Mexico’s Data Centers to See Tighter Environmental Regulations

The expansion of data centers in Mexico is set to encounter stricter regulations due to increasing concerns about their environmental impact, particularly regarding their carbon footprint and high energy consumption. 

“Increasing demand driven by application usage, artificial intelligence, 5G, sustainability requirements, supply chain disruptions, and global digitization is making data center operations more critical and complex,” according to a Wesco Anixter study. 

The surge in demand for data storage and processing in Mexico is largely fueled by sectors like video games, virtual and augmented reality, and the metaverse. The Mexican Association of Data Centers (MEXDC) estimates that the industry will require approximately 1,797 megawatts of energy over the next five years. This anticipated growth has led to heightened regulation aimed at addressing carbon footprint and managing energy use, as previously reported by MBN.

Francisco Tijerina, director of business development, Escala, highlighted to Forbes that data centers will face intensified regulatory scrutiny due to their environmental impact. He also noted the ongoing challenges developers face in optimizing space and managing costs.

“To tackle these challenges, data centers are adopting technological solutions to enhance energy efficiency and reduce environmental impact. Innovations like liquid cooling systems, which offer higher performance with lower energy consumption compared to traditional air cooling, and hydrogen cells, which provide emission-free backup power, are being implemented,” Tijerina said.

The push towards sustainability in the data center industry opens up opportunities for Mexico in the nearshoring context, as highlighted by Portal Ambiental. As global companies increasingly relocate their operations, focusing on energy sustainability becomes a competitive advantage. Data centers, crucial for advanced technologies like AI, cloud computing, and IoT, are also major energy consumers.

“If Mexico can integrate clean energy solutions into its data center infrastructure, it will attract companies committed to sustainability and enhance its position as a prime nearshoring destination,” according to Portal Ambiental.

The expected increase in data center energy capacity in Mexico—from 81 megawatts to over 1 gigawatt—requires a strong commitment to sustainability. Portal Ambiental stresses that collaboration between the private sector, regulatory bodies, and academic institutions is vital to promote renewable energy use, which currently makes up only 27.8% of the country’s electricity generation.

Green financing, which is gaining traction in Spain, could further boost data center sustainability. This type of financing supports projects that enhance energy efficiency, utilize renewable energy, and implement advanced technologies. 

“Aligning investments with environmental, social and governance (ESG) criteria through green financing enhances data center sustainability and attracts investors interested in making a positive environmental impact,” says Luca Marini, CEO, Lio DC, in an interview with Data Centers Dynamics.

However, the adoption of green financing in the data center industry also presents challenges. “The high upfront cost of sustainable technologies can be a hurdle for some companies, but the long-term savings on operating costs and improvements in profitability make it an increasingly attractive option,” Marini adds.

Data centers in Mexico currently consume around 305 megawatts. Of the estimated 1,492 megawatts needed over the next five years, 475.7 megawatts are allocated to projects under construction, and 1,017 megawatts to announced projects. This growing energy demand translates into an estimated investment of US$8.7 billion for the necessary infrastructure.

MEXDC also points out that Mexico is the second-largest market in Latin America for data centers in terms of square footage and energy capacity. There are currently 166 data centers operating in the country, with 73 new centers anticipated by 2029, mainly in the Bajio region and metropolitan areas,  as previously reported by MBN.