Americas Data Center H2 2024 Update

LATAM EMERGING MARKETS

H2 24

QUERÉTARO

KEY INDICATORS*

10 / 17 Operators / Data Centers

105MW In operation

33MW UC

13.3% Colo Vacancy

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FERNANDO LERICI Regional Head of Transaction Management fernando.lerici@cushwake.com

Querétaro has firmly established itself as Mexico's data center hub, attracting significant investments from major global players. Google Cloud recently launched its cloud region in Querétaro, marking its third Latin American region after Santiago, Chile, and São Paulo, Brazil. This move underscores Querétaro's status as a key hyperscale destination in Mexico, with all major U.S. cloud providers having live or announced regions there. Oracle was the first to launch in 2022, followed by Microsoft, which opened its Azure cloud region in May 2024 and has committed to further AI infrastructure investments in Mexico. AWS also operates edge and local zones in Querétaro, with plans for a full cloud region set to go live next year. Texas-based MDC Data Centers is set to build its first data center outside the U.S., in Querétaro, focusing on connectivity with a 2MW facility that is expected to go live in the first quarter of 2026. MDC's presence will enhance connectivity options, leveraging its extensive network of data centers along the U.S.-Mexico border and international fiber crossings. Chinese cloud giant Alibaba also plans to expand its footprint in Mexico by launching its first cloud region in the country. This expansion will add to the existing cloud regions operated by Microsoft, Oracle, and Huawei, across Queretaro, Mexico City, and Monterrey. Earlier this year, AWS announced plans to open a cloud region in Mexico, further solidifying Querétaro's position as a critical hub for cloud infrastructure.

RAFAEL NOLAZCO Director of Development rafeal.nolazco@sa.cushwake.com

Querétaro's emergence as a leading data center market is driven by its robust digital infrastructure, strategic location and growing commitment to sustainable energy. With ongoing investments and developments, Querétaro is poised to become a central player in the global data center landscape.

BOGOTÁ

KEY INDICATORS*

14 / 20 Operators / Data Centers

47MW In operation

54MW UC

25.5% Colo Vacancy

Bogotá's data center market has evolved significantly since 2017, transitioning from local, service-rich legacy telco facilities to modern, large-scale hyperscale deployments. The city's robust energy matrix, composed of 68% hydro, 30% thermal and 1% renewables, along with government tax incentives for renewable energy investments, positions Bogotá as an attractive destination for data center development. With ongoing investments and developments, Bogotá is set to become an emerging Latin American market to watch. OData is leading the charge with a $1.3 billion investment to develop two new data centers in Cundinamarca, Bogotá. The first phases of construction are expected to be completed by the end of 2026. DC BG01, OData's Bogotá facility that launched in 2018, offers 14.6MW of IT capacity across 5,500 sm of floor space and can accommodate densities of up to 10kW per rack. The new facilities funded by the investment will offer a combined 144MW of capacity, designed to meet the needs of cloud and AI customers. Colombian telco Tigo has also made significant strides by modernizing its Titanium data center in Bogotá, securing a Tier 3 Gold certification from the Uptime Institute. This certification, valid through December 2027, ensures the highest standards of operational sustainability, allowing the facility to handle workloads without disruptions. Additionally, the Zona Franca of Bogotá announced plans to create a new Zona Franca dedicated solely to data centers, with an estimated 300MW of power. This project, in collaboration with local power company ENEL, is expected to commence in 2026.

*Definition: Key indicators are based on operational Hyperscale Cloud, Colo, Edge & Telco data centre facilities in the market and excludes Captive & ICT.

CUSHMAN & WAKEFIELD | AMERICAS DATA CENTER MARKET OVERVIEW