MARKET INSIGHTS

The Mexico data center market size will witness investments of USD 1.15 billion by 2028, growing at a CAGR of 9.75% during the forecast period. The market is characterized by international and local players offering various services such as colocation, managed-to-host, and cloud services. The Mexico data center market is supported by a favorable regulatory environment, stable political climate, and cool climate, which are ideal conditions for data center operations.

In terms of growth, the Internet of Things (IoT), cloud computing, Artificial Intelligence (AI), and big data are driving demand for data storage and processing capabilities in Mexico, leading to a rise in the construction of new facilities and expansion of existing ones. Colocation operators like Layer 9 Data Centers, Ascenty (Digital Realty), HostDime, CloudHQ, Equinix, Scala Data centers, and ODATA are investing in the Mexico data center market. Further, the government aims to procure 50% of its electricity from renewable energy by 2050.

In terms of 5G connectivity, Telcel and AT&T are increasing their 5G reach across the country. Telcel and AT&T have planned to cover 120 and 25 additional cities by the end of 2022, respectively. The market will likely grow as demand for data storage and processing capabilities remain strong in the coming years. Moreover, the industry is expected to attract increased investment, leading to the development of new facilities and the expansion of existing ones.

KEY HIGHLIGHTS

• Mexico has around 32 operational colocation data centers. Most colocation data centers are being developed according to Tier III standards, and the country has the presence of global data centers operator like Equinix and others.
• The Mexico data center market has witnessed significant growth in recent years due to rising demand for cloud computing, big data analytics, and IoT.
• The major factors driving the Mexico data center market are cloud adoption, implementation of AI, Internet of Things (IoT), big data, digital transformation, 5G network commercial deployment, gaming culture, and smart city initiatives.
• In Mexico, industries such as cloud, telecom, BFSI, and healthcare, and the government shifting its workloads to the cloud, are the major demand driver for colocation services.
• Queretaro is the primary location for data center development in Mexico. However, companies are also expanding in regions like Bajio and Guadalajara, chosen by Layer 9 Data Centers and HostDime.

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 industry landscape, an in-depth industry analysis, and insightful predictions about industry size during the forecast period.
• Snapshot of existing and upcoming third-party data center facilities in Mexico
  • Facilities Covered (Existing): 32
  • Facilities Identified (Upcoming): 4
  • Coverage: 16 Cities
  • Existing vs. Upcoming (Area)
  • Existing vs. Upcoming (IT Load Capacity)
• Data center colocation market in Mexico
  • Market Revenue & Forecast (2022-2028)
  • Retail Colocation Pricing
  • Wholesale Colocation Pricing
• Mexico's 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 industry.
• 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

• Some major investors in Mexico's data center market are Ascenty (Digital Realty), Layer 9 Data Centers, Equinix, Scala Data Centers, and HostDime.
• Mexico witnessed investments from Ascenty, Equinix, ODATA, HostDime, Scala Data Centers, and Layer 9 Data Centers in around eight facilities likely to be operational during the forecast period.
• In Mexico, in 2023, Equinix will be involved in expanding the data center MX3x phase I facility. The company also planned to develop the third data center MX3x facility, which will be operational by Q4 2022.
• ODATA invested in developing its first facility, QR01, in Querétaro, Mexico. The company also planned for the pipeline of projects to be operational in the next four to five years.
• The entry of hyperscale cloud companies will propel the Mexico data center market growth. For example, Google and Oracle are planning to set up a cloud region in the country.

EXISTING VS. UPCOMING DATA CENTERS

• Existing Facilities in the region (Area and Power Capacity)
  • Querétaro
  • Other Cities (Jalisco, Mexico City, Monterrey, and Cancún) 
• 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
  • Transfer Switches & Switchgears
  • PDUs
  • Other Electrical Infrastructure
• Mechanical Infrastructure
  • Cooling Systems
  • Racks
  • Other Mechanical Infrastructure
• Cooling Systems
  • CRAC & CRAH Units
  • Chiller Units
  • Cooling Towers, Condensers & Dry Coolers
  • Economizers & Evaporative Coolers
  • Other Cooling Units
• General Construction
  • Core & Shell Development
  • Installation & commissioning Services
  • Engineering & Building Design
  • Fire Detection & Suppression
  • Physical Security
  • 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, Syska Hennessey Group, and Turner Construction.
• Support Infrastructure Providers: ABB, Axis Communications, Bosch Security Systems, Caterpillar, Cummins, Daikin Applied, Delta Electronics, Detroit Diesel, Eaton, Generac Power Systems, Legrand, Mitsubishi Electric, Munters, Piller Power Systems, Panduit, Rittal, Rolls-Royce, Schneider Electric, Siemens, STULZ, Vertiv.
• Data Center Investors: Ascenty, CloudHQ, Equinix, HostDime, ODATA, and Scala Data Centers.