Data Centers in Cancún
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Cancún – Strategic Connectivity for Latin America
Cancún is a developing data center market poised to serve Mexico's vibrant tourism industry and the broader Caribbean region. It offers a crucial location for content delivery, cloud services, and enterprise applications that require low latency to end-users in the Yucatán Peninsula. This market is ideal for companies in hospitality, logistics, and digital media looking to improve performance and reliability for a growing digital economy.
Cancún: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | A developing market with strategic subsea cable landings. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest major hubs are Miami or Dallas; private connectivity options are available. |
| Power Cost | ~MXN$2.80/kWh – as of September 2025 | Competitive for the region, but grid mix relies heavily on fossil fuels. |
| Disaster Risk | Moderate (4.9/10) – as of September 2025 | High exposure to tropical cyclones, earthquakes, and flooding events. |
| Tax Incentives | Yes | Mexico offers development bank credit packages for specific data center projects. |
| Sales Tax | 16% VAT – as of September 2025 | Standard national value-added tax rate applies to services. |
Network & Connectivity Ecosystem
Cancún's connectivity is anchored by its position as a landing point for several subsea cables, providing a strategic link between Mexico, the U.S., and Central America. While not a primary interconnection hub, its ecosystem is sufficient for regional distribution.
Carrier Density & Carrier Neutrality The market has a growing number of national and regional carriers present, with at least one carrier-neutral facility available, as of September 2025. This provides essential redundancy and competitive pricing for transit and transport.
Direct Cloud On-Ramps There are no direct cloud on-ramps within Cancún's data centers, as of September 2025. Businesses requiring dedicated cloud access must connect to major hubs like Dallas or Miami. This is typically achieved via private network interconnects or dedicated wavelength services offered by local and international carriers.
Internet Exchange Points (IXPs) Public peering is limited within Cancún itself. Most network traffic is exchanged through private peering arrangements or routed through the national hub in Mexico City or international exchanges in the United States.
Bare Metal Bare metal server options are available in the region, primarily through providers that serve the broader Latin American market. Companies like Hivelocity offer dedicated server solutions that can be deployed to serve users in and around Cancún.
Power Analysis
Mexico's power infrastructure is established but faces challenges with reliability and a high dependence on fossil fuels. Data centers in Cancún are engineered to mitigate local grid inconsistencies.
Average Cost Of Power Industrial power costs are approximately MXN$2.80/kWh, as of September 2025. This competitive pricing can translate into a lower total cost of operation compared to more mature North American markets. The national energy mix consists of approximately 69% fossil fuels, 26% renewables, and 5% nuclear power.
Power Grid Reliability The power grid in Cancún's primary commercial zones is generally stable. However, like many coastal areas prone to severe weather, the grid is susceptible to disruptions. Data centers in the market are built with significant redundancy, including N+1 or 2N UPS systems and on-site generators with extensive fuel autonomy.
Market Access, Business & Tax Climate
Cancún's economic landscape, centered on tourism and logistics, makes it a logical point of presence for specific industries requiring low-latency digital services.
Proximity To Key Business Districts Local data centers are positioned to serve the high-tech needs of the Cancún Hotel Zone and the Cancún International Airport, one of the busiest in Latin America. This proximity is vital for hospitality platforms, logistics trackers, and retail applications where performance directly impacts customer experience.
Regional Market Reach A deployment in Cancún provides effective, low-latency coverage for the entire Yucatán Peninsula, including Mérida and the Riviera Maya. It also serves as a strategic digital gateway to Belize, Guatemala, and other nations in the Caribbean basin.
Tax Advantage For Data Centers Mexico actively encourages technology investment through various programs. The government has made specific credit packages from its development bank available for data center projects, helping to offset initial capital expenditures and support market growth.
Natural Disaster Risk
Cancún has a moderate overall disaster risk profile, with significant exposure to specific environmental threats due to its coastal location in the Caribbean.
The region has a moderate INFORM Risk score of 4.9 out of 10, as of September 2025. The primary natural hazards contributing to this score include:
- Earthquake: (8.2/10)
- River Flood: (7.9/10)
- Tropical Cyclone: (7.1/10)
- Coastal Flood: (6.3/10)
- Tsunami: (5.5/10)
Data center facilities in this market require purpose-built construction to withstand hurricane-force winds and mitigate risks from flooding and seismic activity.
