Data Centers in Mexico

Mexico – Powering Nearshore Digital Infrastructure

Executive Summary

Mexico is a primary hub for companies requiring low-latency access to North American and Latin American markets. Its rapidly growing digital infrastructure, including significant investment in new data centers and international fiber, makes it a strategic choice for disaster recovery, content delivery, and nearshoring IT operations. This market provides a powerful combination of geographic proximity to the US and a large, expanding domestic consumer base.

Mexico: At A Glance

Network & Connectivity Ecosystem

Mexico's connectivity is solid, anchored by strong subsea cable landings on both its Pacific and Gulf coasts, ensuring redundant paths to the global internet.

Carrier Density & Carrier Neutrality: Over 30 carriers operate in Mexico, as of September 2025. The market supports a healthy ecosystem of carrier-neutral facilities, giving customers diverse options for local and international connectivity.

Direct Cloud On-Ramps: Over 5 direct on-ramps provide dedicated access to 6 major 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 Mexico City Internet Exchange Point (MEX-IX) is central to the country's peering ecosystem, reducing latency for domestic traffic. Most large-scale peering occurs here or through private network interconnects within major data centers.

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

Power Analysis

Average Cost Of Power: Industrial electricity rates typically range from MXN$2.80 to $3.75 per kWh, as of September 2025. This pricing allows for predictable operational expense modeling for high-density deployments.

Power Grid Reliability: The national power grid is reliable, particularly in the central regions like Querétaro, which have become data center hotspots. Facilities in these corridors are engineered with multi-substation support and significant on-site redundant power generation to ensure high levels of uptime. The national energy mix consists of approximately 69% fossil fuels, 26% renewables, and 5% nuclear.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are concentrated near Mexico City, the country's financial and commercial heart, and Querétaro, a designated industrial and technology hub. This proximity provides low-latency connectivity essential for financial services, manufacturing, and logistics industries.

Regional Market Reach: Deploying in Mexico provides excellent reach to a domestic market of over 125 million people. Its strategic location also makes it an ideal digital gateway for serving Central America and the broader Latin American region.

Tax Advantage For Data Centers: Mexico offers specific incentives, including a development bank credit package aimed at fostering data center investment. These programs are designed to lower the significant upfront capital required for building or expanding digital infrastructure.

Natural Disaster Risk

Mexico has a Moderate overall disaster risk profile, with a national score of 4.9 out of 10, as of September 2025. While the country is exposed to several natural hazards, risk levels vary significantly by region, making careful site selection essential.

The most prominent natural hazards for the country as a whole include:

• Earthquake (8.2/10)
• River Flood (7.9/10)
• Tropical Cyclone (7.1/10)
• Coastal Flood (6.3/10)

Key data center markets like Querétaro are located inland, which helps mitigate direct risks from cyclones and coastal events. All modern data center construction is built to high seismic standards.