As part of the Bajio Region, Queretaro has been a great example of foreign direct investment (FDI). The Brazilian data center giant, ODATA, invested over $100 million USD in the state to enter the North American market. Their target is to bring cloud services to Amazon, Microsoft, and Netflix.
Foreign Direct Investment: taking off during rough times
Even under the effects of the pandemic, it was a great year for Mexico as foreign direct investment has increased. One of the companies that was interested in entering this country was ODATA. They plan on bringing their data centers to Parque Industrial Queretaro (Industrial Park Queretaro) to bring their services to digital giants, like Google and Facebook among others.
ODATA is currently developing a 5 hectare data center that will be able to reach 32 megawatts.
“With the information demand we are experiencing, having data centers located far away from each other is not a pleasant experience for the user. These companies (data centers) are investing to expand their presence in different countries,” said Ricardo Arévalo, Executive Director of ODATA Mexico.
According to Arévalo, this is one of the main reasons why Queretaro has gotten the data center spotlight in Mexico.
Queretaro: high concentration of information infrastructure
Another great example of cloud services companies looking for more data centers in Mexico is Amazon Web Services. They announced the inauguration of their Amazon CloudFront Edge Location, located in a data center in Queretaro. It promises to cut their content loading time around 30% compared to others within the United States.
Although, the pandemic’s effect on the data center infrastructure market was adverse at first. It had the same luck as the information and communications technology market in Mexico, according to Ricardo Zermeño, Select consultancy director.
“Data centers infrastructures, like in other markets, have lost some momentum. These foreign direct investments are great news in the middle of this economic contraction. More so because these data center infrastructure providers are living in a shrinking market,” stated Zermeño.
Zermeño and Arévalo agree that some of the most important clients for data centers like ODATA are those that provide Over The Top services. These are those that use the web to stream content of all kinds: video, audio, text, among others. According to Arévalo, this might be one of the reasons why ODATA is already contemplating the construction of a second and a third data center in Mexico.
Even though Mexico already has a great number of data centers belonging to companies like KIO Networks, IBM, and Telmex, these are focused primarily on the business sector. What ODATA brings to the country is a data center primarily focused on the end user.
According to Arévalo, there were plans from other data center giants to settle in Mexico, but the pandemic has sped up this process considerably, mostly due the tools needed to do home office. He also admitted that there are around five other tech companies looking to enter the Mexican market or expand what they already have in Mexico.
“(The situation) is somewhat urgent. If we can deliver in less time, it will start being used earlier. We are running against the clock and some clients of this kind are looking for solutions that can be developed under a year,” he added.
With the arrival of ODATA to the country, the investment in data centers raised to almost $1.5 billion USD in 2020. It is very likely that this number will keep on growing in the near future.
We are proud to announce that we assisted ODATA in settling in Parque Industrial Queretaro. This will be another project delivered to a fully satisfied customer. As we are doing with the Brazilian data center giant, here at VYNMSA we would like to assist you in settling in Mexico.
We are one of the leading industrial real estate developers in Mexico. Plus, we have over 30 years of experience and have delivered over 500 projects to fully satisfied customers. We are also fully equipped to assist you in developing your BTS projects. All while offering lease and sale solutions that always have a win-win approach.
We also are Broker Friendly and have around 20 inventory buildings ready for immediate occupancy. This is a total space of 2 million SqFt across Northeast and Central Mexico.
Contact us and set up shop in Mexico with VYNMSA and bring your data center to this country.
Sources: El Economista