Data Centers Key to Mexico's Economic Growth, Energy Transition

Data centers are not only fundamental for technological infrastructure, but also for the development of smart cities and the consolidation of a digital government, argued  the Mexican Data Center Association (MEXDC) during the "Economics and the Relevance of Data Centers in Mexico in Favor of Shared Prosperity" international forum. The event, held alongside the Senate's Economic Commission, brought together representatives from government, industry, and academia to discuss technological investment in the country and the challenges of the energy transition.

"Data centers are the backbone of technology infrastructure, and their growth is crucial to take advantage of opportunities such as nearshoring,"said Amet Novillo, President, MEXDC, during the event.

Technology infrastructure, especially data centers, experienced accelerated growth during the past year. Companies such as Microsoft and Amazon Web Services (AWS) established new data centers in the country, reinforcing Mexico's position as a growing hub for the industry.

Data centers also contribute to economic development and job creation, says MEXDC in a press release. In addition, the energy transition has had a direct impact on the development of this infrastructure, as data centers require large amounts of energy to operate.

Forum Details

During the event, Senators Imelda Castro and Emmanuel Reyes highlighted the importance of a joint approach by the government, the private sector, and academia to promote a technological development agenda. Castro pointed out that effective public policies, investments in education and research, and collaboration between sectors are fundamental for Mexico to achieve an economic growth of over 3% per year.

Reyes, who is also chairman of the Economy Commission, stressed that data regulation, cybersecurity, telecommunications, and tax incentives must be reviewed to attract foreign investment and consolidate the growth of the country's digital economy.

Novillo highlighted that the development of technological infrastructure in Mexico is aligned with the growing interest of foreign companies to invest in the country. He said  that the federal government's efforts to support the technology industry have been key to creating a favorable investment environment. 

 The data center industry in Mexico is highly competitive, but must be fortified by addressing existing challenges related to energy and talent availability, says Carlos Forero, COO, ODATA in Latin America.

“Another significant challenge we identify in the Mexican companies when adopting digital infrastructure solutions is the lack of technical skills and appropriate partners to customize these implementations,” Novillo previously told MBN. “According to our Global Technology Trends Study, 23% of companies identify gaps in their teams that hinder the effective use of these technologies.”

The energy transition should involve the collaborative efforts of the government, industry, and citizens, said Adriana Rivera, Executive Director, MEXDC. "The urgency of this transition lies in the need to replace fossil fuels with cleaner, more sustainable alternatives. In the data center industry, we are committed to this transition and there are already global efforts to use renewable energy in our operations," says Rivera.

To continue moving toward a digital and sustainable economy, Mexico should continue promoting investment in technological infrastructure, boosting the energy transition, and ensuring public policies that favor innovation and public-private collaboration.