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The Latin America data center construction market is projected to grow at a CAGR of 14.92% from 2025 to 2031, driven by sustainability initiatives and digital transformation. Governments and corporations in the region are prioritizing renewable energy, AI advancements, and energy-efficient infrastructure, positioning Latin America as a hub for green data centers. Brazil is expected to lead, with significant investments from global tech companies like Alibaba and Google. The demand for advanced AI and cloud services fuels expansion across other key markets, including Argentina, Chile, and Mexico, fostering innovation and infrastructure development.
Latin American Data Center Construction Market
Latin American Data Center Construction Market · GlobeNewswire Inc.
Dublin, May 14, 2026 (GLOBE NEWSWIRE) — The “Latin America Data Center Construction Market – Industry Outlook & Forecast 2026-2031” report has been added to ResearchAndMarkets.com’s offering.
The Latin America data center construction market size by investment is expected to grow at a CAGR of 14.92% from 2025 to 2031
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.
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COMPETITIVE LANDSCAPE
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 Sao Paulo, part of the company’s $2.7 billion commitment to AI and cloud infrastructure in Brazil.
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.
KEY QUESTIONS ANSWERED
What is the estimated market size in terms of area in the Latin America data center construction market by 2031?
How big is the Latin America data center construction market?
What is the growth rate of the Latin America data center construction market?
What are the key trends in the Latin America data center construction market?
How many MW of power capacity is expected to reach the Latin America data center construction market by 2031?
Key Attributes:
Report Attribute
Details
No. of Pages
205
Forecast Period
2025 – 2031
Estimated Market Value (USD) in 2025
$3.01 Billion
Forecasted Market Value (USD) by 2031
$6.93 Billion
Compound Annual Growth Rate
14.9%
Regions Covered
Latin America
LATIN AMERICA DATA CENTER CONSTRUCTION VENDOR LANDSCAPE
Market Leaders
ABB
Alfa Laval
ASSA ABLOY
Axis Communications
Bosch
Bruno Generators
Caterpillar
Cummins
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
Key Data Center Investors
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
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
Cooling System
Cooling Techniques
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
For more information about this report visit https://www.researchandmarkets.com/r/dza90r
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