Sustainability, AI Lead Mexico’s Data Center Growth: MEXDC

Sustainability, technological innovation, location diversification, talent, and favorable regulation are key to boost the data center industry in Mexico, reports the Mexican Data Center Association (MEXDC).

"The key is to follow these trends, as technology is constantly evolving. Those who embrace them will be better positioned to lead the way to a more efficient and sustainable future," says Adriana Rivera, Executive Director, MEXDC.

Mexico’s data center industry is going through an inflection point driven by digital transformation, the growing demand for technology services, and the global commitment to the UN Sustainable Development Goals. MEXDC’s "Data Center Market in Mexico" study reports that the main challenges within the industry include improving infrastructure, reducing the digital divide, and adopting sustainable practices.

"The demand for digital transformation accelerated rapidly over the past four years, driven especially by the pandemic. During that period, the need to work remotely, transact online, and consume digital content increased exponentially. This puts significant pressure on interconnection capacity and data center space," says Amet Novillo, President, MEXDC, to MBN.

Trends for 2025

The adoption of technologies such as liquid cooling and waste heat harvesting is transforming operational practices in data centers. These innovations enable more efficient thermal management, significantly reducing energy consumption. Likewise, the integration of renewable energy sources, such as solar and wind, contributes to the decarbonization of the sector, aligning with global sustainability goals.

The industry is also readily adopting AI, reports MEXDC. According to Novillo, "95% of leaders within the data center industry in Mexico plan to use AI in their operations, 92% in cybersecurity, prioritizing real-time threat detection and response in order to improve the resilience of digital infrastructures, and 89% in R&D." He adds that 24% of decision-makers express uncertainty about how to incorporate these technologies into their infrastructure.

By optimizing operational and energy efficiency, AI can contribute to sustainability goals, says MEXDC. Advanced algorithms dynamically adjust cooling and power distribution systems according to demand, minimizing waste, reducing costs, and enabling preventive maintenance.

The industry is exploring new regions in Mexico for the installation of data centers, favoring areas with optimal conditions for technological expansion, says MEXDC. Queretaro, Mexico City, and Nuevo Leon are leading the way in digitalization, while states such as Baja California and Aguascalientes show potential for development, according to MEXDC. This diversified approach allows taking advantage of natural cooling technologies and facilitates future expansion.

In addition, companies such as Google,  Microsoft, and Amazon Web Services (AWS) have established new data centers in the country, reinforcing both Mexico's position as a growing hub for the industry and the socio-economic impact of the industry on Mexican soil. AWS, for example, recently announced a US $5 billion investment in Mexico over the next 15 years.

The industry is expected to generate 14,688 indirect jobs in the coming years, but might face challenges in acquiring the necessary specialized talent. To address this problem, MEXDC suggests attracting professionals from related sectors, implementing technical training programs, and building collaborations with educational institutions to close the skills gap.

The MEXDC says that a clear and predictable regulatory framework is crucial to attracting investment. "Simplification of procedures and incentives to adopt sustainable technologies can boost the sector. Collaboration between the public, private, and academic sectors will be essential to create policies that promote sustainable growth and international competitiveness," reads the MEXDC document.