Mexico Colocation Market - Forecasts from 2024 to 2029

The Mexico colocation market is expected to grow at a CAGR of 9.61%, reaching a market size of US$2.74 billion in 2029 from US$1.441 billion in 2022.

Colocation data center facility provides renting space to business companies for servers as well as other computing hardware, thereby enabling them to remove in-house servers or data centers. It provides them access to advanced data center technology which offers security, continuity, and scalability for various applications and data systems.

Market Drivers

Investments in data centers bolster market growth.

Mexico is witnessing significant growth in its digital transformation and technological adoption in major sectors. Also, investment inflows in the data centers are further propelling the market demand for colocation services in Mexico. For instance, in August 2022, International Financial Corporation provided financial support of US$35 million to colocation provider ODATA for the construction of data centers in Querétaro, Mexico. Such investments will boost the development of colocation infrastructure in Mexico.

The booming 5G adoption has propelled the market growth.

Growing launches of 5G technologies are positively impacting the colocation market growth in Mexico. The introduction of 5G has created a boom in the volume of data transmission over the years which has created a demand for more data centers. The colocation data center provides a high level of security and operability to companies during data processing and storage. Mexico is witnessing various launches of 5G technology to promote digital transformation in the country. For instance, in May 2022, AT&T launched 5G networks in Mexico City, Monterrey, and Guadalajara to improve the browsing and interconnectivity experience of devices in the cities. Furthermore, Mexico’s America Movil, in February 2022, launched its 5G services in 18 major Mexico cities. Such 5G launches will boost demand for colocation data centers for effective data storage and processing, thereby augmenting the market growth.

Large enterprise is projected to show significant growth.

Based on enterprise size, the Mexico colocation market is segmented as small, medium, and large. The large enterprise is expected to grow at a significant rate during the forecast period of the Mexico colocation market, owing to the favourable investments by major conglomerates to promote digital transformation in the sector.

Key Developments

• In July 2022: colocation service provider Ascenty established its two new data centers namely Mexico 1 and Mexico 2 in Querétaro, Mexico. The Mexico 1 facility occupies a total area of 20,000 sqm with a power capacity of 21 MW, while the Mexico 2 facility with 24,000 sqm area with 31MW of capacity.

Segmentation:

By Type

• Retail
• Wholesale
• Hybrid

By Enterprise Size

• Small
• Medium
• Large

By Industry Vertical

• BFSI
• Communication Technology
• Education
• Healthcare
• Media and Entertainment
• Retail & E-Commerce
• Others