Data Centers in Cuernavaca
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Cuernavaca – Emerging Digital Hub in Central Mexico
Cuernavaca is an emerging edge data center market in Mexico, ideal for enterprises requiring low-latency access to local business and population centers in the state of Morelos. Deploying infrastructure here provides a strategic alternative to the core Mexico City market, offering a balance of proximity and operational diversity. This location is well-suited for content delivery, hybrid cloud, and disaster recovery applications serving the region.
Cuernavaca: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good national and regional connectivity options. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest hubs are in Mexico City; private network extensions are available. |
| Power Cost | MXN $1.20-1.80/kWh | Industrial power costs are competitive for the region. |
| Disaster Risk | Moderate (4.9/10) | Primarily exposed to earthquake and flood risks common to Central Mexico. |
| Tax Incentives | Yes | Includes specific development bank credit packages for data center projects. |
| Sales Tax | 16% VAT – as of September 2025 | Standard national value-added tax rate applies. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As a developing market, Cuernavaca has focused connectivity with access to over a dozen national and regional carriers as of September 2025. The single facility in the market operates on a carrier-neutral basis, providing essential network choice for colocation customers.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Cuernavaca as of September 2025. Secure, private connections to major cloud providers like AWS, Google Cloud, and Microsoft Azure are established through dedicated circuits to interconnection hubs in Mexico City.
Internet Exchange Points (IXPs): Peering is primarily handled through private interconnects or via the IXP in Mexico City. Direct access to a local public IXP is not available, requiring traffic to transit through the national capital for most peering arrangements.
Bare Metal: Bare metal server options are available in the broader Central Mexico region, often provisioned out of Mexico City data centers. Providers like Hivelocity and Latitude.sh can serve customers in Cuernavaca, offering dedicated compute resources for performance-intensive workloads.
Power Analysis
Average Cost Of Power: Industrial electricity rates in the region typically range from MXN $1.20 to $1.80 per kWh as of September 2025. This competitive pricing structure makes the market attractive for compute-heavy deployments. Mexico's power generation is dominated by fossil fuels (~69%), with renewables (~26%) and nuclear (~5%) contributing to the mix.
Power Grid Reliability: The power grid supporting key industrial areas in Central Mexico is generally reliable. Data centers in the region are built with significant redundancy, including multi-megawatt generator and UPS system support, to ensure uptime during any grid disturbances.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Cuernavaca serve the city's commercial and industrial zones, including the CIVAC industrial park. This proximity is critical for local manufacturing, research, and tourism-related businesses that require reliable digital infrastructure.
Regional Market Reach: From Cuernavaca, organizations can effectively serve a population of several million across the state of Morelos and surrounding areas. It provides a solid point of presence for reaching end-users outside the immediate Mexico City metropolitan area with reduced latency.
Tax Advantage For Data Centers: Mexico offers specific financial incentives to encourage technology infrastructure investment. The government has provided development bank credit packages for new data center builds, which can significantly lower the capital expenditure for operators and their clients.
Natural Disaster Risk
Cuernavaca has a moderate natural disaster risk profile, with an overall INFORM score of 4.9 out of 10 as of September 2025. The assessment indicates that while the overall risk is manageable, specific hazards warrant consideration in infrastructure design and business continuity planning.
Key risks for the region include:
- Earthquake: High risk (8.2/10)
- River Flood: High risk (7.9/10)
- Tropical Cyclone: Moderate risk (7.1/10)
- Epidemic: Moderate risk (5.4/10)