Mexico's Data Centers Face Soaring Energy Needs

The growing adoption of Artificial Intelligence (AI) tools, applications, and services in Mexico and Latin America has significantly increased the projected energy demand for the 73 data centers that will be installed in the country over the next five years, surpassing initial expectations by more than 230%. According to the Mexican Data Center Association (MEXDC), this industry is expected to consume approximately 1,492MWh over the next five years. However, Hitachi Energy calls this figure "conservative" and estimates that the industry's energy demand could reach up to 5,000MWh.

"MEXDC is only considering the installation of 73 data centers, but there are other major operators not included in the Association that have not been accounted for. It is possible that up to 100 new data centers could arrive in the country, demanding at least 5,000MWh of energy over the next five years," says Javier Nova, Head of the Data Center Segment, Hitachi Energy.

Nova points out that the 5,000MWh projection does not take into account the rapid adoption of Generative Artificial Intelligence tools nor hyperscale data center operators like those of Amazon, Apple, Facebook/Meta, Google, IBM, and Microsoft. "Amazon is the largest hyperscale data center operator worldwide and already has expansion plans in Mexico, as do other major industry players. The 5,000MW we estimate are still a conservative figure," he adds.

To meet the estimated energy demand of data centers in Mexico, it is calculated that both the government and the companies in this industry will need to invest at least US$8.732 billion. MEXDC suggests that a significant portion of this investment should be allocated to clean energy sources such as solar and wind, as by 2030, at least 35% of the energy consumed is expected to come from renewable sources.

"The priority for data centers operating in Mexico is to achieve their sustainability goals as soon as possible. However, this task has been complicated in the country, as many facilities still lack clarity about the source of the electricity they consume," Nova explained.

Data centers in Mexico currently consume around 305MW. Of the estimated 1,492MW estimated by MEXDC over the next five years, 475.7MW are allocated to projects under construction, and 1,017MW to announced projects, as previously reported by MBN.

Experts emphasize the importance of boosting this industry, not only because it is crucial for digitalization and the development of Artificial Intelligence, but also because it is expected to generate around 13,000 direct jobs and more than 55,000 indirect jobs in the country. Failing to create the right conditions would represent a significant missed opportunity for Mexico.

Data Centers in Latin America
The growing demand of energy is present not only in Mexico but in all of Latin America, where these investments are driving digital transformation, generating employment, and improving local infrastructure. However, they also bring environmental challenges related to resource consumption and the need for more responsibility in constructing these centers. In recent years, Latin America has attracted data center investments from technology giants eager to capitalize on the region's strategic geographic location and relatively low operating costs.

In Mexico, Queretaro has emerged as the main data center cluster in Mexico, attracting Central American developers due to its robust digital infrastructure and low-latency connections to the United States. Major operators such as Ascenty, ODATA, KIO Networks, Equinix, and Telmex have a significant presence, with Microsoft and Google Cloud further boosting the region’s growth. In Brazil, São Paulo stands out as the leading data center hub, benefiting from its access to key submarine cable routes and investments from major players like Microsoft, AWS, and Google. Chile is experiencing rapid growth in Santiago, driven by its renewable energy mix and the entry of companies like Ascenty and ODATA. In Colombia, Bogota has become the primary data center hub, supported by its superior digital infrastructure and investments from operators such as Equinix, ODATA, and AWS.