Mexico Data Center Colocation Market Growth Insights, Size & Share, Colocation Demand Analysis Report (2026–2031)

MEXICO DATA CENTER COLOCATION MARKET SIZE

Mexico data center colocation market size was valued at USD 376 million in 2025 and is expected to reach USD 1.07 billion by 2031, growing at a CAGR of 19.06% during the forecast period. Mexico is one of the major colocation data center markets in Latin America. As of December 2025, there were around 45 operational colocation data centers across the country. Ascenty (Digital Realty), Equinix, HostDime, KIO Data Centers, México Telecom Partners (MTP), ODATA (Aligned Data Centers), and Scala Data Centers are some of the major colocation providers in Mexico.

In 2025, Querétaro emerged as Mexico’s leading data center development hub, attracting investments from both local and global data center operators. For instance, in September 2025, CloudHQ announced plans to develop approximately six data center facilities in Querétaro, representing an investment of around US$4.8 billion.

The Mexico market is expected to continue experiencing significant growth in the coming years. Major global cloud providers such as Alibaba Cloud, Amazon Web Services (AWS), Google Cloud, Huawei Cloud, Microsoft Azure, and Oracle Cloud continue to expand their presence. For instance, AWS announced the launch of AWS Mexico (Central), its new cloud region in Querétaro with three availability zones in January 2025.

As of October 2026, Mexico hosted around eight operational submarine cables – America Movil Submarine Cable System-1 (AMX-1), ARCOS, Bifrost, Gulf of California Cable, Ixchel, Lazaro Cardenas-Manzanillo Santiago Submarine Cable System (LCMSSCS), Pan-American Crossing (PAC), and TMX5and. The country continues to witness investment in around four more submarine cables, which are expected to become operational by 2025–2028.

MEXICO DATA CENTER COLOCATION MARKET INSIGHTS BY UTILIZED AREA

The Mexico data center colocation market by utilized area is expected to reach 3.27 million square feet by 2031. While Querétaro remains an established data center investment destination, investors are increasingly exploring other locations, including Mexico City, Monterrey, and Guanajuato. This geographic expansion creates opportunities for colocation providers, developers, and infrastructure suppliers to identify new sites and expand capacity beyond traditional data center hubs.

In 2025, industrial land prices in Mexico ranged from USD 75 to USD 280 per square meter, depending on the location. Querétaro remained attractive to data center investors, although rising demand for industrial land pushed prices up by approximately 60% over the previous four to five years. This increase was driven by foreign investment, strong land demand, and broader macroeconomic factors. For data center developers, rising land costs highlight the importance of evaluating emerging locations to manage development expenses and secure suitable sites for future capacity expansion.

MEXICO DATA CENTER COLOCATION MARKET INSIGHTS BY UTILIZED RACKS

The Mexico data center colocation market by utilized racks is expected to reach 83.74 thousand units by 2031. Data center operators in Mexico are increasingly adopting high-density racks, with power requirements ranging from 40 kW to 130 kW per rack. This shift creates opportunities for colocation providers, rack manufacturers, and infrastructure suppliers to offer solutions that support higher computing capacity and changing customer requirements.

In 2025, rack power density in Mexico's data centers ranged from 4 kW to 7 kW per rack. This is expected to increase with the growing demand for computing resources across AI, machine learning (ML), and cloud computing applications. The expansion of these workloads is driving the need for high-density rack solutions and advanced cooling systems to manage the heat generated by GPUs. Colocation providers and equipment suppliers can target this demand by offering rack infrastructure and cooling solutions designed for high-performance computing environments.

RECENT DEVELOPMENTS & NEWS IN THE MEXICO DATA CENTER COLOCATION MARKET

1. In October 2025, Equinix announced the launch of MO2, a new data center facility in Monterrey, Mexico, for an investment of around $250 million; the data center is spread across a colocation space of around 30,000 square feet.
2. In September 2025, KIO Data Centers announced a strategic alliance with Lonestar Space to develop a hybrid data storage ecosystem, integrating KIO Data Centers' terrestrial data center capabilities with Lonestar Space's data storage infrastructure to enhance data security and sovereignty.

MEXICO DATA CENTER COLOCATION MARKET TRENDS & DRIVERS

Rise in Artificial Intelligence, Automation, and Digitalization

The rapid adoption of artificial intelligence (AI), automation, and digitalization is emerging as a major driver of data center demand in Mexico, as enterprises are increasingly adopting AI-powered applications to enhance their operational efficiency and boost productivity.

Mexico is undergoing digital transformation owing to the expanding internet user base, driven by a combination of public and private sector efforts.

In 2025, we observe that the demand for AI technology is steadily increasing in Mexico. For instance, in December 2025, an AWS executive announced that around 495,000 companies in Mexico adopted AI in the last year, bringing the total number of businesses using AI to approximately two million, representing approximately 38% of the country’s business sector.

Improvement In Connectivity through Submarine Cables and Inland Internet

Mexico is strengthening its submarine and inland connectivity through infrastructure investments and strategic partnerships aimed at improving digital access and network capacity. These developments are supporting the growth of the data center market and creating opportunities for colocation providers, telecommunications companies, and infrastructure developers to expand their operations.

The expansion of submarine cable infrastructure is particularly important for the Mexico data center market, as it increases international bandwidth, improves network reliability, and reduces latency. Stronger connectivity also supports Mexico's position as a regional hub for global data flows and digital services across Latin America.

In September 2025, Telmex, a Mexican telecommunications firm, announced the launch of the TMX5 submarine cable with an investment of approximately USD 25 million. Such investments highlight the growing focus on strengthening Mexico's international connectivity, creating opportunities for data center operators and colocation providers to attract customers with high-bandwidth and low-latency connectivity requirements.

INDUSTRY RESTRAINTS

Power Supply Challenges and High Energy Costs

Throughout 2025, high energy costs were an undeniable issue in Mexico. Several factors contributed to the increase in power costs, including the country’s dependence on thermal power plants and the vulnerability of its energy infrastructure to climate-related disruptions.

In September 2025, Microsoft announced the temporary use of gas generators for power supply in one of its data center facilities in Querétaro due to delays in the power grid and insufficient electrical infrastructure.

Limited Skilled Workforce

The Mexico data center market has witnessed significant growth in recent years. The demand for experts in data engineering, cloud architecture, and AI is outpacing the supply of qualified talent in Mexico, akin to many other countries. The rapid pace of technological change has left traditional educational systems scrambling to keep up, resulting in a workforce that is ill-equipped to meet the demands of modern data centers.

In December 2025, AWS announced the expansion of its partnership with Mexico’s Economy Ministry to offer around 300 free courses in Spanish, aiming to train around 500,000 people by 2028.

MEXICO DATA CENTER COLOCATION MARKET SEGMENTATION INSIGHTS

INSIGHTS BY COLOCATION DEMAND

The cloud and IT sector accounted for 53% of colocation demand in 2025, supported by new capacity additions targeting cloud tenants and the expansion of local cloud regions. The growing need for scalable infrastructure is encouraging cloud service providers and IT companies to use multi-tenant colocation facilities to support their operations. This creates opportunities for colocation operators to attract cloud and IT customers by offering flexible capacity, reliable connectivity, and infrastructure suited to growing workload requirements.

INSIGHTS BY COLOCATION REVENUE

Existing colocation operators generated approximately USD 376 million in revenue in 2025, with retail colocation contributing around 60% and wholesale colocation accounting for the remaining 40%. Mexico is becoming a key data center investment market in Latin America, supported by the growing adoption of cloud-based services. Mexican enterprises and startups are increasingly using cloud platforms to advance digital transformation, improve operational efficiency, reduce costs, and adopt emerging technologies such as artificial intelligence (AI) and machine learning (ML).

Major cloud providers, including AWS, Google, and Microsoft, are also investing in the expansion of their cloud services in Mexico. These developments create opportunities for colocation operators to attract cloud providers, enterprises, and startups seeking scalable infrastructure. Providers can strengthen their market position by expanding capacity and offering flexible retail and wholesale colocation solutions to meet different customer requirements.

WHAT'S INCLUDED?

1. A transparent research methodology and insights on the colocation demand and supply aspects of the market.
2. Market size available in terms of utilized white floor area, IT power capacity, and racks.
3. Market size available in terms of Core & Shell Vs Installed Vs Utilized IT Power Capacity, along with the occupancy%.
4. The study of the existing Mexico data center market landscape, and insightful predictions about data center market size during the forecast period.
5. An analysis of the current and future colocation demand in Mexico by several industries.
6. The study on sustainability status in Mexico.
7. Analysis of current and future cloud operations in Mexico.
8. A snapshot of upcoming submarine cables in Mexico.
9. Snapshot of existing and upcoming third-party data center facilities in Mexico.
10. Facilities Covered (Existing): 45
11. Facilities Identified (Upcoming): 11
12. Coverage: 15+Cities
13. Existing vs. Upcoming (White Floor Area)
14. Existing vs. Upcoming (IT Load Capacity)
15. Data center colocation market in Mexico.
16. Colocation Market Revenue & Forecast (2025-2031)
17. Retail Colocation Revenue (2025-2031)
18. Wholesale Colocation Revenue (2025-2031)
19. Retail Colocation Pricing along with Add-ons
20. Wholesale Colocation Pricing along with the pricing trends.
21. An analysis of the latest trends, potential opportunities, growth restraints, and prospects for the colocation data center industry in Mexico.
22. Competitive landscape, including market share analysis by the colocation operators based on IT power capacity and revenue.
23. Vendor landscape of each existing and upcoming colocation operator based on existing/ upcoming count of data centers, white floor area, IT power capacity, and data center location.