Data Center Power Shifts: Mexico Rises Amid Sovereignty Concerns

The centralization of most of the world’s data centers is raising concerns about regulatory compliance and data sovereignty. Industry leaders and governments are advocating for a distributed model to enhance sovereignty, resilience, and sustainability, with the Mexican market being a possible global hub to overcome this struggle.

The digital ecosystem has traditionally centered around major economies, with the United States being home to over 60% of the global total. According to Statista, the country is home to 5,381 data centers. While such concentration offers operational efficiencies and scalability, it also presents systemic risks. Governments and enterprises increasingly perceive overreliance on a single geographic region as a liability, citing vulnerabilities related to regulatory compliance, data sovereignty, and resilience against cyber or political disruptions.

Emergence of New Data Center Markets: Mexico

Recent industry trends reflect a shift toward decentralized digital infrastructure. Driven by the need for lower latency, enhanced data processing capabilities, and energy sustainability, data centers are expanding beyond traditional hubs into emerging markets.

The Future of Jobs Report 2025 by the World Economic Forum indicates that 60% of companies consider decentralized infrastructure critical to their strategic growth. This has fueled a rise in data center investments across midsize cities and previously underutilized industrial zones.

In Latin America, Mexico ranks as the second-largest market for data center square footage and power capacity, following Brazil. Projections from the Mexican Data Center Association (MEXDC) suggest that cumulative investments in the Mexican data center sector will surpass US$9 billion by 2029. These developments are supporting the country’s broader technological transformation.

States like Nuevo Leon, Queretaro, Baja California, Aguascalientes, and Sonora are attracting infrastructure projects that aim to meet demand generated by trends like Internet of Things (IoT), 5G connectivity, and AI integration.

The growing demand for real-time data processing has become a critical driver for infrastructure expansion. By 2026, 58% of Mexican companies are expected to adopt cloud services intensively, according to industry estimates. This shift is expected to further accelerate the adoption of hybrid architectures that combine public, private, and edge computing resources, says Alvaro Villar, Regional Head of Sales, WeWork LATAM.

Sustainability considerations are also shaping site selection. Technology companies, including Google and Amazon, increasingly prioritize access to renewable energy when building new facilities. The reuse of legacy industrial sites — such as former factories and warehouses — also plays a role in minimizing the environmental footprint of new developments.

Furthermore, the distribution of data centers addresses regulatory and security concerns. By spreading operations across different jurisdictions, companies reduce exposure to localized risks such as compliance violations, geopolitical tensions, or infrastructure failures.

The growth of the data center industry is expected to generate over 14,688 indirect jobs in Mexico. This includes demand for professionals in engineering, cybersecurity, systems management, and energy operations. Talent availability has become a key factor in location decisions, as enterprises seek to build reliable support ecosystems for their digital operations.

Complementary infrastructure, such as coworking spaces, is facilitating this expansion. Companies like WeWork provide scalable environments for technical teams operating in emerging markets. These flexible workspaces help reduce upfront capital expenditures and support innovation by fostering collaboration among professionals from diverse sectors.

The centralization of global cloud infrastructure remains a critical issue for the digital economy. Industry leaders are responding with targeted decentralization strategies that seek to enhance regulatory compliance, operational continuity, and environmental sustainability. Mexico is emerging as a key player in this transition. Through regional investments, government support, and the mobilization of local talent, the country is positioning itself as a strategic hub for cloud and data center operations in Latin America.