Dublin, Sept. 05, 2019 (GLOBE NEWSWIRE) -- The "Data Center Construction Market in Latin America - Industry Outlook and Forecast 2019-2024" report has been added to ResearchAndMarkets.com's offering.
The Latin America Data Center Construction Market is projected to grow at a CAGR of around 7% during the forecast period.
The Latin America data center construction market is witnessing significant investments from data center operators such as Ascenty (Digital Realty and Brookfield Infrastructure), Equinix, ODATA, Telefnica, Axtel, Telecarrier, and Entel. The adoption of cloud-based and managed services and colocation and cloud connectivity services is expected to be a major driver for Latin America data center market growth.
The growing number of data centers in Latin America and the increase in awareness to reduce energy consumption have led to the higher adoption of DCIM solutions, which bring significant saving to data center OPEX. Hence, the growing implementation of DCIM solutions in data centers is likely to drive the market in Latin America. Further, the use of artificial intelligence and robot monitoring systems is also expected to contribute to the growth of Latin America data center construction market during the forecast period.
The availability of tax incentives in several Latin American countries for the data center development for both local and global investors is one of the major factors driving the Latin America data construction market during the forecast period.
Growth Factors
Market Segmentation
This research report includes detailed market segmentation by infrastructure, general construction, mechanical infrastructure, tier standards, and geography. The demand for generators in the Latin America data center market is expected to grow significantly due to the unreliability of power supply in several countries in Latin America. However, to reduce carbon emission, natural gas and bi-fuel generators are expected to gain traction in the market.
The use of DRUPS systems is likely to gain prominence in the region, as they combine both battery and flywheel UPS topology with a diesel generator to provide backup during power outages. UPS systems of 2N redundancy are likely to gain significant traction in the Latin America data center construction market due to the increasing Greenfield data center development (generally more than 10MW). The market will also witness the emergence of lithium-ion battery systems as they are more efficient and safer than VRLA batteries.
The growing number of greenfield and modular facilities projects is likely to continue in the market over the next few years. The modular construction will add significant revenue to the market during the forecast period. Besides, the need for the skilled workforce with expertise in the construction and operation of facilities is likely to grow in the Latin America data center construction market. Due to increased uptime and efficacy, the adoption of tier III standards comprising N+1 redundancy will gain propulsion, thus driving the Latin America data center construction market.
The growth of cooling system markets depends on the construction of data centers, type of adopted systems, redundancy, cost, and growth of rack power density. The growing construction of data centers in Latin America will increase the adoption of 45U, 47U, and 48U rack units. The market will also witness increased containment-based design with up to 20 racks. Further, piping units, pump systems, and valves used during the construction of facilities are major revenue generators for the other infrastructure segment.
Over 85% of certified data centers are Tier III types. Most facilities in Brazil, Colombia, Chile, Argentina, Mexico, and Peru are Tier III certified. However, several facilities are being constructed as colocation data centers. Most new facilities are designed as per Tier III standards with a minimum of N+1 redundancy; however, flexible design can help them to be reconfigured up to 2N+1 redundancy as and when the demand arises. The increased investment by hyperscale developers and the adoption of modular data centers of tier IV standards are expected to boost the Latin America data center construction market.
Geographical Analysis
The data center construction market in Brazil is expected to attract high investments from colocation providers during the forecast period. For instance, The national innovation and technology funding agency FINEP (Funding Authority for Studies and Projects) will allocate $670 million to Brazilian Smart Industry projects. Thus, the increased investment will boost the Latin America data center construction market.
Colombia is widely gaining momentum in the data center construction market due to the availability of infrastructure and tax incentives. Further, the increased number of mobile devices and access to the internet will likely to add a greater number of facilities during the forecast period. The growing demand for cloud-based services, internet of things (IoT) and big data analytics has significantly contributed to the growth of the data center market in Chile. Also, substantial investment from big cloud providers such as Google in Chile will bring new job opportunities in the country, thereby boosting the Latin America data center construction market. The investment in improving the digital economy is expected to drive the market among the rest of the countries in Latin America.
Key Vendor Analysis
The Latin America data center construction market is continuing to grow in terms of greenfield and modular data center construction projects. The market is witnessing the increased growth in the region, with high adoption of efficient and modular data center infrastructure solutions. The strong presence of vendors across all three categories - electrical infrastructure, mechanical infrastructure, and general construction - is expected to boost the Latin America data center construction market during the forecast period.
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
4.4.1 Market Segmentation by Infrastructure
4.4.2 Market Segmentation by Electrical Infrastructure
4.4.3 Market Segmentation by Mechanical Infrastructure
4.4.4 Market Segmentation by Cooling Systems
4.4.5 Market Segmentation by General Construction
4.4.6 Market Segmentation by Tier Standards
4.4.7 Market Segmentation by Geography
5 Report Assumptions & Caveats
5.1 Key Caveats
5.2 Currency Conversion
5.3 Market Derivation
6 Market at a Glance
7 Introduction
7.1 Data Center Site Selection Criteria
7.1.1 Key
7.2 Internet Penetration
7.2.1 Impact of Internet Penetration in Latin America
8 Market Dynamics
8.1 Market Growth Enablers
8.1.1 Demand for Cloud, Colocation, & Managed Service Providers
8.1.2 Rising Interest for Modular/Containerized/POD Data Center Deployment
8.1.3 Growth in Construction of Green Data Centers
8.1.4 Growth of Network Connectivity & High-speed Bandwidth
8.1.5 Increased Tax Incentives & Low Cost of Data Center Construction
8.2 Market Growth Restraints
8.2.1 Lack of Skilled Workforce
8.2.2 Location Constraints for Data Center Construction
8.2.3 High Cost of Data Center Infrastructure
8.3 Market Opportunities & Trends
8.3.1 Increased Adoption of DCIM Solutions
8.3.2 Growing Rack Power Density in Data Centers
8.3.3 Increasing Adoption of Free Cooling in Data Centers
8.3.4 Shift to Edge Data Center Deployments
9 Market Landscape
9.1 Market Overview
9.2 Market Size & Forecast
9.3 Five Forces Analysis
9.3.1 Threat of New Entrants
9.3.2 Bargaining Power of Suppliers
9.3.3 Bargaining Power of Buyers
9.3.4 Threat of Substitutes
9.3.5 Competitive Rivalry
10 By Infrastructure
10.1 Market Snapshot & Growth Engine
10.2 Market Overview
10.3 Electrical Infrastructure
10.4 General Construction
10.5 Mechanical Infrastructure
11 By Electrical Infrastructure
11.1 Market Segment Snapshot & Growth Engine
11.2 Generators
11.3 UPS Systems
11.4 Transfer Switches & Switchgears
11.5 Rack PDU
11.6 Other Electrical Infrastructure
12 By Mechanical Infrastructure
12.1 Market Segment Snapshot & Growth Engine
12.2 Cooling Systems
12.3 Racks
12.4 Other mechanical Infrastructure
13 By Cooling Systems
13.1 Market Segment Snapshot & Growth Engine
13.2 CRAC & CRAH Units
13.3 Chiller Units
13.4 Economizers & Evaporative Coolers
13.5 Cooling Towers & Dry Coolers
13.6 Other Cooling Units
14 By Cooling Techniques
14.1 Market Segment Snapshot & Growth Engine
14.2 Air-Based Cooling Techniques
14.3 Liquid-Based Cooling Techniques
15 By General Construction
15.1 Market Segment Snapshot & Growth Engine
15.2 Building Development
15.3 Installation & Commissioning Services
15.4 Building Design
15.5 Physical Security
15.6 DCIM
16 By Tier Standards
16.1 Market segment Snapshot & Growth Engine
16.2 Overview of Tier Standards
16.3 Tier I & Tier II
16.4 Tier III
16.5 Tier IV
17 By Geography
17.1 Regional Snapshot & Growth Engine by Investment
17.2 Regional Snapshot & Growth Engine by Area
17.3 Regional Snapshot & Growth Engine by Power Capacity
18 Brazil
18.1 Market Overview
18.2 Investment: Market Size & Forecast
18.3 Area: Market Size & Forecast
18.4 Power Capacity: Market Size & Forecast
18.5 Infrastructure: Market Size & Forecast
18.5.1 Electrical Infrastructure: Market Size & Forecast
18.5.2 Mechanical Infrastructure: Market Size & Forecast
18.5.3 General Construction: Market Size & Forecast
19 Chile
19.1 Market Overview
19.2 Investment: Market Size & Forecast
19.3 Area: Market Size & Forecast
19.4 Power Capacity: Market Size & Forecast
19.5 Market by Infrastructure
19.5.1 Electrical Infrastructure: Market Size & Forecast
19.5.2 Mechanical Infrastructure: Market Size & Forecast
19.5.3 General Construction: Market Size & Forecast
20 Colombia
20.1 Market Overview
20.2 Investment: Market Size & Forecast
20.3 Area: Market Size & Forecast
20.4 Power Capacity: Market Size & Forecast
20.5 Infrastructure: Market Size & Forecast
20.5.1 Electrical Infrastructure: Market Size & Forecast
20.5.2 Mechanical Infrastructure: Market Size & Forecast
20.5.3 General Construction: Market Size & Forecast
21 Rest of Latin America
21.1 Market Overview
21.2 Investment: Market Size & Forecast
21.3 Area: Market Size & Forecast
21.4 Power Capacity: Market Size & Forecast
21.5 Infrastructure: Market Size & Forecast
21.5.1 Electrical Infrastructure: Market Size & Forecast
21.5.2 Mechanical Infrastructure: Market Size & Forecast
21.5.3 General Construction: Market Size & Forecast
22 Competitive Scenario
22.1 Competitive Scenario
22.2 Infrastructure Providers
22.3 Construction Contractors
22.4 Data Center Investors
23 Key Construction Contractors
23.1 AECOM
23.2 Constructora Sudamericana S.A.
23.3 FlexEnclosure
23.4 Aceco TI
23.5 ZFB Group
24 Key Infrastructure Providers
24.1 ABB
24.2 Eaton
24.3 RITTAL
24.4 KINOLT (Euro-Diesel)
24.5 Schneider Electric
24.6 STULZ
24.7 Vertiv
25 Key Data Center Investors
25.1 Ascenty
25.2 Equinix
25.3 Google
25.4 ODATA
25.5 Tigo (Mallicom)
26 Prominent Construction Contractors
26.1 Fluor Corporation
26.2 Holder Construction
26.3 Jacobs Engineering Group
26.4 Mortenson Construction
27 Prominent Infrastructure Providers
27.1 Active Power (Piller Power Systems)
27.2 Airsys
27.3 Alfa Laval
27.4 Assa Abloy
27.5 Axis Communications
27.6 Bosch Security Systems (Robert Bosch)
27.7 Caterpillar
27.8 Cisco
27.9 Cummins
27.10 Daikin Applied (Daikin Industries)
27.11 Delta Group
27.12 Generac Power Systems
27.13 Honeywell International
27.14 Intel
27.15 Legrand
27.16 Mitsubishi
27.17 Munters
27.18 Nortek Humidity (Condair Group)
27.19 Panduit
27.20 Siemens
28 Prominent Data Center Investors
28.1 Edgeconnex
28.2 GTD Group
28.3 Telefonica
For more information about this report visit https://www.researchandmarkets.com/r/1kgi8s
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