Mexico Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

Mexico Data Center Market Trends

Launch of 5G services and investment by telecom providers to enhance network coverage to boost the market growth

• The total data traffic per smartphone in the country was 9.5 GB in 2022 and is expected to witness a CAGR of 21.45% during the forecast period to reach a value of 40.12 GB by 2029.
• On average, Mexicans spend more than 7 hours a day online, owing to a steady rise in internet usage each year. Additionally, Mexico's internet usage has surged due to the state-wide 5G launch at the beginning of 2022. Similarly, over the past few years, the government and major telecom providers have invested millions of pesos, which has enhanced network coverage in rural areas. More than 74.87% of Mexicans who owned a mobile phone in 2022 used it to access the internet through a browser or an app. Around 88.77% of mobile users in the nation are anticipated to have access to the internet through their mobile devices by 2027.
• The average internet user in Mexico will generate 28.9 Gigabytes of monthly internet traffic in 2021, up from 17.1 Gigabytes in 2016. In addition, 94.4 Gigabytes of internet traffic were produced monthly by the typical internet home in 2021, up 65% from 57.2 Gigabytes in 2016. This comparison and a huge increase in data traffic are expected to increase the number of racks in the existing data center facilities during the forecast period.

Adoption of 5G network to boost market growth

• The total number of smartphone users in the country was 90.41 million in 2022 and is expected to reach a value of 108.56 million by 2029, recording a CAGR of 3.10% during the forecast period.
• In 2020, smartphone data usage per month in Mexico was 5.5 gigabytes, and it is expected to reach 28.4 gigabytes per month by 2026. The most recent wireless broadband cellular technology employed by network operators is the 5th generation (5G) in the country. It was anticipated that 39% of Mexican mobile customers would switch to a 5G network as soon as it was fully accessible in their area. Despite this willingness, many people still view adopting this technology as a luxury because it requires purchasing new devices that support 5G. In actuality, less than 10% of Mexicans had a 5G mobile network at the time.
• In Mexico, 97% of internet users access the internet through a smartphone, compared to 32% who use laptops and desktop computers. This has positively influenced the development of the BFSI, media, and entertainment sectors, as well as the e-commerce sector, where a sizable amount of data has been generated. The most popular website, with 93.4% of visits, is Facebook. On the other hand, 80.5% of Mexicans used Facebook Messenger. TikTok came in sixth, with 70.4% of users in the area, and Instagram came in second with 79.1%. This shows there is huge penetration of smartphones in the country, primarily requiring data centers for storage since they require real-time processing on enormous data chunks. Such positive growth of smartphones in the country is expected to lead to an increase in the number of data centers during the forecast period.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

Segment Analysis: By Data Center Size

Massive Segment in Mexico Data Center Market

The massive data center segment dominates the Mexico data center market, holding approximately 54% market share in 2024, with an IT load capacity of 194.62 MW. This significant market position is driven by the increasing demand from various end-user industries such as BFSI, cloud services, and IT companies that require extensive computing and storage capabilities. The massive data centers in Mexico are primarily concentrated in key hotspots like Queretaro data center and other strategic locations across Mexico, offering comprehensive infrastructure solutions with advanced cooling systems and power management capabilities. These facilities are equipped with state-of-the-art technology and maintain high standards of security and operational efficiency, making them the preferred choice for large enterprises and hyperscale customers requiring robust data center infrastructure.

Mega Segment in Mexico Data Center Market

The mega data center segment is emerging as the fastest-growing segment in the Mexican market, driven by significant investments and expansion plans from major operators. Layer 9 is spearheading this growth with plans to construct substantial facilities in the Guanajuato region, focusing on delivering hyperscale capacity. The segment is witnessing increased traction due to the growing adoption of 5G technology, industrial digitalization, and smart city initiatives across Mexico. These mega facilities are designed to provide massive scalability and superior operational efficiency, with advanced infrastructure capabilities to support high-density computing environments. The strategic location selection and government incentives in regions like Guanajuato are further accelerating the development of these mega facilities.

Remaining Segments in Data Center Size Market

The market also encompasses large, medium, and small data center segments, each serving distinct customer needs and market requirements. Large data centers cater to established enterprises and service providers, offering balanced infrastructure solutions. Medium-sized facilities primarily serve regional businesses and government organizations, providing flexible colocation options and managed services. The small data center segment, while limited in capacity, continues to serve specific niche markets and local business requirements. These segments collectively contribute to the market's diversity, offering various options for different scales of operation and business needs across Mexico's growing digital landscape.

Segment Analysis: By Tier Type

Tier 4 Segment in Mexico Data Center Market

The Tier 4 segment dominates the Mexico data center market, commanding approximately 68% market share in 2024, driven by the increasing demand for fault-tolerant and highly reliable data center facilities. These data centers provide redundancy for every component and are fault-resistant, with clients experiencing no more than 26.3 minutes of downtime annually. Government organizations and major corporations with mission-critical servers and high customer demands primarily utilize Tier 4 facilities. The growth of data centers with the best infrastructure certifications in Mexico is facilitated by the entry of significant international corporations and an increase in the country's enterprises. Major operators like KIO Networks, Ascenty (Digital Realty), Serveris, and Telmex have established Tier 4-certified data centers across key locations including Queretaro, Guadalajara, and other parts of Mexico. The segment is also witnessing significant expansion with more than 6 facilities with 153 MW capacity of Tier 4 certification expected to be established across various hotspot regions.

Tier 3 Segment in Mexico Data Center Market

The Tier 3 segment represents a significant portion of the market, characterized by its reliability and cost-effectiveness in meeting the growing demand for uninterrupted services from businesses. These facilities are equipped with multiple channels for electricity and cooling, as well as methods for updating and maintaining infrastructure without taking it offline. Tier 3 data centers maintain an expected uptime of 99.982% with an annual downtime of just 1.6 hours, making them particularly attractive to small and medium-sized businesses that require robust redundancy protections. The segment has seen substantial development in Guadalajara, which has the maximum number of Tier 3 data centers in the country with a market share of more than 40%, followed by Queretaro with more than 30% of Tier 3 facilities. Major players like KIO Networks, Equinix Inc., Nabiax, and ODATA have established multiple Tier 3-certified facilities across these regions, contributing to the segment's steady growth.

Remaining Segments in Mexico Data Center Market by Tier Type

Tier 1 and Tier 2 data centers represent the basic level of data center infrastructure in Mexico, primarily serving small companies and start-ups with simple requirements. These facilities offer the most affordable data center solutions with an expected uptime guarantee of 99.671% and less than 28.8 hours of downtime annually. While these tiers provide essential services for businesses with basic infrastructure needs, they are gradually losing favor in the market as organizations increasingly prioritize higher reliability and uptime guarantees. The shift away from Tier 1 and 2 facilities reflects the overall market trend toward more sophisticated and reliable data center infrastructure, particularly as businesses become more dependent on continuous digital operations.

Segment Analysis: By Absorption

Utilized Segment in Mexico Data Center Market

The utilized segment dominates the Mexico data center market, accounting for approximately 88% of the total IT load capacity in 2024. This segment's prominence is driven by the increasing adoption of cloud services, digital transformation initiatives, and the growing presence of hyperscale providers in the region. The segment encompasses various end-users including cloud service providers, BFSI sector, e-commerce platforms, government institutions, manufacturing facilities, media and entertainment companies, and telecom operators. The migration of cloud hyperscale data centers has significantly contributed to the absorption rate, accelerating the adoption of data center storage technologies across the country. The higher absorption is particularly notable in sectors leveraging racks and servers for cloud computing, e-commerce operations, financial services, and telecommunications infrastructure. Mexico's position as the 15th largest e-commerce market globally further reinforces the utilization rates, with digital transactions and online services driving demand for data center capacity.

Non-Utilized Segment in Mexico Data Center Market

The non-utilized segment in Mexico's data center market represents the available capacity that remains unoccupied but ready for deployment. This segment plays a crucial role in maintaining operational flexibility and accommodating future growth requirements. Data center operators strategically maintain a portion of non-utilized capacity to ensure rapid scalability when needed, particularly in response to sudden demand surges or new client requirements. The segment serves as a buffer for expansion plans and helps maintain optimal performance levels across facilities. Non-utilized capacity also enables data center operators to implement regular maintenance schedules and upgrades without disrupting existing operations. This approach aligns with industry best practices for capacity planning and risk management, ensuring that facilities can respond effectively to evolving market demands while maintaining service quality and reliability.

Free With This Report

We provide a complimentary and exhaustive set of data points on the country and regional level metrics that present the fundamental structure of the industry. Presented in the form of 50+ free charts, the sections cover difficult to find data on various countries on smartphone users, data traffic per smartphone, mobile and broadband data speed, fiber connectivity network, and submarine cables.