Research reveals market’s scope for CAGR of 8.60% from 2023-2029.
The Mexico data center market is expected to reach a value of $1.319 billion by 2029 from $804 million in 2023 – growing at a CAGR of 8.60% from 2023-2029
That’s the projection pitched in a report released by ResearchAndMarkets.com analysing the Mexico data center market share and upcoming facilities and investments in IT, electrical, mechanical infrastructure, general construction and tier standards.
The report also outlines market sizing and investment estimation for different segments. Queretaro and Mexico City emerge as top destinations for data center investments from foreign and local data center providers in the Mexico data center market.
The report references Mexico’s several special economic zones that provide multiple benefits to investors, such as tax exemptions on infrastructure, land power and others – and support for local labor recruitment.
Also referenced are Mexico’s seven existing submarine cables that connect it with other LATAM 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.
The report says 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 identified in the report as ‘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.
Ascenty (Digital Realty), Equinix, HostDime, Kio Networks, ODATA (Aligned Data centers) and Scala Data centers are referenced in the report as 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 saw 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 centers.
ResearchAndMarkets.com Mexico data center market report – key takeaways
- The Mexican data center market was estimated to be valued at $804 million in 2023.
- The growth rate of the Mexican data center market is 8.6% – with an estimated value of $1319 billion by 2029.
- Key companies in the Mexican data center market include Arista Networks, Broadcom, Cisco Systems, Dell Technologies, HPE, Huawei Technologies, IBM, Juniper Networks, Lenovo and NetApp.
