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Mexico Data Center Market Size

The Mexico Data Center Market is projected to experience significant growth in its capacity and revenue over the forecast period. The expansion is driven by the increasing demand for advanced data center facilities, particularly tier 3 and tier 4, which offer superior redundancy and reliability. This demand is fueled by the rise of business continuity services and the needs of conglomerates, government organizations, and major corporations with critical operational requirements. The market's growth is further supported by the entry of international corporations and the proliferation of enterprises within the country, leading to a potential increase in hyperscale colocation adoption, especially in the cloud and telecom sectors.

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Market Size of mexico data center Industry

Mexico Data Center Market Summary
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svg icon Study Period 2017 - 2029
svg icon Market Volume (2024) 357.8 MW
svg icon Market Volume (2029) 480.4 MW
svg icon Largest Share by Tier Type Tier 4
svg icon CAGR (2024 - 2029) 6.07 %
svg icon Fastest Growing by Tier Type Tier 4
svg icon Market Concentration High

Major Players
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*Disclaimer: Major Players sorted in no particular order

Key Players

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Mexico Data Center Market Analysis

The Mexico Data Center Market size is estimated at 357.8 MW in 2024, and is expected to reach 480.4 MW by 2029, growing at a CAGR of 6.07%. Further, the market is expected to generate colocation revenue of USD 4,590.2 Million in 2024 and is projected to reach USD 6,655.9 Million by 2029, growing at a CAGR of 7.71% during the forecast period (2024-2029).

USD 4,590.23 Million

Market Size in 2024

USD 6,655.8 Million

Market Size in 2029

8.8%

CAGR (2017-2023)

7.7%

CAGR (2024-2029)

IT Load Capacity

357.82 MW

Value, IT Load Capacity, 2024

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The IT load capacity of the data center market will have steady growth and is expected to reach 480.3 MW by 2029. Mexico is witnessing a positive growth of smartphones in the country is expected to increase market of data centers.

Total Raised Floor Space

Sq. Ft. 1.78 M

Volume, Raised Floor Space, 2024

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The total raised floor area of the country is expected to increase to 2.4 million sq. ft by 2029. Ongoing construction of a center facility by Hostdime and other operators would increase DC facilities in the country.

Installed Racks

89,455

Volume, Installed Racks, 2024

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The number of installed racks is expected to reach 120,094 units by 2029. Querétaro is expected to house the maximum number of racks by 2029. Expansion of fiber connectivity across the country would increase the demand for DC facilities.

# of DC Operators & DC Facilities

19 and 35

Volume, DC Facilities, 2024

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There are 35 colocation data center facilities in Mexico. Querétaro and Guadalajara are the major hotspots in the country. The increasing adoption of the cloud services is among the factors boosting the number of data centers in the nation.

Leading Market Player

45.3%

Market Share, Telmex (América Móvil), 2023

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Telmex (América Móvil) has five data center facilities in Mexico. These facilities have a 477,744 sq. ft net rentable capacity and an operating capacity of 144.02 MW IT load capacity, with more than 23,887 units of racks.

Tier 1&2 data center accounted for majority share in terms of volume in 2023, and is expected to dominate through out the forecasted period

  • The tier 4 data center segment is expected to reach an IT load capacity of 204.30 MW in 2023. It is further projected to exhibit a CAGR of 9.53%, surpassing an IT load capacity of 352.76 MW by 2029.
  • While tier 1 and 2 facilities must be increasingly equipped to meet the growing demand for uninterrupted services from businesses, they are losing favor. Due to the increase of business continuity services available around the clock, tier 3 and 4 data centers have gained popularity. This is due to the increasing number of conglomerates. A tier 3 data center is equipped with several channels for electricity and cooling, as well as methods for updating and maintaining it without bringing it offline. It has an annual downtime of 1.6 hours and an expected uptime of 99.982%. Because of the significantly better redundancy protections provided, small and medium-sized businesses typically choose to employ at least a Tier III-rated system.
  • A tier 4 data center includes redundancy for every component and is fault-resistant. Clients should not face more than 26.3 minutes of downtime a year, according to a level 4 facility. Government organizations and major corporations with mission-critical servers and high customer or business demands typically use a tier 4 facility. The growth of data centers in Mexico with the best infrastructure certifications is facilitated by the entry of significant international corporations and an increase in the country's enterprises. Throughout the forecast period, the market is anticipated to demonstrate potential growth, which may lead to hyperscale colocation adoption by significant end users in the cloud and telecom industries. The popularity of computer solutions in Mexico is a key encouraging element for the development of tier 4 facilities.
Mexico Data Center Market

Mexico Data Center Industry Segmentation

Guadalajara, Querétaro are covered as segments by Hotspot. Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption.

  • The tier 4 data center segment is expected to reach an IT load capacity of 204.30 MW in 2023. It is further projected to exhibit a CAGR of 9.53%, surpassing an IT load capacity of 352.76 MW by 2029.
  • While tier 1 and 2 facilities must be increasingly equipped to meet the growing demand for uninterrupted services from businesses, they are losing favor. Due to the increase of business continuity services available around the clock, tier 3 and 4 data centers have gained popularity. This is due to the increasing number of conglomerates. A tier 3 data center is equipped with several channels for electricity and cooling, as well as methods for updating and maintaining it without bringing it offline. It has an annual downtime of 1.6 hours and an expected uptime of 99.982%. Because of the significantly better redundancy protections provided, small and medium-sized businesses typically choose to employ at least a Tier III-rated system.
  • A tier 4 data center includes redundancy for every component and is fault-resistant. Clients should not face more than 26.3 minutes of downtime a year, according to a level 4 facility. Government organizations and major corporations with mission-critical servers and high customer or business demands typically use a tier 4 facility. The growth of data centers in Mexico with the best infrastructure certifications is facilitated by the entry of significant international corporations and an increase in the country's enterprises. Throughout the forecast period, the market is anticipated to demonstrate potential growth, which may lead to hyperscale colocation adoption by significant end users in the cloud and telecom industries. The popularity of computer solutions in Mexico is a key encouraging element for the development of tier 4 facilities.
Hotspot
Guadalajara
Querétaro
Rest of Mexico
Data Center Size
Large
Massive
Medium
Mega
Small
Tier Type
Tier 1 and 2
Tier 3
Tier 4
Absorption
Non-Utilized
Utilized
By Colocation Type
Hyperscale
Retail
Wholesale
By End User
BFSI
Cloud
E-Commerce
Government
Manufacturing
Media & Entertainment
Telecom
Other End User
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Mexico Data Center Market Size Summary

The Mexico Data Center Market is experiencing significant growth, driven by the increasing demand for advanced data storage and processing solutions. The market is characterized by a shift towards higher-tier data centers, particularly tier 3 and tier 4 facilities, which offer enhanced redundancy and reliability. This transition is largely due to the rising need for uninterrupted services and the growing presence of international corporations in Mexico. The expansion of data centers is further supported by the surge in internet usage and smartphone penetration, which has led to a substantial increase in data traffic. The adoption of 5G technology and improvements in network coverage have also contributed to the burgeoning demand for data center infrastructure, as businesses seek to accommodate the growing volume of data generated by consumers and enterprises alike.

The market is fairly consolidated, with a few key players dominating the landscape. Companies such as CloudHQ, Equinix Inc., KIO Networks, MetroCarrier, and Telmex are at the forefront, driving innovation and expansion in the sector. Recent developments include significant investments in new data center campuses and collaborations to enhance cloud infrastructure services. These strategic moves are expected to bolster the market's growth trajectory, as they align with the increasing need for robust data management solutions across various industries, including BFSI, media, entertainment, and e-commerce. The forecast period indicates a continued upward trend in market size and revenue, underscoring the critical role of data centers in supporting Mexico's digital transformation.

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Mexico Data Center Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2029 AND ANALYSIS OF GROWTH PROSPECTS)

    1. 1.1 Hotspot

      1. 1.1.1 Guadalajara

      2. 1.1.2 Querétaro

      3. 1.1.3 Rest of Mexico

    2. 1.2 Data Center Size

      1. 1.2.1 Large

      2. 1.2.2 Massive

      3. 1.2.3 Medium

      4. 1.2.4 Mega

      5. 1.2.5 Small

    3. 1.3 Tier Type

      1. 1.3.1 Tier 1 and 2

      2. 1.3.2 Tier 3

      3. 1.3.3 Tier 4

    4. 1.4 Absorption

      1. 1.4.1 Non-Utilized

      2. 1.4.2 Utilized

        1. 1.4.2.1 By Colocation Type

          1. 1.4.2.1.1 Hyperscale

          2. 1.4.2.1.2 Retail

          3. 1.4.2.1.3 Wholesale

        2. 1.4.2.2 By End User

          1. 1.4.2.2.1 BFSI

          2. 1.4.2.2.2 Cloud

          3. 1.4.2.2.3 E-Commerce

          4. 1.4.2.2.4 Government

          5. 1.4.2.2.5 Manufacturing

          6. 1.4.2.2.6 Media & Entertainment

          7. 1.4.2.2.7 Telecom

          8. 1.4.2.2.8 Other End User

Mexico Data Center Market Size FAQs

The Mexico Data Center Market is projected to register a CAGR of 6.07% during the forecast period (2024-2029).

CloudHQ, Equinix Inc., KIO Networks, MetroCarrier (Megacable Holdings SAB de CV) and Telmex (American Movil) are the major companies operating in the Mexico Data Center Market.

Mexico Data Center Market Report Snapshots

Mexico Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029