Data Center Growth Needs More Generation Capacity

Mexico needs to build enough electricity and connectivity infrastructure to achieve 1.5GW of installed capacity by 2030 to take advantage of its data center investment potential, according to Adriana Rivera, Executive Director, Mexican Data Center Association (MEXDC).

Rivera stated that Mexico could attract up to US$18 billion in data center investments in the next five years and that the industry could contribute up to 5% of the country's GDP within the same period. Currently, data centers in Mexico operate at 250MW, with an additional 74MW under construction, which is about one-fifth of the needed capacity.

According to Rivera, each new data center project requires authorization from the National Energy Control Center (CENACE). It also requires "its own reinforcement works" that are later donated to CFE to benefit communities and schools. The supply chain for this includes transformers and electrical systems provided by firms such as Huawei, Schneider Electric, and WEG.

A document titled Snapshot Report: Mexico Data Center Market 2023–2027 identifies the lack of timely energy supply as a risk that could cause investment delays. It suggests strengthening CFE's transmission capabilities and coordinating permits with CENACE. The report also recommends gradual operational starts for projects as substations are completed.

Rivera also noted that new industrial parks are already requesting between 100 and 400MW of generation capacity to house data centers. The industry operates with closed-loop cooling systems to minimize water use. The Snapshot report identified 55 data centers in operation and 22 projects in the pipeline. 

The lack of immediate supply is pushing new locations like San Luis Potosi and Monterrey. Queretaro is highlighted as the industry's epicenter with 22 announced projects, including those from Microsoft, Amazon, and others. Growth is supported by cloud migration and the arrival of hyperscalers.