Latin America Data Center Market: Nearly 2 Million Sq. Ft. of Space and 536 MW of Regional Capacity by 2031 - Arizton

Latin America's data center market is entering a period of significant capacity expansion, with the market expected to reach 2.13 million square feet by 2031, growing at a CAGR of 5.56%. By power capacity, the market is projected to reach 536 MW by 2031, registering a CAGR of 9.67%.
According to Arizton, the Latin America data center market witnessed USD 11.11 billion in investments in 2025 and is expected to reach USD 17.63 billion by 2031, growing at a CAGR of 8.01% during the forecast period.
Across Brazil, Mexico, Chile, Colombia, Argentina, and Peru, the outlook varies significantly in both projected capacity and construction economics. Brazil and Mexico lead by projected capacity, while Peru, Colombia, and Argentina have comparatively lower estimated construction costs. Chile combines a substantial capacity outlook with higher construction costs.

Dive Into the Data Behind the Growth Story → https://www.arizton.com/market-reports/latin-america-data-center-market-analysis

Brazil Sets the Regional Capacity Benchmark
Brazil is projected to host more than 780,000 square feet of data center space and over 195 MW of power capacity by 2031, giving it the largest projected footprint among the six markets.
The cost of developing data centers in Brazil ranges between $8.50 and $9.50 per watt. A renewable-heavy grid and a digital market large enough to support hyperscale development add to the country's attractiveness for large-scale data center projects.
With more than 190 MW of projected capacity, Brazil stands apart from the other markets in terms of development scale. The next consideration is how quickly the infrastructure required for this pipeline can be delivered, particularly across land, power, connectivity, and interconnection requirements.

Brazil: Explore the Capacity & Infrastructure Outlook →https://www.arizton.com/market-reports/brazil-data-center-market-investment-analysis-report-2025

Colombia Builds from a Competitive Cost Base
Colombia is projected to reach more than 230,000 square feet of data center space and 59 MW of power demand by 2031.
Construction costs were estimated at approximately $7-$8 million per MW in 2025, providing a comparatively competitive development cost within the six-country market.
At the same time, supply-chain friction, inflation, and rising interest rates are expected to place upward pressure on construction costs.
This gives Colombia a distinct position in the regional market: a growing capacity pipeline combined with a construction cost base that remains below several of the larger markets.

Colombia: Explore the Growth & Cost Outlook →https://www.arizton.com/market-reports/colombia-data-center-market

Mexico's Data Center Demand Gains from Nearshoring
Mexico is projected to reach approximately 502,000 square feet of data center space and 132 MW of power demand by 2031, making it the second-largest projected capacity market after Brazil.
The country's data center expansion is closely connected to nearshoring. As global supply chains increasingly realign toward North America, Mexico's digital infrastructure requirements are expanding alongside its industrial base.
The market is also associated with a relatively high construction cost range of approximately $10-$13 per watt, according to the original market comparison.
Mexico therefore combines one of the region's largest projected capacity requirements with a higher construction cost environment.

Mexico: See the Nearshoring & Data Center Outlook →https://www.arizton.com/market-reports/mexico-data-center-market-investment-analysis

Chile Combines Significant Capacity with Higher Construction Costs
Chile is projected to reach approximately 344,000 square feet of data center space and 82 MW of power demand by 2031.
Turner & Townsend's 2025 Data Center Cost Index places construction costs in Santiago at approximately $8.61 per watt, with inflation, supply-chain pressures, and interest rates expected to contribute to further increases.
Despite the higher construction cost, Chile remains a significant data center market in the regional outlook. Its projected capacity is substantially higher than that of Colombia, Argentina, and Peru.
The market therefore presents a different combination of higher construction costs and significant projected capacity.

Chile: Explore the Capacity & Cost Outlook → https://www.arizton.com/market-reports/chile-data-center-market

Argentina Develops from a Smaller Capacity Base
Argentina is projected to reach approximately 75,000 square feet of data center space and 18 MW of power demand by 2031.
Construction costs are estimated at approximately $7-$8 million per MW, placing Argentina within the lower cost range among the six markets.
Its projected footprint remains considerably smaller than those of Brazil, Mexico, Chile, and Colombia. However, the country's lower projected capacity is accompanied by comparatively competitive construction economics.
Argentina consequently occupies a different position within the regional outlook, with development taking place from a smaller capacity base.

Argentina: Explore the Capacity & Development Outlook →https://www.arizton.com/market-reports/argentina-data-center-market

Peru Stands Out on Construction Cost
Peru is projected to reach approximately 58,000 square feet of data center space and 15 MW of power demand by 2031.
Construction costs are estimated at approximately $6.5-$7.5 million per MW, the lowest range among the six markets in the original comparison.
The projected capacity is modest relative to Brazil, Mexico, and Chile, but the cost difference gives Peru a distinct position in the regional data center landscape.
Peru's combination of lower estimated construction costs and a developing capacity base makes it one of the more differentiated markets in the six-country comparison.

Peru: Explore the Cost & Capacity Outlook → https://www.arizton.com/market-reports/peru-data-center-market

Six Markets, Different Capacity and Cost Profiles
The six markets present markedly different development profiles:
• Brazil: More than 780,000 square feet and 195+ MW by 2031; construction costs of approximately $8.50-$9.50 per watt.
• Mexico: Approximately 502,000 square feet and 132 MW; construction costs of around $10-$13 per watt.
• Chile: Approximately 344,000 square feet and 82 MW; Santiago construction costs of approximately $8.61 per watt.
• Colombia: More than 230,000 square feet and 59 MW; construction costs of approximately $7-$8 million per MW.
• Argentina: Approximately 75,000 square feet and 18 MW; construction costs of around $7-$8 million per MW.
• Peru: Approximately 58,000 square feet and 15 MW; construction costs of approximately $6.5-$7.5 million per MW.

The figures point to a regional market where capacity scale and construction economics differ substantially by country. Brazil and Mexico carry the largest projected capacity requirements, while Peru, Colombia, and Argentina have comparatively lower construction-cost estimates. Chile combines a sizeable projected capacity with higher construction costs.

To Know More, Click: https://www.arizton.com/market-reports/latin-america-data-center-market-analysis

What the Six Markets Reveal
The six markets show that Latin America's data center growth is taking different forms across countries. Brazil and Mexico stand out for their larger projected capacity, while Chile combines strong capacity with higher construction costs. Colombia, Argentina, and Peru have smaller projected capacity but lower estimated construction costs.
This shows that capacity growth and construction costs are not the same across the region. Each market has a different balance between how much data center space is expected to be added and what it may cost to build that capacity.
The six countries therefore offer different market conditions, with both capacity and construction costs shaping their position in Latin America's data center market.

Explore the Six Country Data Center Markets: https://www.arizton.com/market-reports/category/flt1--dckb-investment-analysis-latin-america
Brazil | Mexico | Chile | Colombia | Argentina | Peru

Contact Us
Mail: enquiry@arizton.com
Contact Us: https://www.arizton.com/contact-us

About Us:
Founded in 2017, Arizton Advisory & Intelligence delivers data-driven market research and strategic consulting that empowers clients to make informed decisions and drive growth. Combining quantitative and qualitative insights, we provide in-depth analysis across industries including Agriculture, Consumer Goods, Technology, Automotive, Healthcare, Data Centers, and Logistics. Recognized by top-tier media, our expert team transforms complex market data into actionable strategies, helping clients anticipate trends, seize opportunities, and stay ahead of the competition.

This release was published on openPR.