Data centres in Mexico: overview

Mexico’s data centre market is experiencing rapid growth, with direct investments projected to exceed US$7 billion. Over the next five years, installed capacity is expected to surge from 81 MW to more than 1,000 MW, driven by both colocation and hyperscale (cloud service provider) developments.

Within Mexico, the key hotspot for data centres is Querétaro, a leading hub due to its stable climate, low seismic activity, reliable power grid and strong connectivity infrastructure, with players like Microsoft, Equinix, Oracle, Google and AWS investing in the region. Thanks to having local content in Queretaro, data centres can be more competitive with their pricing. Additionally, there are new emerging data centre hubs like Guanajuato, Jalisco, Durando, Merida and Yucatan.

The Mexican government has supported the national data centre industry thought regulatory reforms, and public-private partnerships that promote digital transformation. A growing concern is power availability, especially clean and consistent energy. In Mexico, digital demand has grown at a very fast pace, making it challenging for the energy infrastructure to keep up with the scaling demand.

Additionally, there is growing pressure for data centres to use clean and renewable energy sources, but regulatory shifts and changes in energy policy (the market is dominated by the CFE, which is the national utility company), mean that there is a challenge around brining enough energy to data centres. These issues are being addressed by the government and private companies alike, working together to overcome these critical complexities and ensure that Mexico’s data centre industry can keep growing in a stable fashion.

Overall, the investment landscape for data centres in Mexico is robust, with significant contributions from major tech companies and supportive government policies. The continued growth of this sector is expected to play a crucial role in Mexico's digital transformation and economic development.