Capitalizing Mexico's Data Center Advantage: Overcoming Hurdles

Q: How has DatacenterDynamics influenced the adoption of new technologies within the data center industry?

A: DatacenterDynamics is a global media and events company. Our website is the busiest resource for data center information globally, available in three languages: Spanish, Portuguese and English. Over our 25-year history, we have built an ecosystem of knowledge and networking through face-to-face events and training programs. This ecosystem supports the industry with valuable content, information, networking opportunities and cutting-edge training to help professionals embrace the technological trends necessary to meet future challenges. We provide a platform where professionals can develop, share knowledge and foster open innovation.

Q: What challenges does the data center industry face and how has DatacenterDynamics adapted to this ever-evolving landscape?

A: Data centers have emerged as star assets in the international real estate sector. The pandemic accelerated their adoption across various industries, notably e-commerce. However, there is a global shortage of data center infrastructure. The exponential growth in data generation within these centers is driving demand for resilient facilities capable of storing, processing and safeguarding information. Property investors are keenly investing in this sector due to its reliable cash flow and long-term contracts. 

The growth of this segment is primarily fueled by increased connectivity caused by more internet users and the proliferation of the Internet of Things and AI-powered tools. The market for data centers is projected to grow 10.9% annually between 2022 and 2030, reaching US$600 billion by 2030. However, there are four major challenges for the data center industry: power and cooling strategies, ideal operational size, sustainability and the scarcity of tech talent.

The server rack performance and power capacity reach about 40kW per rack, necessitating innovative cooling solutions to manage the resulting heat. Data center size is another critical challenge. Choosing the right location and building efficient data centers is pivotal but the site selection process is complex, as it must accommodate the necessary IT infrastructure to meet power, cooling and communication requirements. Sustainability is also a pressing concern, given the significant energy consumption and heat generation within data centers. However, the industry’s focus has shifted from improving energy efficiency to reducing greenhouse gas emissions. Challenges include the excessive consumption of freshwater for efficient cooling strategies. Finally, the shortage of skilled talent in the data center industry is evident, with 53% of operators struggling to find new talent and 42% facing retention challenges. 

Q: What training programs does DatacenterDynamics offer to address the shortage of talent within the data center industry?

A: in 2010, DatacenterDynamics launched the Academy Training Division, offering essential information on emerging technologies to data center professionals and fostering collaboration among them. Our comprehensive approach covers topics ranging from management and construction to operation and maintenance within data centers. Additionally, we recently introduced a new training program called "The Business of Data Center," designed to onboard a wide range of professionals, from technicians to financial, sales and marketing staff. We also collaborate with various industry associations globally, such as the Spanish Data Center Association and the Mexican Data Center Association. We work closely with these associations and engage in scholarship programs to attract top engineering talent from universities.

Q: What characteristics make Mexico an attractive location for data centers?

A: Mexico boasts the second-largest data center square meter capacity market in Latin America. Its strategic geographical location positions it as a vital gateway for connecting the data center economy with the US, Canada, Central America, the Caribbean and South America, significantly enhancing global connectivity. However, Mexico faces challenges related to energy distribution and accessibility, particularly for data centers. Additionally, the availability of renewable energy falls short of meeting data center demands. Despite these challenges, Queretaro has recently emerged as a potential data center hub, attracting potential investments from different countries.

Mexico has capitalized on data center investments over the past decade, driven by the expansion opportunities following its telecommunications reform. The recent growth is further fueled by cloud adoption within the data center market and the growing interest in technologies such as AI, the Internet of Things, big data and 5G across various industries, including finance, healthcare and gaming.

Q: What other major challenges does Mexico face in realizing its data center potential?

A: Besides addressing the four key challenges related to energy access within the industry, the Mexican Data Center Association focuses on sustainability, aiming to improve energy efficiency and increase the use of renewable energy sources within data centers. Another significant challenge Mexico faces in the current landscape is the diversity of data center regulations, which can vary widely from industry to industry and city to city. Standardizing these regulations throughout the country would enhance Mexico's competitive advantage and facilitate bureaucracy surrounding the design and construction of data centers across the country. 

Q: Why is it challenging to standardize data center regulations in Mexico?

A: Standardizing data center regulations is a complex endeavor due to the diverse interests and needs of each Mexican state and city. These regions develop regulations based on their specific requirements to attract future investments. Achieving a unified set of regulations for such a vast and diverse nation is inherently difficult: each state has its own agenda, making it challenging to harmonize policies on a national level.

Q: How has the first Data Center school benefited the data center industry in Mexico?

A: The Data center school offers specialized engineering programs for operating data centers. We aim to support the growth of the data center market in the country, collaborating with the Mexican Data Center Association and the Ministry of Sustainable Development of Queretaro and the Politecnica University of Queretaro. Our goal is to provide students with specialized and engaging training. We would like to demonstrate to the students that the data center industry is continuously expanding and has the potential to make a significant contribution to the country's economy. 

One major challenge is the universities’ curriculum. Unfortunately, universities update their education programs every four to six years, while the technological landscape evolves much more rapidly. Therefore, Mexican academies must adapt more swiftly to update educational content and teach the skills needed in the ever-evolving tech sector. Collaboration between public and private entities is crucial to staying up-to-date with technological trends.