Let $M_i$ be a arbitrary colection of $A$-modules and $S$ a multiplicative subset of $A$. I want to show that $$S^{-1}\left(\bigoplus_i M_i\right)\cong \bigoplus_i S^{-1}M_i$$ as $A$-modules and as $S^{-1}A$-modules. I know how to explicitly write an isomorphism between them but I want to do it using the universal properties to understand better how they work.
Here's what I've done:
Let $M=\bigoplus_i M_i$ with the canonical injections $\iota_i:M_i\to M$. Also let $\Phi:M\to S^{-1}M$ be the canonical morphism associated with the localization. Composing these morphisms we get $$\Phi\circ\iota_i:M_i\to S^{-1}M.$$ By the universal property of the localization, we obtain a unique morphism $$\overline{\Phi\circ\iota_i}:S^{-1}M_i\to S^{-1}M$$ such that $\overline{\Phi\circ\iota_i}\circ\Phi_i=\Phi\circ\iota_i$, where $\Phi_i:M_i\to S^{-1}M_i$ is the localization morphism.
Finally, by the universal property of the coproduct we obtain a morphism $$\bigoplus_i S^{-1}M_i\to S^{-1}M.$$ I think this morphism might be the desired isomorphism but I don't know how to prove it.
(Maybe a good idea would be to find its inverse but for it I need some kind of morphism $M\to M_i$, which is not available when the direct sum is infinite.)
Also, I know there are a couple questions here about similar things but they do either the explicit isomorphism or the finite case.
Edit: after @GreginGre commentaries, I have a morphism $S^{-1}M\to S^{-1}M_i$ but I don't know neither how to obtain a morphism $S^{-1}M\to\bigoplus S^{-1}M_i$ (since this is the wrong side for the universal property of coproducts) nor how to show that these two morphisms are inverses of each other.

Similarly as you have constructed the map, you can show that $\bigoplus_i S^{-1}M_i$ satisfies the universal property of $S^{-1}\bigoplus_i M$, which is just the combination of the universal property of localisation and the direct sum. This can be done 'by hand', which usually involves a large diagram, or as follows, if you are confident with functors:
We have the following sequence of natural equivalences of functors from the category of $S^{-1}A$-modules to the category of sets, given by various universal properties: $$\begin{align*} \hom_{S^{-1}A}(S^{-1}M,-) &= \hom_A(M,-|_A)\\ &=\prod\nolimits_i \hom_A(M_i,-|_A)\\ &=\prod\nolimits_i \hom_{S^{-1}A}(S^{-1}M_i,-|_A)\\ &= \hom_{S^{-1}A}\left(\bigoplus\nolimits_i S^{-1}M_i,-\right),\\ \end{align*}$$ where $-|_A$ means restriction of the $S^{-1}$-module structure to $A$.
This is the same as saying that their universal properties are equivalent; formally, one should invoke the Yoneda Lemma to conclude the claim. Tracing through the isomorphisms also tells you how to construct the isomorphisms if you plug in $S^{-1}M$ or $\bigoplus\nolimits_i S^{-1}M_i$ and look where the identity goes. And this shows that the map you've constructed is indeed the natural isomorphism.