Mexico Data Center Colocation Market Investment to Expand to USD 876M by 2030 | Queretaro Continues as Leading Hub for Data Center Expansion – Arizton

Mexico's data center colocation market is projected to expand significantly from USD 275 million in 2024 to USD 876 million by 2030, a 21.30% CAGR, according to Arizton research. This robust growth is fueled by escalating AI adoption, including major investments from firms like Foxconn and BBVA, coupled with broad digital transformation, increased big data/IoT demand, and supportive government initiatives. Queretaro continues as a leading hub, with market dynamics shifting towards cloud and wholesale colocation services, solidifying Mexico's role as a strategic digital innovation center in Latin America.

Analysis

Mexico's data center colocation market is projected for significant expansion, with Arizton research forecasting revenue to grow from USD 275 million in 2024 to USD 876 million by 2030, reflecting a robust compound annual growth rate (CAGR) of 21.30%. This growth is underpinned by a parallel increase in physical infrastructure, expected to reach 550 MW of utilized IT power capacity by 2030. The primary catalyst for this demand is a confluence of secular technology trends, including a surge in AI adoption, evidenced by investments from NVIDIA in an AI server factory and BBVA's expanded AI Factory. This is further supported by a favorable government posture, including a Federal AI Law and the "Internet for All" initiative, which has helped push internet penetration to over 80% of the population. The expansion of the IoT market, projected to exceed USD 18 billion by 2029, is also a key driver, increasing the need for high-density, compute-intensive infrastructure. The market structure is concurrently evolving; while enterprises currently represent 46% of demand, the trend is a migration towards public cloud platforms. By 2030, demand is expected to be led by cloud and IT sectors, driven by AI/ML workloads. This shift, combined with power and water constraints in major cities, favors wholesale colocation models and diminishes the long-term viability of enterprise-owned data centers, with Queretaro solidifying its position as the central hub for this expansion.

Key Decisions for Investors

• Given the projected 21.30% CAGR through 2030, investors should evaluate opportunities for thematic exposure to the Mexican data center and digital infrastructure ecosystem, which is benefiting from powerful secular tailwinds in AI, cloud adoption, and supportive government policy.
• Consider the second-order effects on publicly traded technology firms like NVIDIA, Microsoft, and BBVA, whose strategic investments in Mexico's AI and digital services are both driving and benefiting from this infrastructure build-out, potentially creating a significant growth vector for their Latin American operations.
• When assessing direct investments in data center operators, it may be prudent to favor large-scale wholesale colocation providers positioned to capture demand from hyperscale cloud and AI clients, as the market is shifting away from smaller, enterprise-focused facilities due to both demand trends and infrastructure constraints.