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Srinwanti Kar
Senior Research Analyst


The South America modular data center market is in a rapid acceleration phase, driven by an unprecedented wave of hyperscale, colocation, and edge infrastructure investment across the continent. Our proprietary primary research and expert interview program places the market at USD 1.24 billion in 2025, advancing to USD 1.41 billion in 2026. We project the market to reach USD 2.63 billion by 2031, expanding at a 13.2% CAGR over the 2026–2031 forecast period. This growth materially outpaces the broader South America data center construction market, which our analysis sizes at USD 5.72 billion in 2026 growing to USD 8.88 billion by 2031 (9.18% CAGR). The modular format is capturing a rising share of total construction value because it directly resolves the region's three structural bottlenecks: compressed build timelines, grid interconnect delays, and skilled labor scarcity.
| Year | Market Size |
|---|---|
| 2025 | 1.240 B |
| 2026 | 1.404 B |
| 2027 | 1.589 B |
| 2028 | 1.799 B |
| 2029 | 2.036 B |
| 2030 | 2.305 B |
| 2031 | 2.609 B |
The competitive landscape is dynamic and moderately concentrated. Global colocation leaders and regional specialists—including Equinix, Digital Realty/Ascenty, Scala Data Centers, ODATA, EdgeUno, and NABIAX—are increasingly specifying prefabricated modules to meet hyperscale deadlines. Construction and engineering majors such as AECOM, Turner Construction, Jacobs Solutions, DPR Construction, and Fluor Corporation are integrating modular design into their South American delivery playbooks.
The South America modular data center market is shaped by a distinct set of demand accelerators and structural frictions.
The South America modular data center market is segmented by component, enterprise size, end-use, and data center type.
| Segment | Leading Category (2025) | Share / Metric | Fastest-Growing Category | CAGR (to 2031) |
|---|---|---|---|---|
| Component | Solutions (prefabricated modules, power, cooling, IT) | >80% | Services (consulting, integration, maintenance) | ~15% |
| Enterprise Size | Large Enterprises | Dominant | SMEs | ~14% |
| End-Use | IT & Telecom | Dominant | BFSI, Healthcare, Government | ~14% |
| Data Center Type | Colocation | 55.63% of construction value | Self-Built Hyperscalers | 11.76% |
| Tier Type | Tier 3 | 54.12% of construction value | Tier 4 | 11.24% |
| Mechanical Infrastructure | Cooling Systems | 40.86% revenue share | Servers & Storage | 9.94% |
| Electrical Infrastructure | Power Backup | 58.73% share | Power Distribution | 11.42% |
Brazil anchors the region, but Chile, Argentina, and Colombia are emerging as high-growth modular deployment hubs.
| Region | Market Share (%) |
|---|---|
| Brazil | 0.42% |
| Chile | 0.18% |
| Argentina | 0.12% |
| Colombia | 0.11% |
| Peru | 0.08% |
| Rest of South America | 0.09% |
| Country | Market Share (2025) | Key Growth Driver | Notable Projects / Investments |
|---|---|---|---|
| Brazil | ~42% | Largest digital economy; tax incentives; submarine cable density | AWS USD 1.8B expansion; V.tal USD 1B Fortaleza; Scala AI City proposal (4.7 GW) |
| Chile | ~18% | National Data Centers Plan; green energy; AWS region | AWS USD 4B Chile region; streamlined construction guides |
| Argentina | ~12% | RIGI framework; Buenos Aires fintech hub | Cirion 20 MW Buenos Aires site |
| Colombia | ~11% | Internet penetration >66%; e-commerce growth; carrier-neutral demand | Patria USD 1B platform targeting enterprise workloads |
| Peru | ~8% | Emerging edge deployments; connectivity upgrades | Submarine cable landings; Tier III expansions |
| Rest of South America | ~9% | Edge computing in smart cities and industrial sites | Modular edge pilots in mining and logistics |
The South America modular data center ecosystem comprises hyperscalers, colocation leaders, regional operators, and construction/engineering specialists.
Leading Operators and Colocation Providers:
Construction and Engineering Majors:
Technology and Infrastructure Suppliers:
The modular data center value chain in South America is evolving rapidly from import-dependent assembly to regionally integrated fabrication.
Procurement trends:
Several high-value white spaces remain underserved in the South America modular data center market.
South America's modular data center market remains structurally import-dependent for high-value components, but regional integration is accelerating.
All market sizing, segmentation, and forecasts presented in this report are derived from our proprietary primary research program, including interviews with hyperscale infrastructure leads, colocation operators, modular integrators, and construction executives across Brazil, Chile, Argentina, Colombia, and Peru. Data is triangulated with official multilateral sources and trade association benchmarks. All figures represent our independent estimates as of the report date.
| Aspects | Details |
|---|---|
| Study Period | 2020-2034 |
| Base Year | 2025 |
| Estimated Year | 2026 |
| Forecast Period | 2026-2034 |
| Historical Period | 2020-2025 |
| Growth Rate | CAGR of 13.2% from 2020-2034 |
| Segmentation |
|
Our proprietary research values the South America modular data center market at USD 1.24 billion in 2025, rising to USD 1.41 billion in 2026 and projected to reach USD 2.63 billion by 2031 at a 13.2% CAGR.
Brazil holds the largest share at approximately 42% in 2025, driven by AWS's USD 1.8 billion expansion, V.tal's USD 1 billion Fortaleza campus, and favorable tax incentives for qualifying data center investments.
Key drivers include hyperscale and colocation capex exceeding USD 8 billion through 2030, AI/GPU workloads pushing rack densities to 40–140 kW, edge computing demand for sub-1 ms latency, and government incentives like Chile's USD 2.5 billion National Data Centers Plan.
The services segment is the fastest-growing component as organizations seek specialized expertise for deployment and maintenance, while within data center types, self-built hyperscalers show the highest CAGR at 11.76% through 2031.
Leading operators include Equinix, Digital Realty/Ascenty, Scala Data Centers, ODATA, EdgeUno, and NABIAX, while construction and engineering majors such as AECOM, Turner Construction, Jacobs Solutions, DPR Construction, and Fluor Corporation support modular deployment.
Escalating power and real-estate costs in São Paulo and Santiago (-1.2% CAGR impact), long utility grid interconnect lead times (-0.9% CAGR impact), skilled labor shortages for complex MEP work, and data localization regulations such as Brazil's LGPD are the primary restraints.
Our rigorous research methodology combines multi-layered approaches with comprehensive quality assurance, ensuring precision, accuracy, and reliability in every market analysis.

| Stakeholder Role | Interview Share (%) |
|---|---|
| Infrastructure & Capacity Planning Directors | 30% |
| Data Center Operations & Facilities Managers | 25% |
| Construction & MEP Project Directors | 25% |
| Procurement & Sourcing Managers | 20% |

| Company Type | Representation (%) |
|---|---|
| Hyperscale & Colocation Operators | 30% |
| Modular Integrators & Prefabricated Module OEMs | 25% |
| Data Center Construction & MEP Contractors | 20% |
| Power & Cooling Equipment Suppliers | 15% |
| Enterprise IT & Edge Infrastructure Buyers | 10% |