Mexico Hyperscale Data Center Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 1.37 Billion |
| Market Size (2030) | USD 2.80 Billion |
| Growth Rate (2025 - 2030) | 15.00% CAGR |
| Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
|
Mexico Hyperscale Data Center Market Analysis by Mordor Intelligence
The Mexico Hyperscale Data Center Market size is estimated at USD 1.37 billion in 2025, and is expected to reach USD 2.80 billion by 2030, at a CAGR of greater than 15% during the forecast period (2025-2030).
Mexico's position as a nearshoring hub for United States cloud providers and the rapid digital transformation across industries are driving significant growth in the data center market. The country has become Latin America's second-largest data center market, with Querétaro emerging as the central hub, hosting nearly half of the nation's data center power capacity.
The increasing demand for AI workloads is transforming infrastructure requirements, with hyperscale facilities now designed to support high-density computing. Querétaro leads the market in 2024, benefiting from its strategic location, favorable climate, and supportive government policies. Hyperscale Colocation holds the largest share in the Data Center Type segment, while Infrastructure-as-a-Service (IaaS) dominates the Service Type category with over 50% market share. Cloud and IT service providers represent the largest end-user group, leveraging Mexico's strategic position as a bridge between North and Latin America.
Power infrastructure has become a critical challenge, with grid congestion in central regions limiting the development of new large-scale campuses exceeding 100 MW. To address this, innovative solutions are being implemented, such as a 300 MW campus in Querétaro that includes investments in transmission infrastructure. Energy demand from data centers is projected to rise by over 230% in the next five years, necessitating investments of at least USD 8.732 billion in power infrastructure.
Major hyperscale operators, including Amazon Web Services (AWS), Microsoft Corporation, and Google LLC, are making substantial investments in Mexico. AWS has committed USD 5 billion to establish a cloud region by 2025. These investments are reshaping the competitive landscape while placing additional pressure on existing infrastructure. The convergence of nearshoring trends and AI-driven demand is fostering a unique market environment, where hyperscale operators increasingly invest in self-built facilities, particularly in regions with access to renewable energy, rather than relying solely on colocation providers.
Mexico Hyperscale Data Center Market Trends and Insights
Nationwide AI Adoption and Sector-Wide Cloud Computing Drive Demand
Mexico acts as a vital connection between the United States and Latin America, positioning itself as a significant hub for transatlantic and transpacific trade routes. Its advantageous location has drawn hyperscale cloud providers and technology companies. Queretaro has emerged as a key investment destination, with Microsoft Corporation opening its first hyper-scale cloud data center in the country. Furthermore, Tesla, Inc., Alibaba Group Holding Limited, and KIO Networks are planning new data center developments, strengthening Mexico's technological landscape.
Mexico leads in artificial intelligence (AI) investments, surpassing both Latin American and global averages, driven by industries focusing on efficiency and innovative strategies. The country now hosts 362 active AI firms, marking a 2.7-fold rise since 2021. By 2025, AI spending by Mexican businesses is projected to grow 2.4 times, emphasizing Generative AI and hybrid models. This growth rate outpaces the Latin American average (2.4x versus 1.8x), with 64% of organizations adopting hybrid or on-premises solutions to safeguard data sovereignty. Increasing cloud adoption has prompted major investments from cloud providers to meet the rising demand for AI and cloud services. For example, Alibaba Cloud entered the Mexican market in 2022 by establishing a customer service center in Mexico City. By 2025, the company plans to launch its first data center in Mexico, expanding its digital infrastructure to support Latin America's growing needs.
The adoption of AI in Mexico aligns with the nearshoring trend, as businesses seek to diversify supply chains and lower costs by relocating operations closer to the U.S. market. Mexico's proximity to the United States and the growing demand for North American manufacturing have made it a strategic hub for industrial investments. This shift has driven manufacturers to implement advanced technologies like AI to enhance productivity, optimize operations, and remain competitive in a rapidly changing market. In 2024, U.S.-based technology firms began investing in northern Mexico to establish facilities for semiconductor and AI chip production. The increasing demand for semiconductors, GPUs, and CPUs has further encouraged hyperscale cloud providers to invest in Mexico, enabling them to meet the expanding needs for cloud and AI solutions.
Near-shoring–Led Demand Surge from U.S. Cloud & SaaS Firms Targeting LATAM Users
The strategic repositioning of U.S. cloud and SaaS providers to Mexico is creating unprecedented demand for hyperscale infrastructure, driven by the dual advantages of proximity to the U.S. and access to Latin American markets. Mexico's position as the top nearshoring destination for U.S. tech companies is supported by significant cost advantages, with U.S. firms saving up to 50% on operational costs while maintaining geographic proximity that reduces latency for critical services Axented. This trend is accelerating as companies seek to diversify supply chains and reduce dependencies on Asia-Pacific regions. The impact extends beyond infrastructure to talent acquisition, with Mexico's pool of over 2.2 million software engineers providing essential human capital for complex data center operations. The USMCA trade agreement further strengthens this positioning by providing a stable regulatory framework for cross-border data flows. The nearshoring phenomenon is particularly evident in Querétaro, where major cloud providers are establishing availability zones to serve both Mexican and broader Latin American markets, creating a virtuous cycle of infrastructure investment and service expansion that is fundamentally altering the competitive landscape of the region's digital economy.
5G/6G Spectrum Auctions Accelerating Hyperscale Edge Build-outs in Mexico's Industrial North
The ongoing 5G spectrum auctions in Mexico are driving a significant shift in hyperscale data center deployments toward the industrial northern regions, fostering a distributed architecture that complements the centralized facilities in Querétaro. By 2024, mobile broadband connections in Mexico have risen to 120 million, a substantial increase from 27 million in 2013, establishing a strong base for edge computing demand. The Federal Telecommunications Institute has implemented a technology-neutral policy for spectrum management, granting operators the flexibility to tailor their 5G deployment strategies, which is accelerating infrastructure investments. This regulatory framework is particularly advantageous for manufacturing industries, enabling them to capitalize on Industrial Internet of Things (IIoT) applications. Consequently, Mexico's manufacturing regions are anticipated to gain significantly from 5G's industrial applications. The integration of 5G infrastructure with edge computing capabilities is introducing a new layer of smaller, distributed hyperscale facilities designed to process data closer to industrial users, fundamentally transforming the geographic distribution of Mexico's data center market.
Federal 'Internet para Todos' Fiber Backbone Unlocking Secondary-City Hosting Demand
Mexico's national fiber backbone initiative is revolutionizing data center development by extending opportunities for hyperscale facilities into previously underserved areas. The expansion of fiber infrastructure is crucial to accommodate the expected increase in FTTH penetration, forecasted to reach 57% with 80% coverage by 2027, requiring investments of approximately USD 134 billion by 2030. This improved connectivity enables secondary cities to attract data center investments, reducing reliance on Querétaro and promoting a more balanced national framework. By extending the high-capacity backbone beyond urban centers, the initiative resolves key market challenges, allowing operators to optimize factors such as land costs, energy availability, and natural disaster risks. This diversification is particularly advantageous for edge computing, which depends on proximity to end users, creating new categories of hyperscale facilities designed for specific workloads and latency demands. As the backbone evolves, it enhances the national data infrastructure, supporting distributed computing models for future applications while minimizing risks linked to geographic concentration.
Competitive Landscape
The hyperscale data center market in Mexico presents a moderately concentrated competitive environment, featuring a mix of global hyperscale operators, international colocation providers, and established local players. A significant transformation is occurring as major cloud service providers increasingly adopt self-construction strategies, moving away from exclusive reliance on colocation services. For example, Amazon Web Services (AWS) has committed USD 5 billion to develop a new cloud region, while Microsoft Corporation has launched its first hyperscale cloud data center in Querétaro. This shift is intensifying competition, particularly in prime locations where power constraints create a race for limited resources, favoring operators with substantial capital and expertise in transmission infrastructure.
Opportunities are emerging in secondary markets outside Querétaro, where power and water limitations are less pronounced. These regions are particularly appealing to operators skilled in integrating renewable energy and implementing water-efficient cooling technologies. The growing importance of artificial intelligence (AI) capabilities is further reshaping the competitive landscape, with facilities designed for high-density GPU clusters gaining an edge over traditional infrastructure. This evolution is introducing new competitive factors beyond traditional metrics such as capacity and connectivity. Emerging disruptors include specialized AI infrastructure providers and companies like CloudHQ, which is advancing power infrastructure for a new data center campus in Mexico. Additionally, collaborations between data center operators and energy providers are becoming more prevalent. For instance, ODATA has partnered with Ammper to develop power infrastructure for its 300MW campus, emphasizing the critical role of energy expertise in addressing Mexico's grid constraints.
Mexico Hyperscale Data Center Industry Leaders
-
Amazon Web Services, Inc. (AWS)
-
Microsoft Corporation
-
KIO Networks
-
Google, Inc.
-
Equinix, Inc.
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- March 2025: The Mexican government has revealed plans for Fermaca Digital City, a state-of-the-art natural gas-powered data center campus near Durango City in Durango state. This project will feature a 250MW data center, a 2,000km (1,242 miles) fiber network connecting northern Mexico to Querétaro, with extensions to Guadalajara and Durango, and a 160km gas pipeline from Texas to Durango. Additionally, the development will include a 350MW on-site combined cycle power plant, ensuring a reliable energy supply for the facility.
- January 2025: Microsoft Corporation introduced its first datacenter region in Queretaro, Mexico, expanding its global network of over 60 cloud regions. This development establishes Mexico as the location of Microsoft's first data center in Spanish-speaking Latin America. The advanced hyperscale infrastructure enables businesses to efficiently scale their systems to meet increasing demands.
- May 2025: ODATA inaugurated its largest data center, DC QR03, in Querétaro, Mexico, with an investment exceeding USD 3 billion and a total IT capacity of 400MW, addressing energy scarcity issues that have constrained data center development in the region. The facility features advanced cooling technology designed to accommodate next-generation AI loads, positioning it as a key infrastructure provider for both Mexican and US markets in the context of technological nearshoring
- April 2025: AWS announced plans to invest USD 5 billion in Querétaro, Mexico, to establish a 'digital city' providing web services, data storage, and AI projects. The investment is projected to contribute USD 10 billion to the Mexican GDP over 15 years.
- March 2025: The AI Infrastructure Partnership (AIP), formed by major companies including NVIDIA and GE Vernova, announced plans to mobilize up to USD 100 billion for developing AI data centers and energy infrastructure globally, with Mexico identified as a potential beneficiary. The initiative aims to unlock USD 30 billion in initial capital, focusing on next-generation AI data centers and sustainable energy solutions to meet the demands of AI infrastructure
- February 2025: ODATA announced the energization of Mexico's largest data center campus, featuring a 400kV switching substation and new transmission lines developed in partnership with Ammper. This infrastructure investment addresses the critical power constraints in Querétaro, enabling the deployment of 300MW of IT capacity across five buildings on a three million square foot campus
- January 2025: CloudHQ commenced construction on power infrastructure for a new data center campus in Mexico, marking a significant expansion in the country's hyperscale capacity. This development reflects the growing trend of data center operators investing directly in power infrastructure to overcome grid constraints in key markets
Mexico Hyperscale Data Center Market Report Scope
Hyperscale data centers, also known as Enterprise Hyperscale facilities, are large-scale infrastructures owned and managed by the companies they support. These centers deliver a wide range of scalable applications and storage services to meet the needs of individuals and businesses. Designed for efficiency, they house thousands of servers alongside critical hardware like routers, switches, and storage disks. To ensure seamless operations, these facilities are equipped with advanced support systems, including power and cooling solutions, uninterruptible power supplies (UPS), and air distribution networks.
The Mexico Hyperscale Datacenter Market is Segmented by Data Center Type (Hyperscale Colocation, Enterprise/Hyperscale Self Build), By Service Type (IaaS ( Infrastructure-as-a-Service), PaaS ( Platform-as-a-Service), SaaS( Software-as-a-Service)), By End User (Cloud & IT, Telecom, Media & Entertainment, Government, BFSI, Manufacturing, E-Commerce, Other End User). The Report Offers the Market Size and Forecasts for all the Above Segments in Terms of USD (millions).
| By Data Center Type | Hyperscale Colocation |
| Enterprise/Hyperscale Self Build | |
| By Service Type | IaaS ( Infrastructure-as-a-Service) |
| PaaS ( Platform-as-a-Service) | |
| SaaS( Software-as-a-Service) | |
| By End User | Cloud & IT |
| Telecom | |
| Media & Entertainment | |
| Government | |
| BFSI | |
| Manufacturing | |
| E-Commerce | |
| Other End User |
| Hyperscale Colocation |
| Enterprise/Hyperscale Self Build |
| IaaS ( Infrastructure-as-a-Service) |
| PaaS ( Platform-as-a-Service) |
| SaaS( Software-as-a-Service) |
| Cloud & IT |
| Telecom |
| Media & Entertainment |
| Government |
| BFSI |
| Manufacturing |
| E-Commerce |
| Other End User |
Key Questions Answered in the Report
How big is the Mexico Hyperscale Data Center Market?
The Mexico Hyperscale Data Center Market size is expected to reach USD 1.37 billion in 2025 and grow at a CAGR of greater than 15% to reach USD 2.80 billion by 2030.
What is the current Mexico Hyperscale Data Center Market size?
In 2025, the Mexico Hyperscale Data Center Market size is expected to reach USD 1.37 billion.
What years does this Mexico Hyperscale Data Center Market cover, and what was the market size in 2024?
In 2024, the Mexico Hyperscale Data Center Market size was estimated at USD 1.16 billion. The report covers the Mexico Hyperscale Data Center Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Mexico Hyperscale Data Center Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
