Latin America is experiencing a significant surge in data center development, attracting major companies to invest in the area. The city of Queretaro, Mexico currently hosts 16 data centers with projections indicating growth to 37 by 2030. This expansion aligns with research suggesting that Latin America's data center construction market will grow at a CAGR of 9.25% from 2023-2029. This research also estimates that by 2029, the region's market in Latin America will reach $2.32 billion, solidifying it as a hot spot for data center development. However, SNHA, A Woolpert Company, knows that constructing data centers in this area isn't a straightforward process. There are many factors that companies must consider to propel their successful entrance or expansion into Latin America.

After managing data center projects for tech clients wanting to expand into Europe, we gained first-hand knowledge of effectively navigating a new market for data center development. And while design and construction practices differ from Europe to Latin America, we've identified several factors that apply across continents to data center construction in the Latin American market.

Same Language, Different Cultures

The first language in most Latin American countries is Spanish—but that doesn't mean the cultures are similar across the region. Every country has its own characteristics and knowing the specifics of the target expansion country is essential to project success.

One of the advantages of having a multicultural company is being able to tap into our own cultural backgrounds and experiences to help create designs that truly resonate with the culture, identity, and context of each client we work with, rather than imposing a copy-and-paste approach. Our goal is to create mindful designs that are autochthonous in nature and we do so through sustainable and innovative architectural design solutions.

By relying on local partners to provide the right information regarding regulations and best practices, we help our clients navigate the technical cultural differences in Latin American countries. This collaboration fosters strategic relationships, enabling us to navigate regulatory constraints and procurement processes while providing the level of detail needed for the various stages of the design and construction process.

Standards Vary Across Countries

Latin America has 33 countries, each with its own design and construction standards. Some countries' standards are more stringent than others. The important thing is to avoid generalizing by thinking every country in the region has the same processes and regulations for developing data centers.

Mexico and Chile, for example, have significant differences in design and construction standards. Chile is heavily involved in the construction process— there is a high level of detail expected in design documentation from architects and engineers, including time spent on-site and with the contractors during construction. Mexico's standards, on the other hand, are strict but not as stringent. Additionally, the equipment and architectural building systems used to build data centers in the two countries differ. Chile is a Latin American country that's further from big manufacturers, so data centers often have to rely on material that's available in the country. Also, in certain cases, architectural systems are custom and based on architectural drawings rather than premanufactured assemblies or commercial proprietary products. Mexico, however, is closer to North America, making it easier and more cost-effective to get almost any kind of equipment or system directly from American manufacturers.

These differences only scratch the surface, but they show the importance of approaching each Latin American country with an open mind to understand the limitations and constraints of each local market. Only by doing so will you efficiently design and construct a data center that complies with a country’s processes and regulations.

Realistic Project Schedules

Project schedules are influenced by several factors, including embedded supply chain and transportation circumstances as well as the design team’s involvement and understanding of the scope of services. In the U.S., a lower level of detail is expected of designers as more items fall within the contractor’s scope. Conversely, in Latin American countries, designers must deeply immerse themselves in the details of project development, which can extend the schedule.

These differences mean it's imperative to create a realistic schedule for the design and construction of your data center. Timing will affect nearly every aspect of your initiative, including product availability in localized supply chains, daily workflows, and deadlines for final documents. So, developing schedules that account for local factors will boost the chances of project success and support the architects with localized expertise to assist you as effectively as possible.

We work strategically and collaboratively with our local partners to achieve accurate construction and design delivery. Each partner is carefully selected based on cultural fit, knowledge, and experience. Our strength lies not only in our knowledge but in our ability to adapt and expand in Latin American markets by leveraging our global experience.