The Mexico colocation market is estimated to be valued at US$743.886 million in 2020. 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. 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.

Based on enterprise size, the Mexico colocation market is segmented as a 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 favorable investments by major conglomerates to promote digital transformation in the sector. For instance, in February 2020, Microsoft announced an investment of US$1.1 billion in Mexico for the next five years. The investment came as a part of Mexico’s Digital Strategy and included the development of data centers too. Such investment will boost the colocation of data center infrastructure in Mexico’s ICT sector.

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.

Recent 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.

Covid-19 Impact on the Mexico Colocation Market

The lockdown restrictions to prevent the widespread COVID pandemic positively impacted the colocation services in Mexico, as the widespread adoption of remote working, and increased reliance on the internet created massive of data, which accelerated the need for digital transformation in Mexico.

Mexico Colocation Market Scope:

Segmentation

• By Type
  • Retail
  • Wholesale
  • Hybrid
• By Enterprise Size
  • Small
  • Medium
  • Large
• By Industry Vertical
  • BFSI
  • Communication & Technology
  • Education
  • Healthcare
  • Media & Entertainment
  • Retail & E-commerce
  • Others