Mexico Becomes Latin America’s Leading Data Center Investment Hub

Mexico’s data center sector is consolidating as a core pillar of Latin America’s digital infrastructure strategy, attracting record levels of foreign direct investment (FDI) and corporate commitments from hyperscale and cloud providers. The acceleration is driven by AI adoption, data sovereignty requirements, and the regional effects of nearshoring.

“Mexico is uniquely positioned to become a leader in the development of data centers for AI. The growth of Queretaro is a clear signal of investor confidence, but success will depend on strengthening supply chains and ensuring reliable access to energy,” reports Turner & Townsend.

The demand for cloud computing, AI processing, and secure data storage has made Mexico a strategic hub for regional infrastructure development. Over the last few years, the country has attracted multibillion-dollar commitments from technology corporations such as Amazon, Microsoft, Google, and CloudHQ, marking a shift from limited historical investment toward sustained long-term deployment.

According to Efren Paez, Senior Analyst, DPL Group, corporate demand for data-driven services, combined with national regulations requiring sensitive financial and health data to be stored domestically, has supported consistent growth in local data infrastructure. “The sector has been building momentum for two or three years, as conversations around data sovereignty and private-sector digitalization aligned with the rise of AI use cases,” says Paez.

This expansion reflects broader regional shifts linked to nearshoring. The International Monetary Fund (IMF) notes in its report Relocation of Global Value Chains: The Role of Mexico that the relocation of technology and telecommunications operations to Mexico is improving production efficiency and reinforcing trade integration with the United States.

Industry Dynamics and Investment Outlook

Mexico’s data center market is scaling up. According to the Turner & Townsend report, the country offers a combination of cost competitiveness, reliable connectivity, and geographic proximity that positions it as Latin America’s preferred destination for hyperscale deployment. The consultancy identifies Queretaro as the primary development corridor, followed by Nuevo Leon, Jalisco, and Sonora, which are rapidly attracting hyperscale operators, AI developers, and digital infrastructure providers.

Recent corporate announcements confirm this trajectory. Amazon has allocated US$5 billion for its local cloud region, Microsoft committed US$1.3 billion to AI and cloud expansion projects by 2025, and CloudHQ announced US$4.8 billion for a multi-facility complex in Queretaro. These projects are expected to stimulate secondary investment in logistics, power generation, and construction services.

The Mexican Data Center Association (MEXDC) projects that direct investment in the sector will reach US$9.19 billion over the next five years and contribute about 5.2% of national GDP by 2029. This growth will be reinforced by new design standards: developers are moving from traditional air-cooled facilities to high-density liquid-cooled architectures optimized for AI processing.

At the same time, the Mexican Association of the Information Technology Industry (AMITI) reports that 30% of manufacturing investment in Mexico is now directed toward information technologies, including semiconductor production. This convergence of digital infrastructure and advanced manufacturing is reshaping Mexico’s role in the global supply chain.

Challenges and Strategic Priorities

Despite its momentum, the industry faces significant structural challenges. Turner & Townsend notes that 83% of industry experts believe that local supply chains are not yet ready to meet the technical demands imposed by AI workloads. Energy and water availability remain key operational risks, particularly as facilities evolve toward higher capacity and sustainability requirements.

Paez emphasizes that workforce readiness is equally important. The expansion of data infrastructure requires specialized technical personnel in engineering, operations, and cybersecurity. He highlights that an increasing number of Mexican universities are introducing specialized programs in data center management, energy systems, and digital operations to meet future demand.

Gabriela Siller, Director of Economic Analysis, Banco Base, says that Mexico’s technology landscape is entering a new phase that extends beyond startups and fintechs. “This is not only about digital services. We are now seeing Mexico integrate into global value chains that include industrial software, semiconductors, and cloud infrastructure,” says Siller.

As nearshoring reshapes the continent’s industrial geography, Mexico’s digital infrastructure investments are expected to play a central role in enabling resilient supply chains and regional data autonomy. Between 2017 and 2023, Mexico gained a significant share of US imports of electronic products and semiconductors previously sourced from China, reinforcing its position as a strategic alternative for North American digital operations, reports MBN.

The continued influx of FDI into data infrastructure positions Mexico as a key regional node for AI development and digital transformation. The combination of hyperscale deployment, regulatory certainty, and nearshoring synergies is creating a high-value ecosystem that integrates energy, data, and manufacturing capabilities.

“With a strategic location, a growing market, and government policies that favor technological innovation, the country has the potential to become a key hub for digital services in the region,” Jose Carpos Corcuera, Head of Industrial Business Development, Cushman & Wakefield PDS, tells MBN. “However, it is important to continue developing and improving sustainability, cybersecurity, and infrastructure. These aspects are necessary to ensure that Mexico can maintain its leading role in the digital age."