Mexico Data Center Market - Investment Analysis & Growth Opportunities 2024–2029

MARKET INSIGHTS

The Mexico data center market size will witness investments of USD 1.32 billion by 2029, growing at a CAGR of 8.60% during the forecast period. Mexico is the gateway for data transfer between the U.S. and other Latin American countries. In Latin America, Mexico is the second largest country in the continuous development and expansion of data centers, propelled by governmental efforts towards digitalization, robust network infrastructure, and a thriving import-export sector.

Mexican government initiated the 'smart city' model, leveraging HCLTech IoTWoRKS and Intel technologies to implement the Intelligent Secure Edge (ISE) for Smart Cities; integrating AI surveillance and an IoT ecosystem are some solutions to combat the rise in cyber threats. Also, government sectors and some private and public organizations are joining hands to provide skill training to increase the workforce for various industries facing a stringent workforce. For instance, in November 2023, the Mexican government and AWS collaborated to establish the “Empowering Mexican Talent in the Cloud” program to provide an innovative training program for more than 130,000 Mexicans.

Microsoft, Google, Alibaba, Huawei Technologies, AWS, and Oracle are prominent cloud service providers in the Mexico data center market. In April 2023, AWS announced the opening of its new AWS Direct Connect location, located in the KIO Networks data center in Querétaro, Mexico. Further, AT&T, América Móvil’s Telcel, and Ericcson are some major telecom operators involved in deploying 5G network services across the country. By 2030, it is expected that Movistar, along with AT&T’s network infrastructure, plans to launch the 5G network services in 30 new cities.

KEY HIGHLIGHTS

• Querétaro and Mexico City have emerged as top destinations for data center investments from foreign and local data center providers in the Mexico data center market. The country has several special economic zones that provide multiple benefits to investors, such as tax exemptions on infrastructure, land power & others, and support for local labor recruitment.
• Mexico has seven existing submarine cables that connect it with other Latin American countries and the US. Some of the upcoming submarine cables in the country include Bifrost, Gold Data-1 (GD-1)/Liberty Networks-1 (LN-1), Caribbean Express (CX), TAM-1, and TIKAL-AMX3.
• Mexico stands at the forefront of renewable energy, harnessing hydropower, solar, wind, and geothermal power and the ability to develop green hydrogen and energy storage projects. The country's government has set the ambitious goal to reach 35% renewable energy by 2024, with a target of 50% by 2050.
• Companies in Mexico are aggressive in adopting AI, with a particular emphasis on ethics, cybersecurity, and data protection. According to Cisco Systems, around 75% of companies in Mexico are keen to adopt AI technologies.

WHY SHOULD YOU BUY THIS RESEARCH?

• Market size available in the investment, area, power capacity, and Mexico colocation market revenue.
• An assessment of the data center investment in Mexico by colocation, hyperscale, and enterprise operators.
• Investments in the area (square feet) and power capacity (MW) across cities in the country.
• A detailed study of the existing Mexico data center market landscape, an in-depth market analysis, and insightful predictions about market size during the forecast period.
• Snapshot of existing and upcoming third-party data center facilities in Mexico
  • Facilities Covered (Existing): 37
  • Facilities Identified (Upcoming): 06
  • Coverage: 15+ Cities
  • Existing vs. Upcoming (Area)
  • Existing vs. Upcoming (IT Load Capacity)
• Data Center Colocation Market in Mexico
  • Market Revenue & Forecast (2023-2029)
  • Retail Colocation Revenue
• The Mexico data center market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
• A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the market.
• Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
• A transparent research methodology and the analysis of the demand and supply aspects of the industry.

VENDOR LANDSCAPE

• Ascenty (Digital Realty), Equinix, HostDime, Kio Networks, ODATA (Aligned Data Centers), and Scala Data Centers are the major colocation service providers operating data centers across the Mexico data center market by adding more than 100 MW of power capacity.
• In 2023, the Mexico data center market witnessed data center investments from Ascenty (Digital Realty), Equinix, CloudHQ, KIO Networks, ODATA (Aligned Data Centers), and Scala Data Centers in more than ten data center facilities across the country. In addition, Mexico also witnessed investments from new entrants such as CloudHQ, EdgeConneX, and Layer 9 Data Centres.
• Some state governments provided the land in Mexico to develop data center facilities. For instance, in September 2023, Mexico's Querétaro state approved the trust and allotted an area of around 5.5 million square feet to develop CloudHQ’s Colón data center project.
• The increase in hyperscale cloud operators in Mexico’s data center market is propelling the demand for wholesale colocation in 2023; wholesale revenue share is expected to continue to increase by 2029. For instance, in March 2023, Google announced plans for a second cloud region, which will be housed in an América Móvil-owned Telmex data center.

EXISTING VS. UPCOMING DATA CENTERS

• Existing Facilities in the Region (Area and Power Capacity)
  • Querétaro
  • Other Cities
• List of Upcoming Facilities in the region (Area and Power Capacity)

REPORT COVERAGE:

This report analyses the Mexico data center market share. It elaboratively analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, general construction, and tier standards. It discusses market sizing and investment estimation for different segments. The segmentation includes:

• IT Infrastructure
  • Servers
  • Storage Systems
  • Network Infrastructure
• Electrical Infrastructure
  • UPS Systems
  • Generators
  • Switches & Switchgear
  • PDUs
  • Other Electrical Infrastructure
• Mechanical Infrastructure
  • Cooling Systems
  • Racks
  • Other Mechanical Infrastructure
• Cooling Systems
  • CRAC and CRAH Units
  • Chillers Units
  • Cooling Towers, Condensers, and Dry Coolers
  • Economizers & Evaporative Coolers
  • Other Cooling Units
• General Construction
  • Core & Shell Development
  • Installation & Commissioning Services
  • Engineering & Building Design
  • Fire Detection & Suppression
  • Physical Security
  • Data Center Infrastructure Management (DCIM)
• Tier Standard
  • Tier I & Tier II
  • Tier III
  • Tier IV

VENDOR LANDSCAPE

• IT Infrastructure Providers: Arista Networks, Broadcom, Cisco Systems, Dell Technologies, HPE, Huawei Technologies, IBM, Juniper Networks, Lenovo, NetApp, Oracle, Pure Storage, and Super Micro Computer.
• Data Center Construction Contractors & Sub-Contractors: AECOM, Aceco TI, Fluor Corporation, Gensler, KMD Architects, Soben, Syska Hennessey Group, The Weitz Company, Turner Construction.
• Support Infrastructure Providers: ABB, Alfa Laval, Axis Communications, Bosch Security and Safety Systems, Caterpillar, Cummins, Daikin Applied, Delta Electronics, Detroit Diesel, Eaton, Honeywell International, Johnson Controls, Legrand, Munters, Mitsubishi Electric, Piller Power Systems, Panduit, Rittal, Rolls Royce, Schneider Electric, Siemens, STULZ, Vertiv.
• Data Center Investors: Ascenty (Digital Realty), Equinix, HostDime, Kio Networks, MTP, Microsoft, ODATA (Aligned Data Centers), Scala Data Centers.
• New Entrants: CloudHQ, EdgeConneX, and Layer 9 Data Centres.