KIO Announces US$70 Million Mexico City Data Center

KIO Data Centers announced a US$70 million investment to build MEX8, a new data center in Mexico City that will expand digital infrastructure, cloud capacity and low-latency services in one of the country’s most important demand hubs. The project reflects growing demand for resilient, proximity-based digital infrastructure in Mexico while also aligning with KIO’s broader strategy to strengthen its position in next-generation data storage.

KIO Data Centers has announced the start of construction of MEX8, a new US$70 million data center in Mexico City that will expand capacity for cloud, colocation and low-latency services in the capital. The facility will add 4MW of critical capacity and is already 60% pre-sold, underscoring the speed at which demand for colocation, cloud and low-latency digital services is growing in the Mexican market.

According to KIO, MEX8 is being built under international standards and energy-efficiency criteria, reflecting the growing importance of sustainability in data center design. The company says the project will reinforce digital infrastructure in the capital by improving service capacity, physical proximity to users and overall resilience for enterprises and technology platforms. El Economista reports that the project is expected to generate around 3,000 jobs and come online in 1Q27.

The Santa Fe project also reflects a broader shift in how digital infrastructure is being deployed in Mexico. Rather than concentrating all new capacity in major hyperscale hubs such as Queretaro, operators are increasingly investing in edge-style facilities closer to demand centers. KIO executives say proximity is becoming critical because milliseconds matter for applications such as AI inference, digital banking, cybersecurity, autonomous mobility and healthcare services. In that sense, MEX8 is infrastructure built for a more latency-sensitive economy.

Mexico City’s government appears eager to support that expansion. During the announcement,  Minister of Economic Development of Mexico City Manola Zabalza highlighted the strategic role of digital infrastructure in supporting the capital’s startup ecosystem and broader economic activity. She noted that more than 70% of the country’s startups are based in Mexico City, making reliable and scalable digital infrastructure increasingly necessary for everything from financial services to e-commerce and streaming platforms.

The investment also signals that the company sees room for further growth in the capital. Octavio Camarena, CEO, KIO, says the initial investment could increase as the company considers additional expansions in the area. Once MEX8 is completed, it will become part of an existing campus that together will reach 10MW of capacity in Mexico City. That gives KIO a stronger foothold in a market where demand for data processing, storage, and interconnection continues to rise alongside the broader digitalization trend in Mexico.

Sustainability is another important part of the project’s positioning. KIO says MEX8 will use a closed-loop cooling system that permanently reuses water, helping reduce consumption compared to traditional models. The company also said that 79% of the energy it currently uses comes from renewable sources, with plans to increase that share further. Those measures matter in a sector facing increasing scrutiny over power demand, water use and environmental performance, especially in dense urban markets such as Mexico City.

In Sep. 2025, the company announced a strategic alliance with US-based Lonestar to develop space-based data storage infrastructure, with commercial deployment targeted for 2027. The plan includes four ground stations in the United States, Mexico, the United Kingdom and Australia, as well as an initial constellation of six satellites offering 200 to 400 petabytes of storage capacity. Under the partnership, the Mexico-based station would serve as the Latin American hub, as previously reported by MBN.

That initiative is aimed initially at governments and institutions that require ultra-secure backup for critical data, including information tied to national security, healthcare and finance. KIO would provide terrestrial interconnection infrastructure, while Lonestar would handle the satellite-based storage layer. Company executives framed the project as a way to create a highly secure “air gap” between primary systems and backup environments, reducing exposure to cyberattacks, terrestrial disasters and other conventional risks.