Mexico Data Center Storage - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Mexico Data Center Storage Market size is estimated at USD 421.20 million in 2024, and is expected to reach USD 722.5 million by 2029, growing at a CAGR of 13.10% during the forecast period (2024-2029).

The wide growth of data center storage is significantly attributed to the increasing emphasis on the expansion of IT infrastructure. There are 38 IT clusters throughout the country offering software development, call centers, high-tech manufacturing, and engineering services. Mexico is following the global trend toward a service-centric IT industry, where most technologies are offered under a service contract or lease, leading to opportunities in Software as a Service (SaaS), Infrastructure as a Service (IaaS), and Platforms as a Service (PaaS). Such factors fuel the market’s demand.

Key Highlights

• Under Construction IT Load Capacity: The upcoming IT load capacity of the Mexican data center market is expected to reach 480 MW by 2029.
• Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 2.2 million sq. ft by 2029.
• Planned Racks: The country's total number of racks to be installed is expected to reach 120,000 units by 2029. Querétaro is expected to house the maximum number of racks by 2029.
• Planned Submarine Cables: There are around 11 submarine cable systems connecting Mexico, and many are under construction.

Mexico Data Center Storage Market Trends

IT and Telecom to Hold Significant Share

• The rollout of 5G networks is expected to strengthen the nation's digital economy and increase demand for high data center storage infrastructure. The arrival of 5G is expected to bring a major increase in speeds, low latencies, and an unforeseen level of network capabilities. This will set the stage for even more advanced and novel applications, enabling everything to be more connected in real time.
• 5G and high-speed flash storage are enabling emerging IoT use cases, leading to major market demand. As of April 2023, more than 68 million Telcel prepaid users were able to access the 5G Network with greater coverage throughout the country, with the benefits of the new technology being available to more than 80 million Telcel customers.
• The Mexican government intends to encourage internet connectivity across the country. The government announced a USD 400 million program to provide internet access across the country. The CompuApoyo initiative aims to encourage more Mexicans to use computers and the internet by bridging the so-called digital divide. This initiative aims to give every family in the nation access to a broadband connection, and the government is also expected to make computers and broadband services available to low-income families. The objective of CompuApoyo is to install computers and internet connections in 1.7 million homes.
• The demand for NVMe is increasing for SSD servers and storage appliances, which is expected to drive the market during the forecast period. This communication interface and driver provide a command set and feature set for PCIe-based SSDs with the objective of efficient performance and interoperability across a wide variety of corporate and client systems.

All-flash Storage to Hold Significant Growth

• All-flash arrays are evidently revolutionizing data center storage, offering cloud-like application consolidation and enhanced agility. The growth in data generated by the enterprise, coupled with the growing adoption of cloud technology, is expected to drive the country's market. Google has been investing in Latin America over the last 17 years, renewing its digital transformation with a five-year, USD 1.2 billion commitment to the Mexican market.
• With big data and analytics, data access and processing patterns demand higher storage performance and increased concurrency (big data aggravates data mobility issues). The NVMe-based SSD is gaining traction in the market studied. In Mexico, there is a rise in demand for big data developers.
• Further, with such enhanced capabilities, the NVMe is expected to support storage-class memory (SCM) products, like 3D Xpoint, to build SSDs faster than what is being offered currently on NAND drives.
• Fiber channels can be used to transport data from storage systems that use solid-state flash memory storage medium by transporting NVMe protocol commands. Due to the digital trend taken by government organizations, network connectivity is projected to expand, leading to growth in market demand. The Mexican government launched Red Troncal in 2018 as part of its goal to construct a "backbone network" across the country using up to 25,000 km of fiber.

Mexico Data Center Storage Industry Overview

The Mexican data center storage market is consolidated in nature and has gained a competitive edge in recent years. A few major players in the market are Dell Inc., Hewlett Packard Enterprise, and Huawei Technologies Co. Ltd. These players have a prominent market share and focus on expanding their customer base across the region. These companies leverage strategic collaborative initiatives to increase their market share and profitability.

• March 2024: Western Digital expanded its product lineup with the introduction of a 24 TB WD Red Pro mechanical hard drive designed specifically for NAS (network attached storage) applications. The company launched a 24 TB model earlier, targeted at enterprise and data center use.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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