Data Centers in Cuernavaca
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Cuernavaca – Strategic Infrastructure for Central Mexico
Executive Summary
Cuernavaca provides a focused data center market for organizations requiring a strategic presence in central Mexico. This market is ideal for enterprises serving the state of Morelos or seeking a disaster recovery location outside the primary Mexico City hub, ensuring uptime and performance for regional operations.
Cuernavaca: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good national and regional connectivity with potential for future expansion. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access requires network extension to hubs like Mexico City or Querétaro. |
| Power Cost | MXN$2.50–MXN$3.50/kWh | Costs are competitive for the region, but the grid mix is primarily fossil fuels. |
| Disaster Risk | Moderate (4.9/10) | Primary risks include earthquake, river flood, and tropical cyclone activity. |
| Tax Incentives | Yes | Includes a development bank credit package for specific data center projects. |
| Sales Tax | 16% VAT – as of September 2025 | Standard Value Added Tax is applied to colocation and connectivity services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality
As of September 2025, the Cuernavaca market provides access to over 10 national and regional carriers. While a developing market, it offers resilient connectivity options suitable for production and disaster recovery workloads.
Direct Cloud On-Ramps
As of September 2025, there are no direct public cloud on-ramps located in Cuernavaca. Businesses require private network extensions or wavelength services to connect to cloud provider fabrics in major hubs like Mexico City or Querétaro.
Internet Exchange Points (IXPs)
Public peering is handled through the national exchange point in Mexico City. Most local traffic exchange in Cuernavaca relies on private peering arrangements between carriers operating in the region.
Bare Metal
Bare metal services are available, often provisioned through providers with a presence in the broader central Mexico region. Custom server solutions can be sourced from providers like Latitude.sh for deployment into local facilities.
Power Analysis
Average Cost Of Power
The average cost for industrial power in the Cuernavaca area ranges from MXN$2.50–MXN$3.50/kWh, as of September 2025. This pricing is competitive for central Mexico, making large-scale deployments financially viable, although it is subject to market fluctuations. The national energy portfolio is approximately 69% fossil fuels, 26% renewables, and 5% nuclear.
Power Grid Reliability
The power grid supporting Cuernavaca's commercial districts is generally stable. Data centers in the area are engineered with significant redundancy, including multi-megawatt UPS systems and on-site generation, to meet modern uptime requirements.
Market Access, Business & Tax Climate
Proximity To Key Business Districts
Data centers in Cuernavaca are strategically located to serve the city's tourism, manufacturing, and educational sectors. The location provides low-latency access for businesses operating within the state of Morelos.
Regional Market Reach
Cuernavaca serves as an effective hub for reaching the population of central Mexico, south of the capital. It offers a viable alternative to Mexico City for applications that are latency-sensitive for users in Morelos and surrounding states.
Tax Advantage For Data Centers
Mexico offers specific financial incentives for technology infrastructure projects, including data centers. These programs can include credit packages from development banks, helping to reduce the initial capital investment for new builds or major expansions.
Natural Disaster Risk
Cuernavaca has a moderate overall disaster risk profile, with a rating of 4.9 out of 10 as of September 2025. The primary natural hazards requiring mitigation are earthquakes, given the region's seismic activity, along with significant risks from river floods and tropical cyclones. Data center infrastructure in the region is typically designed to withstand these specific environmental threats.
