Mexico Data Center Rack Market Market Size (2024 - 2029)

The Mexican data center rack market is experiencing growth driven by the increasing demand for cloud computing among small and medium-sized enterprises, government regulations for local data security, and rising investments by domestic players. This growth is reflected in the market's expansion in terms of IT load capacity, raised floor space, and the number of racks planned for installation. Additionally, the development of submarine cable systems is enhancing connectivity, further supporting the market's expansion.

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Market Size of Mexico Data Center Rack Industry

Mexico Data Center Rack Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Forecast Data Period 2024 - 2030
Historical Data Period 2019 - 2022
CAGR (2024 - 2030) 7.10 %
Market Concentration High

Major Players

Mexico Data Center Rack Market Major Players

*Disclaimer: Major Players sorted in no particular order

Mexico Data Center Rack Market Analysis

The Mexico Data Center Rack Market size in terms of production volume is expected to grow from 0.09 Million units in 2024 to 0.14 Million units by 2030, at a CAGR of 7.10% during the forecast period (2024-2030).

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 in the country.

Under Construction IT Load Capacity: The upcoming IT load capacity of the Mexico data center rack market is expected to reach 480 MW by 2029.

Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 2.2 million sq. ft by 2029.

Planned Racks: The country's total number of racks to be installed is expected to reach 120,000 units by 2029. Querétaro is expected to house the maximum number of racks by 2029.

Planned Submarine Cables: There are around 11 submarine cable systems connecting Mexico, and many are under construction.

Mexico Data Center Rack Industry Segmentation

A data center rack is a physical enclosure made up of usually steel housing electronic framework. It is designed to house servers, networking and communication devices, cables, and other data center computing peripherals.

The Mexican Data Center Rack Market is segmented by rack size (quarter rack, half rack, full rack) and by end user (IT & telecommunication, BFSI, government, and media & entertainment). The market sizes and forecasts are provided in terms of volume (units) for all the above segments.

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Mexico Data Center Rack Market Size Summary

The Mexican data center rack market is experiencing significant growth, driven by the increasing demand for cloud computing services, particularly among small and medium-sized enterprises. Government regulations aimed at enhancing local data security and the rising investments by domestic players are further propelling the market's expansion. The adoption of cloud-based services is widespread, with a substantial portion of Mexican businesses utilizing private or hybrid cloud models. This trend is supported by favorable government initiatives that have mitigated entry barriers for domestic cloud providers. The digital transformation efforts by government agencies, particularly in e-government services, are expected to boost internet usage and, consequently, the demand for data center racks. Major cloud service providers, including Microsoft, Amazon Web Services, and Google, are actively expanding their presence in Mexico, offering comprehensive solutions to meet the growing needs of various sectors such as public services, finance, healthcare, and retail.

The market for full-rack data centers in Mexico is also on the rise, driven by the increasing need for data storage and processing capabilities due to the digital economy's expansion and the proliferation of internet users. The introduction of 5G technology and the growing use of smartphones have necessitated faster data processing and storage solutions, leading to a higher demand for full-rack infrastructure. Companies are increasingly relying on data centers to manage the vast amounts of data generated daily, which is fueling the market's growth. The competitive landscape is relatively low, with key players like Eaton Corporation, Black Box Corporation, and Schneider Electric SE focusing on expanding their market share through strategic collaborations. The construction of new data centers, such as those by Ascenty and TELMEX-Triara, is aligned with the rising demand for racks, indicating a robust growth trajectory for the Mexican data center rack market.

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Mexico Data Center Rack Market Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increased Migration to Cloud-based Business Operations

      2. 1.2.2 Internet Adoption and Information Technology Services to Boost Market Progress

    3. 1.3 Market Restraints

      1. 1.3.1 Low Availability of Resources

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Bargaining Power of Buyers/Consumers

      2. 1.5.2 Bargaining Power of Suppliers

      3. 1.5.3 Threat of New Entrants

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Assessment of COVID-19 Impact

  2. 2. MARKET SEGMENTATION

    1. 2.1 Rack Size

      1. 2.1.1 Quarter Rack

      2. 2.1.2 Half Rack

      3. 2.1.3 Full Rack

    2. 2.2 End-User

      1. 2.2.1 IT & Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media & Entertainment

      5. 2.2.5 Other End-Users

Mexico Data Center Rack Market Market Size FAQs

The Mexico Data Center Rack Market size is expected to reach 0.09 million units in 2024 and grow at a CAGR of 7.10% to reach 0.14 million units by 2030.

In 2024, the Mexico Data Center Rack Market size is expected to reach 0.09 million units.

Mexico Data Center Rack Market Report Snapshots

Mexico Data Center Rack Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)