The data center market in Latin America is experiencing significant growth, with Mexico and the broader Latin American region becoming attractive locations for data center investments. This growth is driven by various factors, including increased internet penetration, digital transformation, and the need for data sovereignty.
Mexico: A Rising Star in Data Center Investments
Mexico’s data center market is witnessing a surge in investments, consolidating its position in the global market. The country’s strategic location, robust connectivity, and growing digital economy make it an ideal destination for data center operations.
Mexico’s data center market is expected to grow at a CAGR of 11.4% from 2021 to 2026, reaching a value of USD 1.9 billion by 2026. This growth is driven by the increasing demand for cloud services, digital transformation, and the adoption of advanced technologies such as AI and IoT.
Mexico’s government is also playing a crucial role in this growth. The government’s commitment to digital transformation and the promotion of IT development is attracting foreign investors. Furthermore, the government’s initiatives to improve the country’s connectivity, such as the Red Compartida project, are boosting the data center market.
Latin America: A Region of Opportunity
The data center market in Latin America is also on a growth trajectory. The market is expected to grow at a CAGR of 8.14% from 2022 to 2028, reaching a value of USD 8.81 billion by 2028. The power capacity in the Latin American data center market is expected to reach 247.1 MW by 2028, and the market is expected to reach 1.21 million square feet in terms of area.
Several key trends are driving this growth. The launch of 5G is fueling the deployment of edge data centers, while the adoption of renewable energy, the implementation of automation and artificial intelligence in data centers, and the adoption of advanced IT infrastructure are also key factors.
The adoption of cloud technologies is also a significant driver. Latin America is one of the fastest-growing regions in terms of technological development and innovation, and the adoption of the cloud is fueling data generation and the growth of the technology market. Major tech companies like Microsoft, Oracle, IBM, and Huawei have announced new cloud regions/availability zones in Latin America.
The data center market in Mexico and Latin America is growing rapidly, driven by digital transformation, increased internet penetration, and government initiatives. As the demand for cloud services and advanced technologies continues to rise, the region presents significant opportunities for data center operators and investors.
At Layer 9 Data Centers, we are excited about these developments and look forward to contributing to the growth of the data center market in Latin America. To learn more about our 96 MW campus in Bajio, Mexico, contact our team today.