|【英語タイトル】Latin America Data Center Construction Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)|
❖ レポートの概要 ❖
The Latin America Data Center Construction Market is expected to register a CAGR of 7.52% during the forecast period, from 2021 to 2026. The growth of advanced technologies such as software-defined data centers, the internet of things (IoT), and disaster recovery fed the demand for the construction of data centers in Latin America.
- Data center construction is a very complex task, which requires extensive planning of electrical, location and mechanical requirements. Moreover, the data centers carry out mission tasks due to which any imperfection in power management to building design could be catastrophic and could result in increased cost to the companies.
- The need for data centers has increased in the recent years, with 2017 being the significant year due to the high adoption of cloud services. During that period, widespread expansion of the cloud services was restrained by the limited storage available at the datacenters.
- Subsequently, the concept of hyperscale datacenters and colocation data centers emerged. The construction of hyperscale data centers and colocations data centers is expected to drive the demand for data center construction in the future.
- The rapid proliferation of mobile devices and high-speed broadband connectivity is attributing to the growth of the data center construction market in the Latin American region. Moreover, the increasing demand for connected devices and the introduction of new technologies, such as IoT, cloud-based services, and big data analytics is boosting the demand for new facilities in the region.
- The increasing investment in building new data centers in Latin American countries, such as Brazil, is expected to drive the market growth over the forecast period. In August 2019, Brazilian company AMT (Agência Moderna Tecnologia), selected CenturyLink to meet its growing demand for cloud services as part of business expansion with management systems provider Sankhya for data center services in Rio de Janerio. The CenturyLink modular data center in Rio de Janeiro provides customers with a processing environment designed to offer high levels of availability, improved quality, and greater access speeds to the rest of the world.
- The investments in datacenters and advanced information processing structures have accelerated in Latin America, despite the COVID-19 crisis. Various companies in the market have announced their moves for construction of data centers.
Key Market Trends
IT and Telecommunications Segment to Hold a Significant Share of the Market
- The region is undergoing some massive investment from IT & Telecom providers. For instance, Digital Colony Management has announced the establishment of Scala Data Centres, a hyperscale data center platform headquartered in Sao Paulo, Brazil. Scala is Digital Colony Management, LLC’s second investment in Brazil and fourth in Latin America, after acquiring Highline do Brasil in 2019, Andean Telecom Partners in 2017 and Mexico Towers Partners in 2013 through its subsidiary Digital Bridge.
- The massive adoption of cloud computing, IoT services, and big data, along with the growth in social networking and the need for online video services, has aided telecommunication service providers in the region to establish their internet backbone. In 2019, Google docked its private submarine cable, Curie, in Valparaiso, Chile. The cable is directly joined to the Equinix LA4 data center in Los Angeles, California. About 10 submarine cable projects anticipated to be operational by 2021, will yield high data center investments year-over-year.
- The data centers in Latin America are being designed to withstand high rack density. The increasing utilization of IT infrastructure has increased the rack power density to an average of 4–6 kW among data centers in Latin America. The growing need for solutions such as high-performance computing (HPC) and virtualization will continue to grow the rack power density between 8-10 kW during the forecast period, consequently driving the data center construction market in Latin America.
- Owing to mergers and acquisitions, the increase in the market share of IT & Telecom companies are also rising sharply in Latin America. For instance, in 2019, Digital Colony acquired Brazilian telecoms infrastructure solutions provider Highline from Pátria Investments. In April 2020, it also funded Vantage Data Centers’ acquisition of Next Generation Data, and in March, it closed its USD 8.2 billion acquisition of Zayo.
Brazil is expected to Dominate Market Share
- The growing cloud computing (further fuelled due to COVID-19), increasing penetration of foreign cloud vendors, government regulations for local data security, and increasing investment by domestic players are some of the major factors driving the demand for data centers in the country. There are almost 120 data centers in the country.
- The demand for low latency and high performance, along with the recent work from home culture due to nationwide lockdown, is mainly accelerating the adoption of data centers located near customers and businesses to enable hybrid multi-cloud ecosystems.
- According to the Brazilian Software Association (ABES), Brazil is Latin America’s largest technology ecosystem. Also, according to the data published by Equinix, the IT investment in Latin America witnessed a 1.3% growth in 2019 and is expected an upswing of 4-5% in 2020. And in 2020, Brazilians’ investment in the IT industry and telecom sector will be around USD 40-50 billion, respectively. This is expected to provide a massive boost to the cloud computing market, and hence in the data center market too.
- The Brazilian government is also playing a significant role in the development of local data center infrastructure. According to the government, the country’s General Data Protection Act (LGPD) will implement from August 2020, which is expected to force many enterprises in the country to migrate their cloud access to private networks and updating their encryption services to extend user data protection.
- Furthermore, the recent COVID-19 has put high pressure on end-user companies to support remote working and are fast-tracking their cloud and digitization journeys. Companies like IBM and Microsoft claim that this will boost the data center market in the country as data center expansion enables organizations and government institutions to uphold data sovereignty by keeping data within their legal basis.
- As companies in Brazil look to gain greater control of their data in the face of upcoming tighter compliance and protection regulations, data center vendors, like IBM, are targeting customers through providing cloud capabilities along with a hybrid multi-cloud environment.
The Latin America Data Center Construction Market is fragmented, and the competitive rivalry is high. The key players in this market are AECOM, Cisco Systems, Inc., Corgan Inc., DPR Construction, Holder Construction Company, and Dell Technologies Inc., among others. Sustainable competing advantage can be accomplished through innovation in this market, owing to the increasing need for differentiated products for multiple applications. Through research & development, mergers & acquisitions, and strategic partnerships, they have been able to gain a stronger hold in the market. These players are continually expanding their presence in the market by offering the most advanced technologies, thereby boosting their revenues in the market.
- June 2020 – Digital Realty and Ascenty to build two data centers in Queretaro, Mexico. The companies will build two facilities in the state of Queretaro, Mexico, with the initial phases scheduled for 2021, and a full buildout capacity of 36MW. Ascenty is a joint venture by Digital and investment company Brookfield Infrastructure that focuses on Latin American data centers and fiber connectivity.
- January 2020 – Equinix acquired 3 data centers in Mexico from Axtel SAB de CV with USD 175 million deal. The acquisition will help Equinix to provide it, customer, to move their I.T. operations and latency-sensitive data to the digital edge, closer to where content is created and consumed.
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1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Growth in Network Connectivity and Increased Adoption of Digital Transformation Related Technologies in the Region
4.2.2 Favorabletax Incentive Structure Introduced by Local Governments has Led to the Higher Participation from International Players
4.2.3 Ongoing Consolidation Efforts by Major Data Center Construction Companies to Aid their Expansion Activities
4.2.4 Growing Awareness on Modular Deployments and Increasing Rack Density
4.3 MarketChallenges (Cost andinfrastructuralconcerns
4.3.1 Cost and Infrastructural Concerns Continue to be a Concern
4.3.2 Workforce-related Challenges
4.4 Market Opportunities
4.4.1 Technological Advancements in Power, Cooling & Energy Segments to Drive Construction Activity
4.4.2 Growing Demand for Edge Data Center Deployments
4.4.3 Brazil & Mexico to Continue their Emergence as the Largest Markets in the Region
4.5 Impact of COVID-19 on the Data center Construction Industry
4.6 Industry Attractiveness –Porter’s Five Forces Analysis
4.6.1 Bargaining Power of Suppliers
4.6.2 Bargaining Power of Consumers
4.6.3 Threat of New Entrants
4.6.4 Threat of Substitutes
4.6.5 Intensity of Competitive Rivalry
4.7 Technology Snapshot
5 MARKET SEGMENTATION
5.1 Infrastructure Type
5.1.1 Electrical Infrastructure
22.214.171.124 UPS Systems
126.96.36.199 Others Electrical Infrastructure
5.1.2 Mechanical Infrastructure
188.8.131.52 Cooling Systems
184.108.40.206 Other Mechanical Infrastructure
5.1.3 General Construction
5.2 Tier Type
5.2.1 Tier-I and II
5.3 Size of Enterprise
5.3.1 Small- and Medium-scale Enterprise
5.3.2 Large-scale Enterprise
5.4 End User
5.4.1 Banking, Financial Services, and Insurance
5.4.2 IT and Telecommunications
5.4.3 Government and Defense
5.4.5 Other End Users
5.5.4 Rest of Latin America
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Turner Construction Co.
6.1.2 DPR Construction Inc.
6.1.3 Fortis Construction
6.1.4 ZFB Group
6.1.5 Aceco TI
6.1.6 AECOM Limited
6.1.7 Constructora Sudamericana S.A
6.1.8 HostDime Brasil
6.1.9 CyrusOne Inc.
6.1.10 RITTAL Sistemas Eletromecânicos Ltda. (Rittal GmbH & Co. KG)
6.1.12 Delta Group
6.1.13 Ascenty Data Centers E Telecomunicacoes
6.1.14 Equnix Inc.
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS