Mexico Data Center Cooling Market

Mexico Data Center Cooling Market Analysis

The Mexico Data Center Cooling Market size is estimated at USD 0.11 billion in 2025, and is expected to reach USD 0.23 billion by 2031, at a CAGR of 12.9% during the forecast period (2025-2031).

• The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers.
• Under Construction IT Load Capacity: The IT load capacity of the Mexican data center cooling market is expected to reach more than 420 MW by 2030.
• Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase above 1.8 million sq. ft by 2030.
• Planned Racks: The country's total number of racks to be installed is expected to reach 75 thousand units by 2030. Querétaro is expected to house the maximum number of racks by 2030.
• Planned Submarine Cables: There are many submarine cables under construction in Mexico. One such submarine cable that is estimated to start service in 2025 is Caribbean Express (CX), which stretches over 3,472 km with landing points from Cancún, Mexico.
• The average winter temperature in the country is between -8.33 °C (17 °F) and -0.5 °C (31 °F). The average summer temperature is between 10 °C (50 °F) to over 25 °C (77 °F). Winters can vary widely across the country, with frequent cold, fog, and snow periods in the north and more pleasant weather in the south. Depending upon climatic conditions, DC cooling is done in the DC facilities.

Mexico Data Center Cooling Market Trends

IT and Telecom to Hold Significant Market Share

• The growing demand for cloud adoption and the increasing trend of AI in the country are driving the demand for data centers in the region. For instance, between 2018 and 2024, Mexico spearheaded the growth of AI companies in Latin America, witnessing a staggering 965% increase. The total count of these companies surged to 362. This rapid expansion not only created 11,000 jobs but also drew in investments exceeding USD 500 million.
• In August 2024, KFC Mexico inked a deal with Google Cloud, marking a significant step in its digital transformation journey. By harnessing advanced data analytics and machine learning solutions, KFC Mexico aims to enhance data-driven decision-making, ultimately seeking to elevate customer experiences and boost operational efficiency.
• In February 2024, Amazon Web Services Mexico (AWS), a subsidiary of Amazon.com Inc., unveiled plans to invest over USD 5 billion in establishing a cluster of data centers in Mexico. This move came in response to the surging demand for cloud services, driven by the increasing adoption of new technologies by businesses.
• Furthermore, in May 2024, Alibaba Cloud, the digital technology and intelligence backbone of Alibaba Group, announced plans to launch its inaugural cloud region in Mexico. Such instances in the market highlight the significance of AI and cloud growth in the region.
• In terms of Telecom growth, 5G is rapidly expanding across the region. According to Ericsson's Mobility Report 2024, Mexico stands out as Latin America's second-largest market for 5G users, holding 23.6% of the region's total subscriptions, equating to approximately 120 million users.
• Moreover, major players are actively working to broaden 5G services throughout the region. In April 2023, America Movil highlighted that the surge in 5G services is boosting the demand for postpaid mobile plans in Mexico. These market instances are anticipated to boost the demand for data storage in the region, consequently fueling the need for data center cooling infrastructure throughout the study period.

Liquid Cooling to Hold a Significant Market Share

• The emerging cloud technology in a wide range of data centers is one of the major factors driving the overall demand for data centers, thereby fueling the demand for liquid cooling technology in the region. Cloud technology is highly flexible because it is accessible by different devices and offers easy recovery of lost data. At the same time, cloud computing provides high computational speed, which helps other businesses grow. The surge in online retail or e-commerce demand has acted as a demand catalyst for the data center industry. Customers want more personalized data, and data center service providers are expanding their footprints by catering to these demand trends.
• Furthermore, the increasing workloads and rising demand for HPC (high-performance computing) applications generate a lot of heat in data centers, resulting in an increased need for liquid cooling solutions in the country. For instance, in May 2024, Digital Realty unveiled its pioneering liquid-to-chip cooling technology, marking a significant evolution in supporting high-density deployments. This cutting-edge advancement is a major stride in tackling the challenges of managing high-density workloads, especially in artificial intelligence (AI) and data-heavy applications.
• Furthermore, the region's expanding facilities, equipped with substantial IT load capacities, are driving an increased demand for liquid cooling solutions. In February 2024, OData, a prominent data center operator from Latin America, announced its plans to broaden its presence in Mexico. Once fully operational, the QR01 campus is set to provide up to 32 MW. Meanwhile, the QR02 campus in Guanajuato is slated for 30 MW, and the QR03 campus in El Marqués is projected to deliver a significant 150 MW.
• Among the liquid cooling solutions, direct-to-chip (DTC) cooling is expected to hold the major share in the region. This is because, with direct liquid cooling, high-density data centers may achieve a PUE of less than 1.2 without overspending on cooling. It eliminates the air handling systems, cutting the cooling power demand. It can also leverage 45 °C (113 °F) water for cooling. This allows for compressor-less cooling most of the year in many climates. Another opportunity is to reuse the heat by directing the heated liquid to the building’s heating system. Achieving energy efficiency guarantees an increased return on investment (ROI).
• Market players are investing in RDHx to cater to the rising computing capacity due to the penetration of AI and ML in the region. Such high computing workloads require efficient cooling technologies. For instance, in January 2024, nVent, a prominent global supplier of electrical connection and protection solutions, unveiled its latest innovation, the RDHX PRO rear door cooling unit. This cutting-edge solution is designed to enhance data centers, supporting high-density racks of up to 78 kW. It directly addresses the escalating demands of AI applications, the push for enhanced energy efficiency and sustainability, and the imperative of maximizing data center space.

Mexico Data Center Cooling Industry Overview

The Mexican data center cooling market is fragmented as the benefits offered by the technology and support from the government by imposing efficiency regulations on data centers are expected to help the growth of the data center cooling market directly. Market penetration is growing with a strong presence of major players such as Stulz GmbH, Rittal GMBH & Co. KG, Schneider Electric SE, Vertiv Group Corp., and Mitsubishi Electric Corporation.

• April 2024: Carrier Global Corporation partnered with Strategic Thermal Labs for the development of direct-to-chip cooling technology. Under this partnership, Carrier will leverage the advancement in direct-to-chip technology and incorporate it into its data center cooling solutions.
• December 2023: Vertiv completed the acquisition of Cooltera Ltd, a manufacturer of coolant distribution units (CDU) and secondary fluid networks (SFN). This acquisition is expected to improve the existing DC cooling solutions offered by the company.

Mexico Data Center Cooling Market Leaders

Mexico Data Center Cooling Market News

• March 2024: German heat exchanger manufacturer Kelvion and US immersion cooling company Rosseau announced a partnership to deliver enhanced immersion cooling solutions for the high-performance computing (HPC) industry.
• January 2024: Data center firm Aligned launched a liquid cooling system called DeltaFlow. It is a liquid cooling technology designed to support high-density computing requirements and supercomputers. It can cool densities up to 300 kW per rack. The new DeltaFlow system works simultaneously with Aligned’s air-cooled Delta technology, enabling no change in power delivery or existing data hall temperatures.