECTS IN BRAZIL
17. CHILE
17.1. IMPACT OF AI ON THE DATA CENTER INDUSTRY IN CHILE
17.2. GOVERNMENT RULE AND REGULATION FOR DATA CENTER
17.3. MARKET BY INVESTMENT
17.4. MARKET BY AREA
17.5. MARKET BY POWER CAPACITY
17.6. KEY SUPPORT INFRASTRUCTURE ADOPTION
17.7. LIST OF UPCOMING DATA CENTER PROJECTS IN CHILE
18. MEXICO
18.1. IMPACT OF AI ON THE DATA CENTER INDUSTRY IN MEXICO
18.2. GOVERNMENT RULE AND REGULATION FOR DATA CENTER
18.3. MARKET BY INVESTMENT
18.4. MARKET BY AREA
18.5. MARKET BY POWER CAPACITY
18.6. KEY SUPPORT INFRASTRUCTURE ADOPTION
18.7. LIST OF UPCOMING DATA CENTER PROJECTS IN MEXICO
19. COLOMBIA
19.1. IMPACT OF AI ON THE DATA CENTER INDUSTRY IN COLOMBIA
19.2. GOVERNMENT RULE AND REGULATION FOR DATA CENTER
19.3. MARKET BY INVESTMENT
19.4. MARKET BY AREA
19.5. MARKET BY POWER CAPACITY
19.6. KEY SUPPORT INFRASTRUCTURE ADOPTION
19.7. LIST OF UPCOMING DATA CENTER PROJECTS IN COLOMBIA
20. ARGENTINA
20.1. IMPACT OF AI ON THE DATA CENTER INDUSTRY IN ARGENTINA
20.2. GOVERNMENT RULE AND REGULATION FOR DATA CENTER
20.3. MARKET BY INVESTMENT
20.4. MARKET BY AREA
20.5. MARKET BY POWER CAPACITY
20.6. KEY SUPPORT INFRASTRUCTURE ADOPTION
20.7. LIST OF UPCOMING DATA CENTER PROJECTS IN ARGENTINA
21. REST OF LATIN AMERICA
21.1. MARKET BY INVESTMENT
21.2. MARKET BY AREA
21.3. MARKET BY POWER CAPACITY
21.4. KEY SUPPORT INFRASTRUCTURE ADOPTION
22. MARKET PARTICIPANTS
22.1. KEY DATA CENTER SUPPORT INFRASTRUCTURE PROVIDERS
22.2. KEY DATA CENTER CONTRACTORS & SUBCONTRACTORS
22.3. KEY DATA CENTER INVESTORS
22.4. NEW ENTRANTS
23. QUANTITATIVE SUMMARY
24. APPENDIX
24.1. ABBREVIATIONS
24.2. DEFINITIONS
24.3. SEGMENTAL COVERAGE

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