The growth of AI is driving the country's data center infrastructure, which will lead to increased demand for bandwidth and interconnection capacity, according to data center industry insiders.
The growth of artificial intelligence (AI) workloads is driving a transformation in data center infrastructure in Mexico and around the world.
A study by Ciena and Censuswide shows that 43% of new data center installations in the country will need to be dedicated to supporting AI workloads, reflecting a global trend toward increasing bandwidth and data center interconnection (DCI) capacity.
Growth in demand
The survey, conducted among more than 1,300 data center decision-makers across 13 countries, highlights that 53% of experts believe that AI will be the largest source of demand for DCI infrastructure in the next 2 to 3 years, above cloud computing (51%) and big data analytics (44%).
According to the study, 79% of data center experts in Mexico anticipate an increase of at least sixfold in demand for data center interconnection bandwidth over the next five years. This growth is due to the need for greater data transmission capacity for training and inference of AI models.
Globally, 87% of respondents believe they will need 800 Gb/s or more per wavelength of bandwidth to meet growing interconnection demands. This percentage is identical in Mexico, indicating that the country is aligned with global trends in AI infrastructure requirements.
Brazil
Brazil, one of the leading data center markets in Latin America, is showing even more rapid growth in AI infrastructure adoption. According to the study, 46% of new data centers in the country will be focused on AI workloads, surpassing Mexico by three percentage points.
74% of Brazilian experts anticipate that demand for data center interconnection bandwidth will grow at least sixfold over the next five years. Furthermore, 91% believe that 800 Gb/s or more per wavelength will be needed to meet the sector's needs.
Challenges for the sector
Despite the sector's growth, the Mexican Data Center Association (MexDC) warns that access to energy and a lack of coordination between different levels of government could jeopardize future investments in data centers in Mexico. The industry projects direct investments of $9.2 billion and indirect investments of $27.5 billion through 2029. However, to achieve these investments, an additional power supply of at least 1,200 megawatts is required.
Currently, available data center capacity in Mexico is 300 megawatts, although the industry estimates that 1,500 megawatts or 1.5 gigawatts will be needed to meet projected demand over the next five years.
The MexDC has recognized the Mexican government's efforts to expand energy generation and transmission capacity, but emphasizes the need to update the regulatory framework to create favorable conditions for investment.
Since 2019, the data center industry has experienced significant growth in Mexico, with Querétaro and the Bajío region serving as key development centers. Companies such as AWS, Google, and OData have invested in this area, leading to the concentration of at least 15 companies in the sector in recent years. However, demand growth has outpaced existing electrical infrastructure capacity, leading companies to apply for permits to increase available capacity.
To achieve the goal of 70 new data centers by 2029, it is estimated that an investment in electrical infrastructure of at least $8.8 billion will be required. Without a coordinated strategy across different levels of government, delays in infrastructure authorization could hinder the progress of these projects, which in turn would impact the development of Artificial Intelligence applications.
