Mexico Data Center Power Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 437.80 Million |
| Market Size (2029) | USD 833.40 Million |
| CAGR (2024 - 2029) | 7.10 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Mexico Data Center Power Market Analysis
The Mexico Data Center Power Market size is estimated at USD 437.80 million in 2024, and is expected to reach USD 833.40 million by 2029, growing at a CAGR of 7.10% during the forecast period (2024-2029).
The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.
- Under Construction IT Load Capacity: The upcoming IT load capacity of the Mexican data center market is expected to reach 480 MW by 2029.
- Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 2.2 million sq. ft by 2029.
- Planned Racks: The country's total number of racks to be installed is expected to reach 120,000 units by 2029. Querétaro is expected to house the maximum number of racks by 2029.
- Planned Submarine Cables: There are around 11 submarine cable systems connecting Mexico, and many are under construction.
Mexico Data Center Power Market Trends
Switched PDU is Anticipated to be Fastest-growing Segment
- Switched PDUs are important in remote deployments because they allow users to restart servers and restore service without having to physically visit the data center site. It also helps users save energy and reduce costs by enabling them to turn off devices that are not in use. In the event of a utility power failure, non-essential loads can be shut down to maximize UPS uptime.
- A switched PDU is a type of smart rack PDU that can turn on or off single outlets or groups of outlets on the PDU. Switched PDUs allow users to remotely control devices and provide power in a specific order. It also allows the user to delay the power-on sequence, which eliminates power sags and extends device life.
- The rising computation and storage needs to support high-end applications have made hyperscale data centers extremely powerful in recent years. As the number of business-critical apps rises, data centers are becoming more complicated. The mobile gaming market is expanding in Mexico. In the Mexican gaming app business, gaming companies like Big Baja Apps, Minibuu, Runo Networks, and NEGAS are assisting the industry's expansion into a billion-dollar revenue market.
- With the maximum growth of massive data centers in the country, the need for PDUs has also increased. E-commerce usage in Mexico increased significantly as a result of the COVID-19 pandemic. By 2025, approximately 77.9 million people are expected to shop online in Mexico, owing to advancements in connectivity, financial inclusion, efficient logistics, and digital literacy. The need for data centers in Mexico is expected to rise as a result of the requirement for more servers and racks to store the influx of data. The rising data traffic would further create a demand for DC facilities with smart PDU systems.
- Switched PDUs with outlet metering help users monitor power consumption and available capacity. Easily understand actual power consumption at the device level, allowing users to compare efficiencies, improve capacity planning, increase utilization of existing resources, and allocate costs to specific customers or business units. The above-mentioned instances and benefits of switched PDU are expected to accelerate the growth of the segment during the forecast period.
IT and Telecommunication is the Largest Segment
- About 80% of Mexican businesses use cloud-based services through private or hybrid cloud models. This is due to favorable government initiatives that have lowered entry barriers for domestic cloud providers and reduced investment risks associated with technology obsolescence and change.
- Mexican government agencies are focusing on providing cloud-based e-government services as they go digital. This will drive the population's internet usage, which, in turn, is expected to drive the growth of the market. It is widely seen as the next-generation computing revolution in major vertical end-use markets such as the public sector, banking, financial services and insurance, healthcare, and retail.
- In 2018, 48% of Mexican businesses invested in cloud products and services. Of the companies that have adopted this technology, 30% have invested part of their IT budget in public clouds, and the remaining 18% have invested in private clouds. In early 2020, Microsoft announced it would build its first cloud data center in Mexico over the next five years as part of a USD 1.1 billion investment.
- Major companies providing cloud services in Mexico's cloud computing industry include Microsoft Corporation, Amazon Web Services, IBM Corporation, Accenture, Oracle Corporation, SAP SE, Google, Rackspace, Salesforce.com, and Telefonica. The purpose of these cloud service providers is to extend their service portfolio and existing delivery models, such as public and private cloud models, in order to offer comprehensive solutions to their customers.
- With the rise of the digital economy and the increasing number of Internet users in Mexico, the need for data storage and processing is increasing. The proliferation of hybrid cloud service providers has increased demand for colocation services and increased rack utilization.
Mexico Data Center Power Industry Overview
The Mexican data center power market is moderately competitive. It has gained a competitive edge in recent years. In terms of market share, a few major players, such as ABB Ltd, Caterpillar Inc., Cummins Inc., Eaton Corporation, and Cisco Systems Inc., are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
- January 2024: Caterpillar Inc. partnered with Microsoft and Ballard Power Systems to test the use of large-format hydrogen fuel cells as a reliable and eco-friendly backup power source for multi-megawatt data centers. Hydrogen fuel cells are seen as a possible low-carbon alternative to diesel backup generators, which is expected to drive the growth of DC generators.
- March 2024: Schneider Electric announced its expansion of US manufacturing facilities at two locations to support critical infrastructure of data centers and other industries. At both locations, the company planned to manufacture electrical switchgear and medium-voltage power distribution products.
Mexico Data Center Power Market Leaders
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ABB Ltd.
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Caterpillar Inc.
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Cummins Inc.
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Eaton Corporation
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Cisco Systems Inc.
*Disclaimer: Major Players sorted in no particular order
Mexico Data Center Power Market News
- April 2024: Vertiv, a significant provider of critical digital infrastructure and continuity solutions, introduced the extension of the Vertiv Liebert GXT5 Lithium-Ion double-conversion, online uninterruptible power supply (UPS) system for 5 kVA to 10 kVA global voltage (GV) (200 V to 240 V; default 230 V) applications.
- December 2023: Eaton, an intelligent power management company, announced the launch of its new Rack PDU G4 (4th generation) that provides a high security and business continuity data center. It also combines with C39 outlets that securely connect both C14 and C20 power cords, backed by a locking mechanism and a built-in high retention system that secures the power cord.
Mexico Data Center Power Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumption and Market Definition
1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. Market Dynamics
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rising Adoption of Mega Data Centers and Cloud Computing
4.2.2 Increasing Demand to Reduce Operational Costs
4.3 Market Restraints
4.3.1 High Cost of Installation and Maintenance
4.4 Value Chain / Supply Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Assessment of COVID-19 Impact
5. MARKET SEGMENTATION
5.1 By Power Infrastructure
5.1.1 Electrical Solution
5.1.1.1 UPS Systems
5.1.1.2 Generators
5.1.1.3 Power Distribution Solutions
5.1.1.3.1 PDU
5.1.1.3.2 Switchgear
5.1.1.3.3 Critical Power Distribution
5.1.1.3.4 Transfer Switches
5.1.1.3.5 Remote Power Panels
5.1.1.3.6 Other Power Distribution Solutions
5.1.2 Service
5.2 By End User
5.2.1 IT and Telecommunication
5.2.2 BFSI
5.2.3 Government
5.2.4 Media and Entertainment
5.2.5 Other End Users
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 ABB Ltd
6.1.2 Caterpillar Inc.
6.1.3 Cummins Inc.
6.1.4 Eaton Corporation
6.1.5 Legrand Group
6.1.6 Rolls-Royce PLC
6.1.7 Vertiv Group Corp.
6.1.8 Schneider Electric SE
6.1.9 Rittal GmbH & Co. KG
6.1.10 Fujitsu Limited
6.1.11 Cisco Systems Inc.
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
Mexico Data Center Power Industry Segmentation
Data center power refers to the power infrastructure, including electrical components and electrical distribution systems, that provide the power necessary to operate and support the devices and servers within the data center. It includes various components and technologies designed to ensure a reliable, uninterruptible power supply for data center IT equipment, including uninterruptible power supplies (UPS), power distribution units (PDU), backup generators, and other power management solutions tailored to the specific needs of data centers. Data center operators achieve data center redundancy through duplicated components to maintain uninterrupted operations in the event of failure of some components and to maintain uptime during maintenance.
The Mexican data center power market is segmented by power infrastructure (electrical solution {UPS system, generators, power distribution solutions [PDU, switchgear, critical power distribution, transfer switches, remote power panels, other power distribution solutions]}, and service) and end user (IT and telecommunication, BFSI, government, media and entertainment, and other end users). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Power Infrastructure | ||||||||||||
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| Service |
| By End User | |
| IT and Telecommunication | |
| BFSI | |
| Government | |
| Media and Entertainment | |
| Other End Users |
Mexico Data Center Power Market Research FAQs
How big is the Mexico Data Center Power Market?
The Mexico Data Center Power Market size is expected to reach USD 437.80 million in 2024 and grow at a CAGR of 7.10% to reach USD 833.40 million by 2029.
What is the current Mexico Data Center Power Market size?
In 2024, the Mexico Data Center Power Market size is expected to reach USD 437.80 million.
Who are the key players in Mexico Data Center Power Market?
ABB Ltd., Caterpillar Inc., Cummins Inc., Eaton Corporation and Cisco Systems Inc. are the major companies operating in the Mexico Data Center Power Market.
What years does this Mexico Data Center Power Market cover, and what was the market size in 2023?
In 2023, the Mexico Data Center Power Market size was estimated at USD 406.72 million. The report covers the Mexico Data Center Power Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Mexico Data Center Power Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Mexico Data Center Power Industry Report
Statistics for the 2024 Mexico Data Center Power market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Mexico Data Center Power analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
