Latin America Data Center Construction Industry Outlook 2026-2031 with ABB, Alfa Laval, ASSA ABLOY, Axis Communications, Bosch, Bruno Generators, Caterpillar, Cummins Leading

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:

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

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