An informative Q&A with the president of the Mexican Association of Data Centers shows what’s making Mexico a primo destination for data center infrastructure.
Equinix, Aligned, AWS, KIO, Microsoft Azure and Google all have data centers in Mexico, which at present hosts approximately 279 megawatts (MW) of operational data center capacity. According to the Mexican Association of Data Centers (MEXDC), another 205 MW is under construction, and more than 1,730 MW of future capacity is planned.
This exclusive interview Juan Carlos Mondragón, president of MEXDC, details what exactly is bringing operators to the country.
Querétaro’s data center inventory has grown significantly in recent years. What factors have contributed to the industry’s growth in the region?
Mondragón: From MEXDC’s perspective, Querétaro is a clear example of how multiple factors can converge to create a highly competitive ecosystem for digital infrastructure development.
The state has established itself as Mexico’s leading data center hub thanks to several key advantages: strategic connectivity, proximity to Mexico City, availability of industrial land, geological stability, and access to major fiber-optic corridors. These attributes have made Querétaro an attractive destination for investment, and today it accounts for approximately 72% of the country’s operational data center capacity, creating a strong momentum effect that continues to attract new projects and capital.
Querétaro has successfully built a unique ecosystem that combines connectivity, specialized talent, and investment certainty. These conditions have enabled it to become Mexico’s primary data center hub and one of the most important in Latin America. At the same time, demand continues to exceed installed capacity, a challenge that MEXDC is actively addressing in collaboration with Mexico’s Federal Electricity Commission (CFE) to increase energy availability both in Querétaro and in other states.
Which cities or metropolitan areas do you believe will emerge as Mexico’s next major data center hubs?
Mondragón: From MEXDC’s perspective, the next phase of industry expansion will not be concentrated in a single region. Mexico has the potential to develop several strategically distributed digital infrastructure hubs across the country.
We see significant opportunities in Nuevo León, Jalisco, Guanajuato, Hidalgo, and the State of Mexico, as well as in other markets that offer favorable conditions in terms of connectivity and energy access.
However, industry experience suggests that future hubs will no longer be defined solely by geography. In MEXDC’s view, the states that successfully combine reliable energy supply, transmission infrastructure, regulatory certainty, and access to skilled talent will be the ones that capture the next wave of investment. The future of the industry will depend on comprehensive planning that aligns urban development, energy infrastructure, and digitalization.
“Mexico has firmly established itself as one of the most attractive markets for digital infrastructure development in Latin America.”
— Juan Carlos Mondragón, President, Mexican Association of Data Centers
How prepared is Mexico’s workforce to meet the demand generated by new technology infrastructure? Are there talent development trends that support the growth of the data center industry nationwide?
Mondragón: For MEXDC, one of Mexico’s greatest assets is its talent base. The country benefits from a strong pool of professionals in engineering, information technology, telecommunications, and advanced manufacturing, creating highly favorable conditions for the development and operation of world-class digital infrastructure.
In addition, the data center industry is creating new opportunities for professional specialization. According to industry projections, more than 133,000 jobs are expected to be generated through the construction and operation of these projects.
What we are observing at MEXDC is a clear evolution toward highly specialized disciplines such as electrical systems, advanced cooling technologies, critical infrastructure operations, automation, and artificial intelligence. This demonstrates that the data center industry not only attracts investment but also drives human capital development and strengthens Mexico’s technological competitiveness.
What measures are the Mexican government and other stakeholders taking to ensure that the national power grid can support a growing number of data center projects?
Mondragón: Energy infrastructure is undoubtedly the industry’s most significant challenge. Today, the issue is not a lack of power generation, but rather the capacity to deliver electricity through sufficient transmission and distribution networks, interconnection systems, and substations.
The encouraging news is that there is growing recognition that data centers constitute strategic infrastructure for the country. Among the initiatives that have been announced are the strengthening of Mexico’s power system through the addition of new generation capacity, significant investments in transmission infrastructure, and mechanisms aimed at facilitating energy-intensive projects.
We have established a close working relationship with Mexico’s Federal Electricity Commission (CFE), which will undoubtedly provide valuable insights for planning the industry’s future growth. We believe that collaboration among government authorities, utilities, developers, and investors will be essential to ensure that the expansion of the digital economy is accompanied by the energy infrastructure required to support it.
Industry projections indicate that data center development in Mexico could generate more than USD $82.5 billion in economic impact through 2031.
Are there technologies or business practices that companies are implementing to reduce water consumption in the data centers being built in Mexico?
Mondragón: Yes. In fact, one of the most important transformations currently taking place within the data center industry is the reduction of water consumption through advanced cooling technologies.
For many years, evaporative cooling systems relied heavily on water as a core component of their operation. Today, however, new facilities are increasingly deploying closed-loop systems, liquid cooling, direct-to-chip cooling, immersion cooling, and free-cooling technologies. These solutions significantly improve cooling efficiency while dramatically reducing water consumption. Existing facilities are also being retrofitted with these technologies, which in many cases allow operations to function with minimal or virtually no water use for cooling purposes.
From MEXDC’s perspective, it is important to be clear about one point: the industry fully understands the concerns surrounding water availability, particularly in regions experiencing water stress. As a result, today’s projects are not being designed under the same assumptions that existed two decades ago. Water efficiency has become a core design, investment, and operational criterion, just as important as energy availability and connectivity.
Furthermore, leading companies in the sector are implementing measurable sustainability metrics, continuous monitoring of water consumption, treated water reuse programs, and international performance indicators such as Water Usage Effectiveness (WUE), which provides a precise measure of how much water a facility uses to support its digital operations.
The reality is that the industry is steadily evolving toward increasingly efficient operating models. At MEXDC, we firmly believe that the growth of data centers in Mexico should not be framed as a choice between economic development and sustainability. The technologies available today make it possible to advance both objectives simultaneously. The challenge is helping society understand that data centers will not place additional stress on local aquifers.
What would you say to companies that are considering building a data center or hyperscale facility in Mexico?
Mondragón: MEXDC’s message to companies evaluating investment opportunities in Mexico is very positive.
Mexico has firmly established itself as one of the most attractive markets for digital infrastructure development in Latin America. Its strategic location, integration with North America, growing demand for cloud services and artificial intelligence, and the ongoing nearshoring trend create exceptional conditions for data center investment.
Industry projections indicate that data center development could generate more than USD $82.5 billion in economic impact over the coming years, highlighting the scale of the opportunity.
At the same time, MEXDC believes that the long-term success of these investments will increasingly depend on factors such as energy availability, sustainability, connectivity, and regulatory certainty. Mexico has already succeeded in attracting the attention of global investors; the next step is to consolidate that position through effective execution and strong coordination among all stakeholders.
Our conviction is that data centers are no longer simply technology infrastructure. They are strategic infrastructure that underpins Mexico’s competitiveness, innovation, and economic growth.
