As the demand for cloud computing, AI, and digital transformation grows, Mexico is positioning itself as a global data center powerhouse. Favorable geopolitical conditions, a strong talent pool, and the growing importance of sustainability and energy efficiency are all contributing to this rapid exp Contact online >>
As the demand for cloud computing, AI, and digital transformation grows, Mexico is positioning itself as a global data center powerhouse. Favorable geopolitical conditions, a strong talent pool, and the growing importance of sustainability and energy efficiency are all contributing to this rapid expansion, according to Josue Ramírez, Founder, JRR IT Consulting.
Mexico has established itself as a strategic hub for the global data center industry, leveraging its geographic location, existing infrastructure, and skilled workforce. With a projected investment of more than US$1 billion by 2028, the country is positioning itself as a key player in the global market. "Mexico is undergoing a new industrial revolution through data center growth," said Ramírez, predicting a 5x increase in digital infrastructure in the coming years.
"Geopolitical tensions present challenges, but they also offer Mexico an opportunity to become a leader in digital infrastructure," explained Carlos Zamora, LATAM Datacenter GTM Lead, Microsoft Mexico. Mexico''s proximity to the United States, its moderated climate, and its tech talent pool make it a magnet for cloud providers and IT investments.
Leading tech companies, such as Meta, Microsoft, and Google, have unveiled plans for projects totaling over one gigawatt in capacity, with OpenAI even announcing intentions for a substantial 5-gigawatt facility. While these developments are not based in Mexico, they highlight the increasing global demand for data processing and storage capabilities, which presents an opportunity for Mexico to attract similar investments in its data center infrastructure.
"With these investments, energy availability becomes more critical, and it has been increasingly difficult to concentrate such vast amounts of energy in a single location, which has reopened discussions around nuclear energy as a potential solution," said Ramírez.
Liquid cooling technology, which is made up of sealed tubes filled with coolants that encase server systems, can reduce energy costs by up to 15% when positioned closer to server loads. "As AI workloads become more prevalent, energy-efficient cooling solutions are critical," Ramos noted. Additionally, considerations around data sovereignty and data gravity —where data is processed and consumed—must also inform data center investments.
Despite existing challenges, AI and machine learning (ML) are revolutionizing the management and efficiency of data centers, leading to a more optimistic outlook for the industry, says Dayana Gaxiola, Commercial Director Mexico, Equinix. "We have been using AI to optimize cooling, manage personnel workloads, and streamline cybersecurity," she noted.
Over the next five to 10 years, significant expansion of the data center industry is expected, driven by increased investment in infrastructure and technology, including the adoption of artificial intelligence (AI), blockchain, and edge computing. "This is just the beginning. Mexico has the potential to lead in the digital future, not just in Latin America, but globally," concluded Zamora.
"Major tech giants, including Meta, Microsoft, and Google, have unveiled ambitious projects that collectively exceed one gigawatt in capacity, signaling a substantial investment in Mexico''s data center infrastructure. Notably, OpenAI has announced plans for a groundbreaking 5-gigawatt facility. As the demand for data storage and processing capabilities surges, energy availability has become increasingly paramount."
Undeniably, the Latin American market already stands out as one of the most robust on the global stage—especially in the realm of data centers. In the current landscape, we observe growth propelled by factors such as rapid technological evolution, increased demand for IT infrastructure services, and the adoption of cloud computing, along with the progressive implementation of emerging technologies like artificial intelligence. Particularly noteworthy is the surge in the data center market in Mexico.
As organizations seek more scalability, security, and operational efficiency, robust and modern data center facilities have become increasingly urgent. Simultaneously, the geopolitical context favours decentralization and strategic distribution of data centers, ensuring redundancy and resilience across Latin America.
To support this process, ODATA, a company specialized in data center services, is taking solid steps to expand its presence in the Americas – explicitly strengthening its foothold in countries like Mexico to meet the growing demand for IT infrastructure and cloud services in the region. Learn more below:
The demand for data centers has significantly increased in recent years, driven by the growth of digital infrastructure fueled by the widespread adoption of cloud computing services. Meanwhile, limited storage available in data centers at the time constrained the advancement of virtualization in business operations.
Today, countries like Brazil, Colombia, and Mexico stand out in this context, indicating a significant expansion of data operations, especially to meet progressive demand, supported by a favourable business environment and government initiatives promoting digital evolution.
In this vein, Mordor Intelligence estimates that the data center market will reach $5.14 billion in 2024 in Latin America and is expected to reach $7.81 billion by 2029, advancing at a compound annual growth rate (CAGR) exceeding 8.71% during the forecast period (2024-2029). Analysts attribute this movement to adopting advanced technologies such as software-defined data centers, the Internet of Things (IoT), and disaster recovery solutions.
The construction of data centers is a highly complex task, requiring extensive planning for electrical, location, and mechanical requirements. This complexity arises because these structures perform critical mission tasks, and any imperfection in building design can be catastrophic, resulting in increased company expenses.
“Mexico is currently one of the main markets in the region, where ODATA is well-established and rooted to support its growth,” explains ODATA’s Latam CEO for Latin America, Ricardo Alário. “We already have a recognized identity, regional expertise, and great credibility with local suppliers, enabling us to grow safely and rapidly.”
The QR01 Data Center, the company’s first campus installed in the country, was strategically located in Querétaro and commenced operations in 2022 with 8.4 MW of installed capacity in its first phase. Now, it will be expanded to meet the growing needs of the data center market in Mexico. With advanced capacity and technology, the campus can reach up to 32 MW when fully developed, offering advanced solutions for hyperscale clients.
ODATA’s expansion in Mexico is a response to the country’s growing IT business development. In addition to expanding DC QR01, ODATA is initiating the construction of two new data centers in strategic areas.
The state of Guanajuato was chosen for the DC QR02 campus, with a capacity of 30 MW; meanwhile, the DC QR03 is being built in the city of El Marqués, located in the center of the country, 221 km from Mexico City. The latter will be the largest Data Center campus in Mexico, with an installed capacity of 150 MW. Both campuses will be dedicated to serving hyperscale clients.
“We are pleased with the success of developing our QR01 and QR02 facilities. This expansion of our first data center in Mexico illustrates the ongoing interest of clients in the market, the successful execution of our teams, and the long-term value of data center development in Querétaro,” stated Ricardo Alário.
The DC QR03 project is being developed similarly to the DC BG01, ODATA’s first campus in Colombia. At this campus, the company is also expanding its capacity and sees significant growth potential.
An exciting aspect of the design of their Colombian data center is that the site has separate buildings on the same campus with the same energy and connection. Additionally, each building is intended for a specific client with a single tenant, though not necessarily the same tenant.
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