Mexico Colocation Market - Strategic Insights and Forecasts (2026-2031)

The Mexico Colocation market is forecast to grow at a CAGR of 12.7%, reaching USD 5.04 billion in 2031 from USD 2.52 billion in 2026.

Mexico is witnessing a rise in demand for IT infrastructure and cloud computing, which has bolstered the demand for effective data storage and management. Colocation data centers cater to the diversified needs of companies regarding data processing, storage, and security, owing to which it is forming an integral part of the technological revolution in Mexico.

Mexico Colocation Market Growth Drivers:

• Investments in data centers will augment the 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 centres in Querétaro, Mexico. The investment forms a stepping stone towards the development and expansion of colocation services in Mexico. 

Likewise, in February 2024, Amazon Web Services announced plans to launch its “ACW Infrastructure” in Mexico by early 2025. The infrastructure would provide enterprises, startups, the government as well as non-profit organizations to manage their applications via data centers in Mexico.  

• The booming 5G adoption has propelled the market growth.

Favorable investment in the deployment of 5G technologies is positively impacting the colocation market growth in Mexico since the adoption of high-speed standalone bandwidth would increase the overall data volume, inclusive of both commercial and personal data. 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 Mexican cities. Such 5G launches will boost demand for colocation data centers for effective data storage and processing, thereby augmenting the market growth.

• A large enterprise is projected to show significant growth.

By enterprise size, the Mexico colocation market is analyzed into small, medium, and large enterprises, in which the large enterprise is predicted to account for a significant market share, fueled by the ongoing strategic mergers and collaboration of international conglomerates with the domestic firms. Additionally, Mexico also harbors major Telecom brands, namely Claro, and retail brands such as Bodega Aurrera, which have active participation in their business expansion across Mexico. 

Mexico Colocation Market Key Developments:

• In July 2022: Ascenty established “Mexico 1” and “Mexico 2” data centers in Querétaro, Mexico, with a total investment of BRL1 billion. The facility features a high-performance cooling system and is connected to Ascenty’s 100% underground optical fiber network. 

• In June 2022: H5 Data Centers acquired an additional 2,25,000 square-foot facility in downtown Albuquerque, which is one of the key interconnection points of New Mexico and would provide rental storage spaces for various industry verticals. 

Mexico Colocation Market Scope: