Technavio expects data center construction market in Latin America to reach $8 billion by 2020

Renewable energy

 

This research report includes a detailed segmentation of the data center construction market in Latin America by electrical construction (UPS, Energy storage, Generators, Transfer switches and Switchgear), by mechanical construction (cooling solutions, racks and others) and by general construction (Design and architecture, Site preparation, Frames, Walls and doors, Raised flooring, Ceilings, Security systems and Others). The report also details the services offered by a data center facility (Tier 1 to 4). The key vendors analysed in this research report include Aceco TI, AECOM, Analógica, Constructora Sudamericana, and Turner Construction.

Technavio’s market research analysts estimate the data center construction market in Latin America, to grow at a CAGR of 15% by 2020. The growing adoption of cloud-based services and Internet-of-things (IoT) are prompting enterprises in Latin America to construct data centers to gain a competitive edge. Enterprises in Latin America are focusing on the construction of green data center facilities to reduce power consumption and carbon dioxide emissions. Brazil, Argentina, Chile, and Colombia are the major countries contributing to the data center construction market in Latin America.

The new market research report from Technavio provides a breakdown and analysis of the data center construction segments by technology.

“There is a rise in the number of colocation data center facilities in Latin America to reduce spending on IT infrastructure, improve security, and provide more control to enterprises over critical data. These colocation facilities rent computing servers and storage to enterprises, enable minimal utilization of power and bandwidth, and enhance the security of enterprise IT equipment. These data center colocation facilities minimize the CAPEX related to building, operating, and updating a data center facility,” says Rakesh Panda, Lead Analyst, ICT, Technavio Research

In terms of mechanical construction of data centers, racks are the fastest-growing segment growing at a CAGR of more than 25%. Racks provide storage, and allow networking of enterprise IT equipment. The in-built sensors in racks facilitate better monitoring and management of the data center environment. Now-a-days, the contemporary racks include cooling systems, which are crucial for data center design.

Data center construction market in Latin America by racks 2015-2020 ($ millions)

Source: Technavio, 2016

The key players in the data center construction market in Latin America are Aceco TI, AECOM, Analógica, Constructora Sudamericana, and Turner Construction. Construction of data centers in Latin America is growing rapidly. Increased demand for cloud computing and the exponential growth in data volumes will trigger an increase in the number of data centers during the forecast period.

A more detailed analysis is available in the Technavio report Data Center Construction Market in Latin America 2016-2020.

We can customize reports by other regions and specific segments upon request.

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