Mexico Water Consumption Market Size
| Study Period | 2021 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Volume (2025) | 16.84 Billion liters |
| Market Volume (2030) | 27.12 Billion liters |
| CAGR (2025 - 2030) | 10.00 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Mexico Water Consumption Market Analysis
The Mexico Water Consumption Market size is estimated at 16.84 billion liters in 2025, and is expected to reach 27.12 billion liters by 2030, at a CAGR of greater than 10% during the forecast period (2025-2030).
IT Load Capacity: In 2024, the IT load capacity for Mexico colocation data center market is roughly 309.28 MW.
Geographical Significance: Mexico's diverse climate, split by the Tropic of Cancer, features both temperate and tropical regions. While 94.5% of the population has access to drinking water, only 70% can obtain freshwater. This limitation forces rural inhabitants to trek over three miles for water. Presently, 60% of Mexico faces drought conditions. Notably, Querétaro and Mexico City, both vital data center hubs, are enduring a severe two-year drought in 2024, raising concerns of reaching "day zero" in the coming months.
Raised Floor Space: In 2024, the raised floor space for Mexico colocation data center market is estimated at around 1,109,704.48 sq.ft.
Projected Installed Racks: The projected number of installed racks in Mexico colocation data center market for 2024 is approximately 44,183.
Mexico Water Consumption Market Trends
Rising Demand for Mega & Large Data Centers Amid Digitalization Trends Sparks Concerns Over Water Consumption
- Mexico's digital economy has surged recently, driven by increased internet access, mobile connectivity, AI advancements, and e-commerce growth. In 2023, Mexico led global e-commerce with a 23% rise, fueled by sectors like fashion, electronics, and consumer goods, alongside omnichannel retail strategies. By early 2024, Mexico had 107.3 million internet users, with over 50% on 5G and an 83.2% internet penetration rate.
- AI has become a cornerstone of Mexico's tech sector. Over the past two years, AI firms attracted nearly US 640 million in investments, achieving an average revenue of US1.3 million in 2024. Due to this, cloud data center operators are heavily investing in Mexico with Microsoft committing $1.3 billion over three years to enhance its cloud and AI infrastructure.
- Mexican companies are increasingly adopting cloud services and international providers to scale operations, improve efficiency, and reduce costs. This trend has led to significant investments in mega cloud data centers. Microsoft Azure, AWS, and IBM are the preferred cloud providers, with Banco Sabadell, Mexico's first 100% mobile bank, using IBM's public cloud and Red Hat Enterprise Linux to modernize applications and offer innovative services.
- This ongoing demand for AI, 5G, and cloud transformations is driving the growth of mega and cloud data centers in Mexico. AI chip leaders like Intel and AMD are increasing their investments to meet rising AI demands. This surge is boosting the need for liquid cooling technologies, leading to higher water consumption as AI workloads and IoT adoption expand.
Government Support Boosts Colocation Data Center Investments, Promoting Water Conservation Efforts
- Colocation data centers operate continuously, relying heavily on electricity and a mix of air and water for cooling. With increasing data and AI demands, operators are shifting towards liquid cooling methods like direct-to-chip and immersion cooling. However, some facilities, such as AWS in Queretaro, continue using air cooling, considering a switch to liquid cooling unnecessary.
- Queretaro and Mexico City are Mexico's main data center hubs. In 2024, both regions faced severe droughts and water shortages due to climate change and urban overuse impacting rural areas. Historically, the Mexican government overlooked data center investments, relying on the country's abundant power and water resources.
- Mexican government scrutiny has increased due high water consumption as new colocation and cloud data centers in Queretaro are projected to use 15 billion liters annually, about 13% of the area's total. The government urged operators to adopt eco-friendly practices, incentivizing reduced on-site water use despite potential overall increases. Equinix’s Mexico data centers use a "100%" closed system for indefinite water reuse. As AI workloads and IoT adoption grow, sustainable water use in data centers is crucial.
- The Mexican government, through the National Water Commission (Conagua), is investing USD 5.43 billion in key water projects, including dams and aqueducts, to combat water scarcity. As demand for data centers grows, driven by social media, OTTs, AI, IoT, and enhanced network connectivity, water consumption will rise, necessitating higher rack densities and GPUs dependent on liquid cooling technologies.
Mexico Water Consumption Industry Overview
The Mexico data center water consumption market is dominated by five major players: CloudHQ, Amazon Web Services Inc, Equinix Inc., KIO Networks, and Ascenty. Notably, several cloud data centers, including those run by tech giants like Google, Amazon Web Services, and Microsoft, have set an ambitious target to attain "water positive" status by 2030. Colocation operators, including Equinix's facilities in Mexico, are actively participating in this initiative. For instance, Equinix is implementing a closed-loop system, allowing them to recycle water used in their data centers.
Mexico Water Consumption Market Leaders
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CloudHQ
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Equinix Inc.
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Ascenty
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Amazon Web Services Inc
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KIO Networks
*Disclaimer: Major Players sorted in no particular order
Mexico Water Consumption Market News
- September 2023: ServerDomes teamed up with Fermaca Infraestructura, a leading infrastructure developer in Mexico, to create data centers in aluminum domes along a new fiber route. Fermaca Infraestructura plans to deploy Edge data centers using ServerDomes's design, which features aluminum geodesic domes that leverage natural convection for cooling, eliminating traditional methods. ServerDomes claims this innovation cuts power consumption by 27% and reduces water usage by 92% compared to similar facilities.
- September 2024: Microsoft's forthcoming data center in Querétaro will employ innovative liquid cooling technology, reducing water usage to less than 5% annually. Likewise, Google plans to collaborate with environmentally responsible Mexican suppliers to cut water consumption at its data center. These strategies address the ongoing drought issues impacting major Mexican states in 2024.
Mexico Water Consumption Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions And Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Research Framework
2.2 Secondary Research
2.3 Primary Research
2.4 Data Triangulation and Insight Generation
3. EXECUTIVE SUMMARY
4. MARKET INSIGHT
4.1 Market Overview
4.2 Market Dynamics
4.2.1 Market Drivers
4.2.1.1 AI, Cloud, and 5G Adoption Drive Significant Data Center Investments and Rising Water Usage
4.2.1.2 Rising Water Demand for Data Centers Sparks Innovations in Sustainable IT Infrastructure
4.2.2 Market Restraints
4.2.2.1 Data Centers Expand in Water-Scarce Regions Amid Rising Natural Disasters
4.3 Analysis of the Key Applications Based on the Water Consumption In Data Centers
4.4 Analysis of the Efficiency Benefits Realized With the Use of Water For Cooling in data Centers
4.5 Industry Regulations and Standards Related to Water Consumption
4.6 Case Study Analysis Detailing the Concept of Reuse Water (Greywater Recycling, Rainwater Recycling, Cooling Tower or Heat Exchangers Water Recycling or Evaporative Cooling) in Data Centers
4.7 Key Considerations in Water Scarce Areas
4.8 Key Analysis of Water Treatment Method (Filtration, Reverse Osmosis, Ultraviolet (UV) Disinfection, Chemical Treatment, Softening and Others) Used For Cooling in Data Centers
5. DATA CENTER INDUSTRY OUTLOOK
5.1 Current Market Scenario Data Center Footprint
5.2 Global Breakdown of Data Center Footprint
5.3 Analysis of the Major Hotspots For Dc Investments
6. MARKET SEGMENTATION
6.1 Market Segmentation - By Source of Water Procurement
6.1.1 Potable Water (Via Regional Water Utility Companies, Local Water Authorities or Private Companies)
6.1.2 Non-Potable Water (It Includes greywater (Treated Sewage or Recycled Water)
6.1.3 Other Alternate Source (It includes on-site Groundwater, Surface Water, Seawater, Water produced via a byproduct of oil and gas extraction, and Rainwater)
6.2 Market Segmentation - By Data Center Type
6.2.1 Enterprise
6.2.2 Colocation
6.2.3 Cloud Service Providers (CSPs)
6.3 Market Segmentation - By Data Center Size
6.3.1 Mega
6.3.2 Massive
6.3.3 Large
6.3.4 Medium
6.3.5 Small
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 CloudHQ
7.1.2 Equinix Inc.
7.1.3 Microsoft Corporation
7.1.4 KIO Networks
7.1.5 Ascenty Data Centers
7.1.6 Telmex (American Movil)
7.1.7 Amazon Web Services Inc.
7.1.8 Aligned Data Centers, LLC
7.1.9 Stack Infrastructure
7.1.10 HostDime Global Corp.
- *List Not Exhaustive
8. FUTURE OUTLOOK OF THE MARKET
9. ABOUT US
9.1 Industries Covered
9.2 Illustrative List of Clients in the Industry
9.3 Our Customized Research Capabilities
Mexico Water Consumption Industry Segmentation
The study tracks the critical applications of water in large data centers, such as cooling and power generation. It includes key applications based on water consumption in data centers and quantifies overall water usage in billion liters across regions. The study also identifies underlying trends and developments conceptualized by leading industry data center operators.
The Mexico Water Consumption Market is Divided Into Segments Based On Water Procurement (Potable Water, Non-Potable Water, and Other Alternate Sources), Data Center Type (Enterprise, Colocation, and Cloud Service Providers (CSPs)), and Data Center Size (Mega, Massive, Large, Medium, and Small). The Report Provides Market Size and Forecasts for all These Segments, Measured in Volume (Billion Liters).
| Market Segmentation - By Source of Water Procurement | |
| Potable Water (Via Regional Water Utility Companies, Local Water Authorities or Private Companies) | |
| Non-Potable Water (It Includes greywater (Treated Sewage or Recycled Water) | |
| Other Alternate Source (It includes on-site Groundwater, Surface Water, Seawater, Water produced via a byproduct of oil and gas extraction, and Rainwater) |
| Market Segmentation - By Data Center Type | |
| Enterprise | |
| Colocation | |
| Cloud Service Providers (CSPs) |
| Market Segmentation - By Data Center Size | |
| Mega | |
| Massive | |
| Large | |
| Medium | |
| Small |
Mexico Water Consumption Market Research Faqs
How big is the Mexico Water Consumption Market?
The Mexico Water Consumption Market size is expected to reach 16.84 billion liters in 2025 and grow at a CAGR of greater than 10% to reach 27.12 billion liters by 2030.
What is the current Mexico Water Consumption Market size?
In 2025, the Mexico Water Consumption Market size is expected to reach 16.84 billion liters.
Who are the key players in Mexico Water Consumption Market?
CloudHQ, Equinix Inc., Ascenty, Amazon Web Services Inc and KIO Networks are the major companies operating in the Mexico Water Consumption Market.
What years does this Mexico Water Consumption Market cover, and what was the market size in 2024?
In 2024, the Mexico Water Consumption Market size was estimated at 15.16 billion liters. The report covers the Mexico Water Consumption Market historical market size for years: 2021, 2022, 2023 and 2024. The report also forecasts the Mexico Water Consumption Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Mexico Water Consumption Industry Report
Statistics for the 2025 Mexico Water Consumption market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Mexico Water Consumption analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
