Data Centers in Mexico

Mexico – Your Gateway to Latin America

Executive Summary

Mexico is the primary market for enterprises seeking to establish a digital footprint for Latin America or nearshore IT infrastructure from the United States. Its combination of robust international connectivity, a growing number of modern data centers, and favorable economic factors allows businesses to serve a massive domestic market and the broader region with low latency and competitive costs. This strategic location is essential for companies where speed to market and regional access drive revenue.

Mexico: At A Glance

Network & Connectivity Ecosystem

Mexico's network infrastructure is mature and growing, serving as a critical hub between North and South America. The data center market, particularly in the Querétaro region, has attracted significant investment, improving both domestic and international connectivity.

• Carrier Density & Carrier Neutrality: Over 30 unique network carriers operate within Mexico's primary data centers, as of September 2025. A healthy ecosystem of carrier-neutral facilities ensures competitive pricing and diverse routing options for redundancy.

• Direct Cloud On-Ramps: The country features over 5 dedicated cloud on-ramps providing direct, private access to 6 cloud regions, as of September 2025. Available providers include Alibaba Cloud, AWS, Google Cloud (GCP), and Oracle Cloud, enabling secure, high-performance hybrid cloud architectures.

• Internet Exchange Points (IXPs): The primary exchange, IXP.mx, is central to keeping local traffic within Mexico, which significantly reduces latency for domestic users and applications. Most large-scale peering occurs privately within major data centers.

• Bare Metal: Bare metal server options are widely available from multiple providers. Global suppliers like Hivelocity and Latitude.sh offer dedicated server solutions in Mexico for workloads demanding maximum performance and control.

Power Analysis

• Average Cost Of Power: Industrial electricity rates typically range from MXN$2.20–$3.50/kWh, as of September 2025. This cost structure allows for predictable operational expenses when scaling infrastructure in the region. The national energy mix is approximately 69% fossil fuels, 26% renewables, and 5% nuclear.

• Power Grid Reliability: Grid stability in key data center zones like Querétaro is reliable, supported by modern infrastructure investments. Most colocation facilities provide multi-substation support and are engineered with N+1 or 2N redundancy to guarantee uptime.

Market Access, Business & Tax Climate

• Proximity To Key Business Districts: Data centers, particularly the cluster in Querétaro, are strategically located to provide low-latency connectivity to Mexico City’s vast financial, manufacturing, and commercial sectors. This proximity is critical for financial services, e-commerce, and content delivery.

• Regional Market Reach: Mexico serves as an ideal hub for reaching over 125 million domestic consumers and acts as a digital gateway to Central and South America. Its geographic position makes it a premier nearshoring location for U.S.-based companies.

• Tax Advantage For Data Centers: Mexico offers specific tax incentives and financial programs for technology and infrastructure investments. These advantages can lower the initial capital expenditure and ongoing operational costs for new data center deployments, accelerating return on investment.

Natural Disaster Risk

Mexico has a moderate natural disaster risk profile, with a national score of 4.9 out of 10, as of September 2025. The primary risks are geologic and weather-related, with significant regional variation. Inland data center hubs like Querétaro mitigate many of the coastal threats.

The most significant national-level risks include:

• Earthquake: High risk (8.2/10), particularly along the Pacific coast and near Mexico City.
• River Flood: High risk (7.9/10) in various low-lying regions during rainy seasons.
• Tropical Cyclone: Significant risk (7.1/10) for both Pacific and Atlantic coastal areas.
• Coastal Flood: A material risk (6.3/10) in coastal communities.
• Tsunami: A notable risk (5.5/10) for Pacific coastal regions following seismic events.