Information Technology
Latin America Emerges as Hotspot for Data Center Development, the Latin America Data Center Construction Market to Hit $2.32 Billion by 2029 - Arizton
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Brazil is a leading data center investment hub in Latin America , with São Paulo serving as a central location for developing various facilities, including hyperscale and cloud regions. This is followed by Rio de Janeiro and Fortaleza. Brazil is actively investing in digital transformations such as the 5G network rollout, which is slated to play a critical role in encouraging digital innovations, IoT, smart cities, and the fourth industrial revolution, leading to foreign investments in the country. Brazil stands out with 15 existing undersea cables that connect the country to other Latin American countries, as well as Portugal , Cameroon , Angola , and the US. The country is slated to witness the deployment of the Firmina submarine cable by Google; this submarine cable is poised to connect Brazil to Argentina , Uruguay , and the US.
In August 2023 , ODATA launched RJ01, its first data center campus in Rio de Janeiro, Brazil ; the facility is spread across a raised floor area of around 18,000 square meters and accounts for a power capacity of 24 MW. The company invested around $50 million in this project and is estimated to lease it out to major hyperscale customers.
In May 2023 , Scala Data Centers opened the SGRUTB05 data center in the Tamboré campus in Barueri City, São Paulo, Brazil . The 6 MW facility is spread across 72,000 square feet and comprises 400 racks; it is leased to the major hyperscale clients. In addition, the company was projected to inaugurate the SGRUTB08 data center in Q1 2024.
Nowadays, data center operators spend their revenue on infrastructure, concentrating on improving redundant power infrastructure rather than on cooling systems throughout the Tier I and Tier II centers. Interestingly, mission-critical applications cannot be operated in these data centers since they account for a power capacity of less than 1 MW. According to the Uptime Institute's design and construction standards, Argentina , Peru , Costa Rica , Mexico , Panama , Nicaragua , Jamaica , and the Dominican Republic are some of the locations in Latin America that account for the presence of those data center facilities that received the Tier II standard certification.
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Latin America data center construction market by 2029?
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