Data Centers in Mexico City

Mexico City – The Digital Gateway for Latin America

Executive Summary

Mexico City serves as the primary gateway for enterprises targeting the Mexican economy and the broader Latin American region. Its high-density fiber and modern facility footprint provide the low-latency performance required to reach tens of millions of users securely and efficiently.

Mexico City: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Carrier count: over 20, as of September 2025. The market features a mix of domestic incumbents and international players. This variety allows for competitive pricing and resilient path diversity for critical workloads.

Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions, as of September 2025. While no direct public on-ramps are hosted locally, connectivity to major platforms typically routes through Dallas via high-capacity fiber backbones. Local providers offer private network interconnections to bridge this gap with predictable performance.

Internet Exchange Points (IXPs): The IXP Mexico (Consorcio de Intercambio de Tráfico Internet) facilitates local peering to reduce latency for domestic traffic. Keeping local traffic within city boundaries avoids expensive backhaul to international exchange points.

Bare Metal: Services are available through providers like Latitude.sh to support rapid deployment needs. These options provide the performance of physical hardware with the flexibility of cloud consumption models.

Power Analysis

Average Cost Of Power: Industrial rates range from $0.11/kWh to $0.14/kWh, as of September 2025. The grid relies on a mix of fossil fuels and increasing renewable contributions. This pricing is competitive compared to major European markets but remains subject to local regulatory shifts.

Power Grid Reliability: The main data center corridors utilize redundant, well-engineered distribution networks. Most facilities rely on multi-substation support to ensure consistent uptime. Operators typically supplement this with on-site generation to manage any localized grid instability.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Facilities are strategically placed near Santa Fe and the central business district. This ensures minimal latency for the financial services and telecommunications sectors. Being near the corporate headquarters of major Mexican firms simplifies physical access for IT staff.

Regional Market Reach: Mexico City acts as the primary aggregation point for the country's 130 million residents. It is the logical point for digital services expanding across Spanish-speaking markets. Its location provides a central jumping-off point for traffic moving between North and South America.

Tax Advantage For Data Centers: Specialized credit packages through national development banks support large-scale infrastructure projects. These incentives help reduce the total cost of ownership for long-term deployments. This financial support makes the region a preferred choice for hyperscale and enterprise expansion.

Natural Disaster Risk

Moderate (4.9/10), as of September 2025.

The region experiences significant Earthquake (8.2) and River Flood (7.9) risks. Tropical Cyclone (7.1) activity affects regional operations, while Tsunami (5.5) and Coastal Flood (6.3) are indirect risks relevant only to national supply chains. Infrastructure is typically purpose-built with seismic dampening and elevated flooring to manage these environmental factors. Other hazards are minor or not listed.