What is Behind Mexico's Data Centre Growth Delays?

Procurement and supply chain leaders evaluating Mexico's data centre sector face an unusual challenge: the infrastructure they need to power their digital investments may not be available when they need it.

Mexico's data centre capacity has surged from 115.5MW in January 2024 to nearly 280MW today, according to the Mexican Data Centre Association (MEXDC). That represents growth of around 142% in just two years years.

Yet behind these impressive figures lies a procurement bottleneck that could reshape sourcing strategies across Latin America.

Energy coordination remains elusive

The MEXDC has attempted to engage the Mexican Energy Ministry to jointly plan for the sector's electricity needs, but was unsuccessful in these efforts according to a statement marking its third anniversary.

For procurement professionals, this lack of coordination between industry growth and public infrastructure planning creates uncertainty around project timelines, capital deployment and vendor selection.

Meanwhile, neighbouring nations are building their data centre portfolios, prompting some procurement teams to reassess their location strategies.

Private funding fills infrastructure gaps

The procurement challenge centres on a disconnect between rapid industry scaling and the state bodies that control critical infrastructure access.

Grid operator CENACE and state utility CFE manage the systems that data centre operators depend upon, yet no formal framework exists to coordinate their expansion with private sector demand.

As a result, procurement teams are sourcing and funding their own electrical infrastructure solutions. The MEXDC estimates roughly US$340m is being invested in dedicated electrical infrastructure in the Bajío region alone.

This represents a substantial shift in procurement strategy. Rather than purchasing connectivity to existing public infrastructure, organisations are sourcing complete power systems as a prerequisite to their core data centre investments.

"The main constraint on new projects is no longer demand or capital, but the infrastructure required to make them viable," the MEXDC said in a statement, citing shortcomings in power supply, network robustness and regulatory timelines.

For procurement functions, this transforms energy from a utility purchase into a capital infrastructure project with three-year lead times and multi-million dollar budgets.

Brazil currently leads the Latin American data centre market with more than 900MW of installed capacity, serving a population of 213 million. Chile has reached 258.5MW with just 20 million inhabitants.

Mexico, home to more than 134 million people, sits only marginally ahead of Chile in terms of capacity despite having almost seven times the population.

For procurement teams conducting regional sourcing assessments, these figures could signal infrastructure maturity gaps that affect project viability.

Adriana Rivera, Executive Director of the MEXDC, has outlined what closing that gap would require from a procurement and planning perspective.

Adriana's recommendations include coherent long-term public policy focused on expanding generation, strengthening transmission and distribution networks, and streamlining interconnection processes.

"Without sufficient, reliable and well-planned energy, digital infrastructure cannot develop," Adriana said, noting that data centres play a broader economic role by attracting foreign investment, generating skilled employment and strengthening supply chains.

Procurement workarounds and vendor strategies

Turner & Townsend, a professional services firm managing several data centre projects across Mexico, reports that energy constraints vary significantly by region, affecting procurement strategies accordingly.

"Regarding energy, none of our clients face issues except those investing near the northern borders," said André Rizzo, Director of Industrial, Science & Logistics for LATAM and Data Centre for Mexico at Turner & Townsend, adding that the Bajío region has generally proved workable for the firm's clients to date.

The firm points to industrial parks as a practical procurement solution, offering developers pre-built infrastructure that sidesteps the three-year timelines associated with raw land development.

This approach allows procurement teams to source ready-made connectivity rather than managing complex utility negotiations independently.

Water sourcing presents another procurement consideration in Mexico's predominantly arid climate. Turner & Townsend notes that data centre designs increasingly specify closed-loop cooling systems that can either reduce or entirely eliminate fresh water consumption, affecting equipment specifications and vendor selection.

The MEXDC has warned that some projects are already being redirected to other Latin American markets that can offer greater supply chain certainty.

For procurement functions, this trend could mean reassessing location decisions that once seemed straightforward based on Mexico's proximity to the US and growing AI nearshoring demand.

"Expanding from 115.5MW to 279MW in an environment of energy constraints is a clear signal of the sector's potential, but also a warning: continuing without structural planning increases operational risks, delays projects and reduces national competitiveness," adds Amet Novillo, president of the MEXDC.

The sector's growth has been achieved largely through private procurement solutions rather than public infrastructure planning.

Until Mexico's energy policy catches up with demand, procurement teams may need to build additional contingency into their sourcing strategies, timelines and budgets when evaluating Mexican data centre investments.