Energy & Construction: Why Mexican Data Centres Struggle

Infrastructure challenges threaten Mexico's data centre boom as energy constraints delay projects and risk pushing business to neighbouring markets

The construction sector supporting Mexico's data centre boom finds itself at a critical juncture as infrastructure challenges threaten to derail one of the country's most lucrative building opportunities.

Installed capacity has surged from 115.5MW in 2024 to nearly 280MW in 2025 according to the Mexican Data Centre Association (MEXDC). That is a rise of around 142% between 2024 and 2025.

Despite this stellar growth, however, the MEXDC is sounding the alarm and its frustration is pointed squarely at the government. Without adequate energy planning, projects face delays, cost overruns and in some cases complete relocation to neighbouring markets.

In a statement marking its third anniversary, the MEXDC says it has "unsuccessfully" sought to engage the Mexican Energy Ministry to jointly plan for the sector's electricity needs. Meanwhile, Mexico's neighbouring nations are building their data centre portfolio all the time, which has some of the sector's stakeholders worried that business may move elsewhere if the government does not organise itself appropriately.

Infrastructure coordination challenges

Part of the problem that MEXDC has identified is a lack of coordination between the ambitions of an industry scaling rapidly and the state bodies (chiefly grid operator the National Centre for Energy Control (CENACE) and state utility the Federal Electricity Commission (CFE)) that control access to the infrastructure that makes it all possible.

In the absence of a formal framework, operators are funding their own solutions, with the MEXDC estimating roughly US$340m is being invested in dedicated electrical infrastructure in the Bajío region alone. This spend could represent substantial opportunities for civil engineering contractors, electrical specialists and infrastructure builders working on substations, transmission lines and backup power facilities.

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

The challenge extends beyond simple capacity issues to encompass regulatory bottlenecks, permitting delays and a lack of clear timelines for grid connections. These coordination failures create uncertainty that makes project planning difficult and increases the risk profile for investors and developers alike.

Regional market comparison matters

Brazil is leading the way in the Latin American data centre market with more than 900MW of installed capacity, serving a population of 213 million.

Chile, meanwhile, has reached 258.5MW with just 20 million inhabitants. But while Mexico is home to more than 134 million people (almost seven times as many as Chile), it sits only marginally ahead in terms of capacity.

That is a gap that speaks to underinvestment in the grid infrastructure that digital industries like data centres rely so heavily upon.

Adriana Rivera, the Executive Director of the MEXDC, is rather direct about what closing that gap would require. Her recommendations are:

• Coherent long-term public policy focused on expanding generation
• Strengthening transmission and distribution networks
• Streamlining interconnection processes.

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

From the private sector's perspective, the bottlenecks in setting up a streamlined energy system for Mexico's digital infrastructure are real but navigable, at least for the time being.

Turner & Townsend, a professional services firm that manages several data centre projects across Mexico says that energy constraints are not uniformly felt across the country.

"Regarding energy, none of our clients face issues except those investing near the northern borders," says André Rizzo, Director of Industrial, Science & Logistics for Latin America (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.

Turner & Townsend also points to industrial parks as a practical workaround, offering developers pre-built infrastructure that sidesteps the three-year timelines associated with raw land development.

When it comes to Latin America (LATAM), questions of water are equally pertinent as questions of energy. As Mexico is a country known for its predominantly arid climate, Turner & Townsend notes the ways in which the nation's data centres have had to adapt their designs, particularly with regards to closed-loop cooling systems that can either reduce or entirely cut out the use of fresh water.

Project migration risks

So, if the current constraints on Mexico's energy sector are manageable, if a little troublesome, why is the alarm sounding across the country's data centre sector? The sector's current trajectory is the main thing worrying the MEXDC right now. The association has warned that some projects are already being redirected to other Latin American markets that can offer greater certainty.

Should this trend continue, it risks eroding Mexico's inherent geographical advantage: its proximity to the US and the AI nearshoring demand that flows from it.

"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," says Amet Novillo, the President of the MEXDC.

The sector's achievements so far are impressive, but it is important to note that they have been built largely in spite of the policy environment, not because of it.

For now, the MEXDC's position seems to be that until Mexico's energy policy catches up with its ambition, its progress in the data centre sector might be slower than it would like. For the construction industry, this could translate into a more gradual build-out of projects than the market fundamentals might otherwise support, potentially limiting near-term growth opportunities while neighbouring markets capture projects that might have been built in Mexico.