Report : South & Central America Data Center Construction Market Forecast to 2030 - Regional Analysis - by Types of Construction (General Construction, Electrical Design, and Mechanical Design), Tier Standards (Tier 1 & Tier 2, Tier 3, and Tier 4), and Industry Verticals (BFSI, Government, Education, Manufacturing, Retail, Transportation, Media & Entertainment, and Others)
At 5.2% CAGR, South & Central America Data Center Construction Market is Projected to be Worth US$ 15,348.88 Million by 2030, says Business Market Insights
According to Business Market Insights' research, the South & Central America data center construction market was valued at US$ 10,262.76 million in 2022 and is expected to reach US$ 15,348.88 million by 2030, registering a CAGR of 5.2% from 2022 to 2030. Growing construction of tier 4 data centers and increasing adoption of green data centers are among the critical factors attributed to the South & Central America data center construction market expansion.
A Tier 4 data center is the highest certification in the Uptime Institute's system of segmenting data center performance into four tiers. This tier accounts for an expected uptime of 99.995% per year. Tier 4 data centers provide the highest level of uptime and fault tolerance, making them ideal for mission-critical applications such as financial services, healthcare, and telecommunications. As these sectors grow and digitalization continues, the demand for Tier 4 facilities rises, which boosts the number of new construction projects.
Additionally, Tier 4 data centers command premium pricing compared to lower tiers due to their advanced infrastructure and stringent operational requirements. This leads to higher profits for construction companies and data center operators, attracting significant investment for construction of new data centers. The construction of Tier 4 data centers requires expertise from various industries, including electrical and mechanical engineering, construction materials, and specialized IT equipment. This stimulates growth in these related industries, creating additional employment opportunities and economic benefits. The growing construction of Tier 4 data centers is expected to present a promising opportunity for the South & Central America data center construction market growth during the forecast period.
On the contrary, complexities in data center infrastructure and its establishment hamper the growth of South & Central America data center construction market.
Based on types of construction, the South & Central America data center construction market is segmented into general construction, electrical design, and mechanical design. The electrical design segment held 45.6% share of the South & Central America data center construction market in 2022, amassing US$ 4,679.88 million. It is projected to garner US$ 7,648.38 million by 2030 to expand at 6.3% CAGR during 2022-2030.
In terms of tier standards, the South & Central America data center construction market is segmented into tier 1 & tier 2, tier 3, and tier 4. The tier 3 segment held 49.9% share of the South & Central America data center construction market in 2022, amassing US$ 5,120.53 million. It is estimated to garner US$ 7,440.15 million by 2030 to expand at 4.8% CAGR during 2022-2030.
By industry verticals, the South & Central America data center construction market is segmented into IT & telecommunication, BFSI, government, education, manufacturing, retail, transportation, media & entertainment, and others. The IT & telecommunication segment held 28.8% share of South & Central America data center construction market in 2022, amassing US$ 2,953.95 million. It is predicted to garner US$ 4,887.97 million by 2030 to expand at 6.5% CAGR during 2022-2030.
Based on country, the South & Central America data center construction market is categorized into Brazil, Argentina, and the Rest of South & Central America. Brazil held 46.5% share of South & Central America data center construction market in 2022, amassing US$ 4,774.24 million. It is projected to garner US$ 7,663.90 million by 2030 to expand at 6.1% CAGR during 2022-2030.
Key players operating in the South & Central America data center construction market are Rittal GmbH & Co KG, Schneider Electric SE, DPR Construction Inc, AECOM, Turner Construction Co, and Eaton Corp Plc, among others.
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