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Mexico Data Center Power Market Size (2024 - 2029)

The Mexico Data Center Power Market is projected to experience significant growth over the forecast period, driven by the increasing demand for cloud computing among small and medium-sized enterprises, government regulations for local data security, and rising investments from domestic players. This expansion is reflected in the anticipated increase in IT load capacity, raised floor space, and the number of racks to be installed. Additionally, the development of submarine cable systems is set to enhance connectivity, further supporting the market's growth trajectory.

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Market Size of Mexico Data Center Power Industry

Mexico Data Center Power Market Summary
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

Mexico Data Center Power Market 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 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
Electrical Solution
UPS Systems
Generators
Power Distribution Solutions
PDU
Switchgear
Critical Power Distribution
Transfer Switches
Remote Power Panels
Other Power Distribution Solutions
Service
By End User
IT and Telecommunication
BFSI
Government
Media and Entertainment
Other End Users
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Mexico Data Center Power Market Size Summary

The Mexico Data Center Power Market is poised for significant growth, driven by the increasing demand for cloud computing services, particularly among small and medium enterprises, and supportive government regulations aimed at enhancing local data security. The market is experiencing a surge in investment from domestic players, which is further propelling the expansion of data center infrastructure across the country. The rise of hyperscale data centers, fueled by the growing need for advanced computation and storage capabilities, is a key trend. This expansion is supported by the burgeoning mobile gaming industry and the rapid increase in e-commerce activities, which have been accelerated by the COVID-19 pandemic. The demand for smart infrastructure, such as switched PDUs, is also on the rise, as these systems offer energy efficiency and cost-saving benefits, crucial for managing the increasing data traffic and server requirements.

The market landscape is moderately competitive, with major players like ABB Ltd, Caterpillar Inc., Cummins Inc., Eaton Corporation, and Cisco Systems Inc. actively engaging in strategic partnerships and acquisitions to enhance their offerings and maintain a competitive edge. The proliferation of cloud-based services, particularly through private and hybrid models, is reshaping the market dynamics, with significant investments from global tech giants like Microsoft and Amazon Web Services. These companies are expanding their service portfolios to meet the growing demand for data storage and processing solutions. The introduction of innovative technologies, such as hydrogen fuel cells for backup power and advanced UPS systems, underscores the industry's commitment to sustainability and efficiency. As the digital economy continues to expand, the Mexican data center power market is expected to witness robust growth, driven by technological advancements and increasing internet penetration.

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Mexico Data Center Power Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Rising Adoption of Mega Data Centers and Cloud Computing

      2. 1.2.2 Increasing Demand to Reduce Operational Costs

    3. 1.3 Market Restraints

      1. 1.3.1 High Cost of Installation and Maintenance

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Assessment of COVID-19 Impact

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Power Infrastructure

      1. 2.1.1 Electrical Solution

        1. 2.1.1.1 UPS Systems

        2. 2.1.1.2 Generators

        3. 2.1.1.3 Power Distribution Solutions

          1. 2.1.1.3.1 PDU

          2. 2.1.1.3.2 Switchgear

          3. 2.1.1.3.3 Critical Power Distribution

          4. 2.1.1.3.4 Transfer Switches

          5. 2.1.1.3.5 Remote Power Panels

          6. 2.1.1.3.6 Other Power Distribution Solutions

      2. 2.1.2 Service

    2. 2.2 By End User

      1. 2.2.1 IT and Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media and Entertainment

      5. 2.2.5 Other End Users

Mexico Data Center Power Market Size FAQs

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.

In 2024, the Mexico Data Center Power Market size is expected to reach USD 437.80 million.

Mexico Data Center Power Market Report Snapshots

Mexico Data Center Power Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)