Mexico IaaS Market Size and Forecast by Offering, Deployment Model, Organization Size, Subscription Model, and End User Industry: 2019-2033

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Industry Assessment Overview

Industry Findings: Shifts in regional cloud adoption are increasingly shaped by the country’s push for nearshoring-driven digital capacity, which has amplified the demand for low-latency compute and resilient data hosting (May-2024). A clear example is AWS’s announcement of a new Mexico cloud region, which signals structural change: enterprises can now design latency-sensitive architectures locally rather than backhauling workloads to the US, narrowing operational risks and reducing data-sovereignty friction.

Industry Progression: Mexico’s ecosystem is gaining speed as hyperscalers formalize timelines and local telcos modernize backbone networks. Google Cloud’s expansion commitments in Spanish-speaking Latin America (Apr-2024) underscore this shift; the corresponding regional investments trigger competition among Mexican enterprises seeking earlier access to AI-ready infrastructure. This momentum tightens integration between national carriers and cloud providers, raising throughput capacity and improving workload performance.

Industry Player Insights: Players operating in the Mexico industry include Amazon Web Services, Microsoft Azure, Google Cloud, and KIO Networks. A notable event was KIO Networks’ ongoing DC capacity upgrades in Querétaro (Jun-2023), which expanded power and floor space for enterprise tenants. This upgrade accelerates domestic interconnect density and strengthens Mexico’s ability to support blended edge–core architectures.