According to Arizton research, the Mexico data center colocation market size was valued at USD 275 million in 2024 and is expected to reach USD 876 million by 2030, growing at a CAGR of 21.30% during the forecast period.
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Report Summary:
MARKET SIZE – COLOCATION REVENUE: USD 876 Million (2030)
CAGR – COLOCATION REVENUE: 21.30% (2024-2030)
MARKET SIZE – UTILIZED WHITE FLOOR AREA: 2.46 million sq. feet (2030)
MARKET SIZE – UTILIZED RACKS: 71.07 thousand units (2030)
MARKET SIZE – UTILIZED IT POWER CAPACITY: 550 MW (2030)
BASE YEAR: 2024
FORECAST YEAR: 2025-2030
NVIDIA AI server factory & BBVA’s Expanded AI Factory – Surge in AI Adoption Boosting Growth in Mexico
Mexico is rapidly establishing itself as a hub for artificial intelligence in Latin America, ranking seventh in the latest Latin American Artificial Intelligence Index (ILIA). The country is witnessing a surge in AI adoption across industries, from Foxconn’s upcoming NVIDIA AI server factory and BBVA’s expanded AI Factory for global innovation, to Microsoft’s initiative training over 1,000 teachers in AI and cybersecurity. Complemented by the Federal AI Law and smart city projects like AI-driven traffic management in Mexico City, these developments highlight Mexico strategic push toward innovation, workforce readiness, and practical AI deployment.
Shaping Mexico Colocation Landscape: Market Highlights
- Colocation demand in 2024 driven by new capacity additions targeting cloud tenants and growing local cloud regions preferring multi-tenant services.
- Enterprises accounted for the second-largest share (46%) of demand, driven by accelerated migration to public cloud platforms and reduced reliance on physical data center space.
- Telecom sector demand remained lower (7%) as edge facilities expand with 5G deployment, gradually reducing its share.
- By 2030, cloud and IT sectors expected to lead colocation demand, supported by AI/ML workloads, edge computing, and real-time analytics.
- Power and water constraints in major cities favor managed cloud and wholesale colocation, diminishing enterprise-owned data center demand over the forecast period.
Mexico Leads Digital Transformation as 108 Million Users Go Online
Mexico is transforming digitally as over 108 million internet users, more than 80% of the population, embrace online services, fueled by both public and private sector efforts. The government’s Digital Economy Strategy and the Internet for All initiative actively expand digital infrastructure, streamline access to services, and drive innovation across education, healthcare, and commerce. Complementing these initiatives, incentives like tax benefits and grants encourage businesses to adopt automation and advanced digital solutions. The recent launch of DE-CIX Internet Exchanges in Mexico City and Queretaro strengthens local network interconnections, reduces latency, and enhances digital experiences for businesses and citizens alike, positioning Mexico as a leading hub for connectivity and digital growth in Latin America.
Data Center Investments Soar on Rising Big Data & IoT Demand
Mexico is rapidly evolving as a strategic hub for technological innovation, with big data and IoT adoption driving new infrastructure demands. Strong mobile and internet penetration, combined with government programs like Mexico Digital and public-private IT investments, is accelerating the country’s digital transformation. This momentum is expanding the IoT market from $12 billion in 2025 to over $18 billion by 2029, fueling the need for advanced data center infrastructure. As Enterprises are increasingly deploying high-performance servers, converged and hyperconverged systems, and higher rack power densities, positioning Mexico as a scalable, data-driven economy ready to support bandwidth-heavy, compute-intensive workloads across industries.
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What Key Findings Will Our Research Analysis Reveal?
- What is the count of existing and upcoming colocation data center facilities in Mexico?
- How much MW of IT power capacity is likely to be utilized in Mexico by 2028?
- What factors are driving the Mexico data center colocation market?
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