MEXDC Announced a New Executive Board

The MEXDC appointed Juan Carlos Mondragon as president to consolidate industrial growth and address energy challenges. This leadership transition aims to strengthen strategic digital infrastructure and attract hyperscale investments to Mexico amid the rising demand for AI.

The Mexican Association of Data Centers (MEXDC) announced a new executive board to manage sustainable industry growth and technological evolution. This change marks a new phase for the organization after three years of foundational operations in Queretaro. The transition addresses the need to coordinate more than 160 companies within the ecosystem to meet unprecedented computational demands. 

"I assume the presidency of the Asociacion Mexicana de Data Centers with the commitment to strengthen an industry that is already key to the development of Mexico,” says Mondragon, Director of Expansion and Energy, ODATA. “Our goal is clear: to build a more solid, collaborative sector with an influential voice that drives investment, talent, and competitiveness throughout the country."

Since its inception three years ago, the MEXDC has functioned as the representative body for the sector. During this time, the organization established a dialogue with government entities, academic institutions, and related industries. These efforts focused on defining data centers as strategic infrastructure rather than traditional industrial real estate.

The current landscape in Mexico is shaped by nearshoring, connectivity with the United States, and the rapid expansion of digital services. Industry data indicates that the Mexican data center market maintains double-digit growth projections for the next few years. However, this expansion depends on resolving structural limitations regarding power supply, regulatory stability, and high-availability connectivity.

The new executive board includes Hector Sanchez, Vice President, Equinix Mexico; Eduardo Basulto, General Secretary, HostDime; Luis Uribe, Treasurer, Ascenty; and the continuation of Adriana Rivera, Executive Director, MEXDC. This team intends to reinforce the role of the association as a strategic actor that promotes sustainable development and cooperation between the public and private sectors.

Technical Implications of AI

The growth of AI is fundamentally altering the physical requirements of digital infrastructure. According to EY Mexico, data centers are no longer simple server warehouses but highly specialized facilities. These installations require significant amounts of energy, advanced cooling systems, and continuous 24-hour operation.

AI demands specialized processors and servers that consume more electricity and generate higher thermal levels than previous generations. Consequently, the international competition to attract digital infrastructure has shifted. Global investors now prioritize regions that can guarantee a stable and continuous power supply over those that offer only land availability or low labor costs.

In the United States, several states offer long-term tax incentives specifically designed for large-scale data center projects. These benefits include accelerated depreciation and preferential schemes linked to energy efficiency. Mexico seeks to position itself within this global competition through initiatives like the Plan México, which may offer tax breaks and incentives for productive assets.

Infrastructure and Energy Challenges

The rapid growth of the sector exerts pressure on an electrical infrastructure that already faces capacity and transmission challenges. In strategic regions such as the Bajio, Queretaro, and Nuevo Leon, some projects encounter delays associated with electrical interconnection. Developers have had to participate in investments related to substations and the reinforcement of transmission infrastructure to make new projects viable.

Stability is a critical requirement for these operations. Even a minor variation in power supply can affect global digital platforms and AI tools used by millions of users simultaneously. Furthermore, the expansion of digital infrastructure initiates discussions regarding water consumption, cooling systems, and the capacity of cities to absorb high-density technological projects.

Mondragon says the association will prioritize the search for joint solutions in energy matters and the development of local capabilities. The goal is to allow Mexico to utilize the full potential of the digital economy while maintaining sustainability and innovation.

Fiscal and Regulatory Landscape

The industry faces complex regulatory and fiscal challenges because data centers combine elements of technology, energy, and telecommunications. Alonso Díaz, Partner of International Tax and Transactions, EY Mexico, says that the distinction between income derived from real estate leasing and technological services is becoming less clear as business models evolve.

This ambiguity affects the treatment of specialized infrastructure and the structuring of investments through real estate vehicles such as FIBRAS. Investors monitor factors such as regulatory certainty and long-term operational stability when committing capital to projects with multi-decade horizons.

The MEXDC intends to continue strengthening institutional dialogue to create favorable conditions for investment. The organization views the digital economy as a primary driver for national development, provided that infrastructure and talent keep pace with market opportunities. Future efforts of the executive board will focus on sustainability and the implementation of best practices among its members.