Market Trends of Mexico Data Center Construction Industry
IT & Telecom Segment Holds Significant Market Share
- Cloud computing is becoming more widely used in Mexico. In 2018, 48% of businesses in the country made investments in cloud-related goods and services. Microsoft announced "Innovate for Mexico" in 2020 to aid in the development of the country.
- The primary goal of the strategy is to hasten Mexico's digital transformation through democratizing access to technology. The corporation's five-year USD 1.1 billion investment plan aims to build an area for cloud data centers in the country. With the option of in-country data residency, data center areas would offer highly accessible, scalable, and secure cloud services across Mexico.
- It is also anticipated that the end users in the manufacturing, media & entertainment, financial services, and e-commerce sectors would accelerate the expansion of IT load capacity through increased data consumption. The Mexican government has launched research and development initiatives through the Secretariat of Economy and the National Council of Science and Technology (Conacyt) to spark Industry 4.0 in the country.
- SENER (the Secretariat of Energy), SICT (the Secretariat of Infrastructure, Communication, and Transportation), and SAGARPA (the Secretariat of Agriculture and Rural Development) are working on Industry 4.0 projects that encourage innovation to help the country's economy. Internet shopping would add to the rising data consumption as the user base increases. Due to the tempting bargains being offered, customers are expected to be more likely to shop online, which would increase demand for digital payment systems and website traffic, increasing data consumption further. The aggregate of all these influences is expected to result in a significant rise in consumption, driving the demand for data centers in the area.
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Tier 4 Data Center Segment Expecting Fastest Growth
- 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 is gradually shifting toward tier-4 colocation services due to the country's growing data traffic and business volume. The increase in hyperscale customers across the country may also lead to a drop in retail and wholesale colocation. The infrastructure for hyperscale computing grows and contracts in response to changing consumer demands. Tier 4 data centers guarantee that such dynamic scaling is seamless, which is made possible by a reliable system with adaptable memory, networking, and storage capabilities. Future tier 4 data centers have much room to develop as cloud applications and services become more sophisticated in modern corporate organizations and people's everyday lives.
- The market for tier 4 colocation services is growing due to the popularity of cloud-based services, BFSI, e-commerce, and IT companies. For instance, over 10% of Mexico's ICT services income came from cloud services in 2019. Data centers have recently become extremely powerful due to the growing demand for computation and storage needed to support high-end applications. Mission-critical apps are becoming more prevalent, which has increased the complexity of data center needs.
- 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. In 2020, 72% of Mexicans played online games, an increase from 44% in 2019.
- Around 36% of people in Mexico spend an hour or more a day playing mobile games. With over 1.8 million downloads, Crash Bandicoot: On the Run! was the most downloaded free game among Mexicans in 2021. The Stacky Dash came in second with 1.3 million downloads, closely followed by Garena Free Fire: World Series with 1.2 million. Cloud computing is also growing, with 48% of Mexican businesses investing in cloud-related goods and services. Digital requirements in Mexico are expanding as more individuals and organizations depend on technology to keep in touch, informed, and productive. As a result, there is an increasing need for tier 4 data centers in Mexico.
