Why is Querétaro Positioned as the Preferred Destination for Data Centers?
Querétaro is the fastest-growing city in Mexico. Its economy is mainly based on IT, aeronautics, and auto parts sectors. The IT sector has boomed in recent years and Querétaro is now the main destination in Mexico for the arrival of foreign and local data centers.
Outlook
According to SEDESU (Sustainable Development Agency), there are currently 10 data centers in Querétaro, with 18 more on the way. Marco Antonio del Petre, Secretary of Sustainable Development, has recently mentioned that investments in this market will reach $8.5 billion USD, which is roughly the same amount received by the state in foreign direct investment in the last decade.
The CBRE Group’s Global Data Center 2023 study ranks Querétaro as the preferred location for data center development in Mexico. With data centers already located in several municipalities and with about 76 industrial parks, the state has become a critical link between Mexico City and the United States.
Santiago Suinaga, CEO of KIO Data Centers, has mentioned that “Querétaro is a state that will continue to grow as a technological center by receiving more investments in this type of infrastructure.”
Key Reasons
Querétaro has several characteristics that make it an ideal destination for data centers, especially for hyperscalers such as Amazon, Microsoft, and Google. They are:
- Abundant power supply from CFE (Federal Electricity Commission).
- Governmental support from SEDESU, the government agency in charge of economic development in the State of Querétaro.
- Proximity to the main economic centers, especially Mexico City.
- Fiber optic connectivity and backbone networks in the region.
- Low probability of natural disasters, especially earthquakes.
It is also worth mentioning that due to the magnitude of the investments being made in Querétaro, the State Government will invest $292.7 million USD in the strengthening of the electricity network. The project includes the installation of 75 kilometers of high-voltage lines with a capacity of 115 kW and two electrical substations with a capacity for 1,425 MVA, among others. This will ensure sufficient power supply in Querétaro for the next decade. The project will be carried out in the municipalities of Colón, El Marqués, Huimilpan, Pedro Escobedo, and San Juan del Río, in order to better distribute power service throughout the state. Construction will begin at the end of 2023.
Read also: Guanajuato, top FDI recipient thanks to its industrial corridors
The KIO Networks Case
KIO Networks is a Mexican IT company with two data centers in Querétaro. In March, it announced the construction of a third center in El Marqués, with an investment of $400 million USD in 25,000 m2.
This new data center, which is expected to begin its construction in 2024, will contribute to a unified ecosystem in a campus that will house telecom and IT suppliers, as well as hyperscalers.
Companies with Current or Future Data Centers in Querétaro
- Equinix: currently has two data centers in the Parque Tecnológico Innovación.
- Acenty: this Brazilian company has invested $1 billion reales (approximately $204 million USD) to open two data centers in Querétaro.
- CloudHD: this company will invest $3.6 billion USD on its Colón campus.
- ODATA: this Brazilian company has an operational data center in El Marqués, and it has plans to open another one in the future.
- KIO Networks: two data centers are in full operation with a third to be constructed.
- Microsoft: Arkansas State University has an Azure data center on its campus.
- Amazon Web Services: two Edge facilities, that support the CloudFront product.
- Scala Data Centers: currently building two data centers in Querétaro.
At Advance Real Estate, we recognize the potential for building data centers in Querétaro, and we have a significant amount of build to suit land available.
Information sources:
- https://siteselection.com/investor-watch/queretaro-data-center-investment-central-to-digitizing-mexican-industry.cfm
- https://mexiconewsdaily.com/business/kio-networks-build-third-data-center-queretaro/
- https://dgtlinfra.com/mexico-city-data-center-queretaro-state/
- https://mexicobusiness.news/energy/news/queretaro-strengthen-energy-grid
- https://www.datacenterdynamics.com/es/noticias/cloudhq-invierte-en-queretaro-con-un-proyecto-de-seis-data-centers-en-colon/
- https://ascenty.com/es/blog/news-ascenty-es/ascenty-abre-dos-data-centers-en-mexico-los-primeros-de-la-empresa-en-el-pais%EF%BF%BC/
- https://www.cbre.com/insights/reports/global-data-center-trends-2023
