Colocation Services in Mexico City, Monterrey, and Guadalajara | Reboot Monkey

Colocation Services in Mexico City, Monterrey, and Guadalajara

When Carlos Mendez, CTO of a growing fintech startup in Mexico City, faced repeated power outages that took down his company’s servers for the third time in a month, he knew something had to change. “We lost thousands in revenue and customer trust each time our systems went offline,” Carlos told me. “That’s when we decided to move our infrastructure to a local colocation facility.

The transformation was immediate – 99.99% uptime, better security, and our IT team could finally focus on innovation instead of maintaining server rooms.”

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Carlos’s experience mirrors what many businesses across Mexico are discovering today. As digital transformation accelerates across Latin America, companies in Mexico City, Monterrey, and Guadalajara are turning to colocation services as a reliable alternative to in-house data centers.

In this blog, we will discuss the growing colocation market in Mexico’s three largest business hubs. We’ll explore how these services provide secure, scalable, and high-performance infrastructure for businesses of all sizes. From the established data center ecosystem in Mexico City to the emerging facilities in Monterrey and Guadalajara, we’ll examine what makes each location unique and how businesses can benefit from them.

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Understanding Colocation Services in Mexico

What is Colocation?

Colocation (often shortened to “colo”) refers to housing privately-owned servers and networking equipment in a third-party data center. Rather than building and maintaining their own data center, businesses rent space, power, cooling, and internet connectivity from a specialized provider.

This approach differs from traditional on-premise hosting in several key ways:

Capital Expenditure Colocation shifts major infrastructure costs from capital expenditure (building your own facility) to operational expenditure (paying monthly for services).

Expertise Professional data centers employ specialists in power management, cooling, security, and network administration.

Scale Colocation providers can offer economies of scale that most individual businesses cannot achieve.

Businesses in Mexico City, Monterrey, and Guadalajara increasingly choose colocation for practical reasons. Mexico’s energy grid faces stability challenges in some regions. Professional data centers address this with backup power systems. Additionally, the cost of real estate in prime business districts makes building private data centers prohibitively expensive for many companies.

A 2024 survey of Mexican IT decision-makers found that 68% cited cost savings as their primary motivation for choosing colocation, followed by improved reliability (59%) and access to better connectivity options (52%).

Key Features of Colocation Services

Power Redundancy & Cooling

Reliable power is the foundation of any data center operation. Mexico’s top colocation providers offer:

• Redundant power connections to different substations
• Backup generators with 48-72 hours of fuel reserves
• Uninterruptible Power Supply (UPS) systems
• N+1 or 2N redundancy for critical systems

Cooling systems are equally critical, especially considering Mexico’s varied climate conditions. Modern facilities use:

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• Precision air conditioning systems
• Hot/cold aisle containment
• Free cooling technologies where climate permits
• Water-efficient cooling designs

These systems work together to maintain ideal operating conditions (typically 18-27°C and 40-60% humidity) while minimizing energy consumption.

Security & Compliance

Data protection is a top priority for Mexican businesses as cybersecurity threats increase and regulations tighten. Quality colocation providers offer:

• Physical security: Fences, barriers, biometric access controls, mantraps
• 24/7 on-site security personnel
• Comprehensive video surveillance
• Visitor management systems

Beyond physical measures, providers implement:

• Firewalls and intrusion detection/prevention systems
• DDoS protection
• Encryption for data in transit
• Compliance with standards like SOC 2, ISO 27001, and NOM (Mexican Official Standards)

Scalability & Flexibility

Growing businesses need infrastructure that grows with them. Colocation offers:

• Modular expansion options
• Pay-as-you-grow pricing models
• Diverse cabinet/cage/suite configurations
• The ability to adjust power density as computing needs evolve

This flexibility allows businesses to adapt to changing market conditions without the delays and costs associated with building new in-house facilities.

Connectivity & Network Performance

Mexico’s position as a bridge between North and South America makes it a natural connectivity hub. Top colocation providers offer:

• Multiple fiber routes from different carriers
• Direct connections to major cloud providers
• Internet exchange points for efficient traffic routing
• Low-latency connections to US and Latin American markets

The table below shows typical latency times from major Mexican cities to key destinations:

From	To Mexico City	To Dallas	To Miami	To São Paulo
Mexico City	<1ms	32ms	45ms	180ms
Monterrey	12ms	17ms	38ms	195ms
Guadalajara	8ms	40ms	52ms	188ms

Colocation Services in Mexico City

Overview of Mexico City’s Data Center Market

Mexico City stands as the undisputed leader in Mexico’s data center landscape. As the country’s financial and business capital, it hosts the largest concentration of colocation facilities. This growth is driven by:

• The presence of major national and multinational corporations
• Its role as a key connectivity point between North and South America
• A large pool of technical talent
• Strong demand from financial services, healthcare, and government sectors

The Mexico City data center market grew by approximately, just over 14% in 2023, making it one of the fastest-growing markets in Latin America. This growth shows no signs of slowing, with several providers announcing expansion plans through 2025.

What makes Mexico City particularly attractive is its established digital ecosystem. The city hosts multiple Internet Exchange Points (IXPs), including Mexico Network Access Point (MEX-IX), which facilitates efficient data exchange between networks. This connectivity advantage translates to lower latency and reduced bandwidth costs for businesses.

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Best Colocation Services in Mexico City

Mexico City offers a range of colocation options, from global operators to local specialists. Here are some of the leading providers:

1. Reboot Monkey

As a global data center solution provider, Reboot Monkey offers secure and scalable colocation services across Mexico City, Monterrey, and Guadalajara. With high-performance infrastructure, low-latency connectivity, and flexible solutions, Reboot Monkey helps businesses access reliable colocation services tailored to their IT needs.

2. Equinix Mexico (MX1)

Located in the Santa Fe business district, this facility offers carrier-neutral colocation with direct connections to over 35 networks. Equinix’s global platform provides Mexican businesses with connections to markets worldwide.

3. KIO Networks

With multiple data centers in the Mexico City metropolitan area, KIO is a dominant local player. Their Mexico City facilities are Tier III certified and offer robust security measures.

4. Ascenty

Part of Digital Realty, Ascenty’s Mexico City data center provides high-density colocation options with connectivity to major cloud providers.

5. CDC Data Centers

Located in Queretaro (part of the greater Mexico City economic zone), CDC offers lower costs while maintaining proximity to the capital.

6. Telmex Triara

Backed by telecommunications giant Telmex, Triara operates substantial data center facilities with strong network connectivity.

A medium-sized retail business recently moved its e-commerce infrastructure to Equinix’s MX1 facility after experiencing rapid growth. The move reduced their infrastructure costs by 23% while improving website performance by over 30%. Their IT director noted, “The ability to directly connect to cloud providers and payment processors made a noticeable difference in transaction times.”

Colocation Services in Monterrey

Monterrey Data Center Market Overview

Monterrey has emerged as Mexico’s second-largest data center hub, benefiting from its strategic location in northern Mexico and strong economic ties to the United States. The Monterrey market is characterized by:

• Proximity to the Texas border (less than 150 miles)
• Strong manufacturing and industrial base
• Growing technology sector
• Lower operating costs compared to Mexico City

The city’s location makes it ideal for businesses that need low-latency connections to U.S. networks. Data centers in Monterrey can achieve connection times to Dallas as low as 15-17ms, comparable to connections between major U.S. cities.

Monterrey’s data center market has grown steadily at around 12% annually since 2022. This growth is driven both by local businesses and American companies looking to establish a presence in Mexico while maintaining close connectivity to U.S. operations.

The market has also benefited from Monterrey’s reliable power infrastructure. The city’s industrial base has long required stable power delivery, leading to investments in the local grid that benefit data center operations.

Best Colocation Services in Monterrey

Monterrey’s colocation market offers a mix of regional and international providers:

1. Reboot Monkey – As a global data center solution provider, Reboot Monkey delivers colocation services in Monterrey, providing secure infrastructure, high-speed connectivity, and enterprise-grade reliability. With custom colocation solutions, businesses can optimize their IT infrastructure with flexible, low-latency services.
2. KIO Networks Monterrey – Their Tier III facility offers robust colocation services with a focus on manufacturing and industrial clients.
   
3. Neutral Networks – A carrier-neutral provider with strong connectivity options to the U.S. and across Mexico.
   
4. Millicom (TIGO) – Following their acquisition of regional assets, TIGO operates data center facilities serving northern Mexico.
   
5. Axtel – A telecommunications provider with data center services particularly suited to mid-sized businesses.
   
6. MCM Telecom – Specializing in business connectivity, their colocation services feature strong redundancy measures.

These providers compete mainly on connectivity options and price, with many offering attractive packages to businesses looking to expand their digital footprint in northern Mexico.

An automotive parts supplier with operations in both Mexico and Texas recently consolidated their IT infrastructure in Neutral Networks’ Monterrey facility. This strategic move reduced their cross-border data transfer costs by 35% while improving application performance for users in both countries.

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Colocation Services in Guadalajara

Guadalajara’s Role in Mexico’s Data Center Market

Known as Mexico’s “Silicon Valley,” Guadalajara has built a reputation as a technology hub that’s now driving data center growth. Key factors influencing Guadalajara’s data center market include:

• A strong concentration of technology companies and startups
• Prestigious technical universities producing skilled IT professionals
• Lower operating costs than Mexico City
• Growing demand from the region’s technology sector

Guadalajara’s tech ecosystem has attracted significant investment in recent years. Major technology companies have established development centers in the city, creating demand for robust data center services. This technology focus has made Guadalajara particularly attractive for colocation providers specializing in supporting software development, testing environments, and digital service delivery.

While smaller than Mexico City’s market, Guadalajara’s data center sector grew by approximately 15% in 2023, outpacing both Mexico City and Monterrey. This growth reflects the city’s increasing importance in Mexico’s digital economy.

Best Colocation Services in Guadalajara

Guadalajara’s colocation options cater particularly well to the technology sector:

1. Reboot Monkey – As a global data center solution provider, Reboot Monkey delivers colocation services in Guadalajara, providing secure infrastructure, high-speed connectivity, and enterprise-grade reliability. With custom colocation solutions, businesses can optimize their IT infrastructure with flexible, low-latency services.

2. KIO Networks Guadalajara – With a strong presence across Mexico, their Guadalajara facility specializes in supporting tech companies and startups.
   
3. Alestra – Now part of Axtel, their Guadalajara data center offers carrier-neutral colocation with a focus on scalability.
   
4. Telmex Triara Guadalajara – Leveraging Telmex’s extensive network, their facility provides strong connectivity options.
   
5. ODATA – A newer entrant to the market focusing on high-density colocation for compute-intensive applications.
   
6. MCM Telecom Guadalajara – Offers business-focused colocation with an emphasis on local support.
   

Businesses in Guadalajara cite scalability and access to technical support as major factors in their colocation decisions. The city’s large pool of IT talent makes it easier for colocation providers to staff their facilities with skilled personnel.

A local software development firm working on AI applications moved from in-house servers to ODATA’s high-density racks, gaining the power capacity needed for their GPU clusters while reducing their infrastructure management overhead by approximately 60%.

Address and Locations of Colocation Data Centers in Mexico

List of Colocation Services in Mexico City, Monterrey, and Guadalajara

Mexico City

• Reboot Monkey – A global data center solution provider
• Equinix MX1: Prolongación Paseo de la Reforma 404, Santa Fe, CDMX
• KIO Networks DF6: Blvd. Manuel Ávila Camacho 690, Lomas de Chapultepec, CDMX
• Ascenty Mexico City: Av. Santa Fe 505, Santa Fe, CDMX
• CDC Querétaro: Anillo Vial Fray Junípero Serra, Santiago de Querétaro (Mexico City metro area)
• Telmex Triara Santa Fe: Av. Javier Barros Sierra, Santa Fe, CDMX

Monterrey

• Reboot Monkey – A global data center solution provider
• KIO Networks MTY2: Av. Constitución Este 903, Centro, Monterrey
• Neutral Networks Apodaca: Carr. Miguel Alemán Km 16, Apodaca
• TIGO Monterrey: Av. Roble 660, Valle del Campestre, San Pedro Garza García
• Axtel Monterrey: Av. San Jerónimo 210, San Jerónimo, Monterrey
• MCM Telecom: Av. Lázaro Cárdenas 2321, Valle Oriente, San Pedro Garza García

Guadalajara

• Reboot Monkey – A global data center solution provider
• KIO Networks GDL1: Av. Vallarta 6503, Ciudad Granja, Zapopan
• Alestra Guadalajara: Av. Mariano Otero 1249, Rinconada del Bosque, Guadalajara
• Telmex Triara Guadalajara: Av. López Mateos Sur 2077, Jardines del Sol, Zapopan
• ODATA Jalisco: Anillo Periférico Sur 7980, Santa María Tequepexpan, Tlaquepaque
• MCM Telecom Guadalajara: Av. Américas 1297, Providencia, Guadalajara

How to Choose the Right Data Center Location

Selecting the optimal location depends on several factors:

Proximity to Business Operations

• Mexico City: Ideal for financial services, media, and businesses with national operations
• Monterrey: Best for manufacturing, logistics, and businesses with strong U.S. connections
• Guadalajara: Optimal for technology companies, software development, and startups.

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Latency Considerations

For applications where milliseconds matter, consider these typical latency figures:

Application Type	Recommended Max Latency	Best Location for U.S. Access	Best Location for LatAm Access
Financial Trading	<10ms	Monterrey	Mexico City
E-commerce	<100ms	Either	Either
Content Delivery	<50ms	Closest to users	Closest to users
Database Replication	<20ms	Monterrey	Mexico City

Pricing Differences

Colocation costs vary significantly between locations:

• Mexico City: Highest costs for space and power (typically $900-1,200/kW/month)
• Monterrey: Mid-range pricing ($700-900/kW/month)
• Guadalajara: Most affordable ($600-800/kW/month)

These differences reflect both real estate costs and the competitive dynamics in each market. Many businesses find that the premium for Mexico City locations is justified by the superior connectivity options, while others prefer the cost advantages of secondary markets.

Mexico’s Data Center Market Growth & Future Trends

Mexico Data Center Market Size & Growth

Mexico’s data center colocation market reached approximately $685 million in 2023, with projections suggesting it will exceed $1 billion by 2026. This growth is driven by:

• Digital transformation initiatives across all business sectors
• Increased cloud adoption creating demand for interconnection services
• Data sovereignty concerns encouraging local data storage
• The expansion of content delivery networks to serve Mexico’s growing internet user base

The market has attracted significant international investment. Global players like Equinix, Digital Realty (through Ascenty), and American Tower have entered the Mexican market, bringing international best practices and connecting Mexico to global networks.

Government policies have also played a role in market development. While Mexico lacks specific data localization laws, regulations in sectors like financial services and healthcare effectively require certain data to remain within national borders. This regulatory environment supports continued growth in domestic data center capacity.

Regional distribution of the market remains concentrated, with Mexico City accounting for approximately 60% of the market, Monterrey 25%, and Guadalajara 10%, with other locations making up the remaining 5%.

Future of Colocation Services in Mexico

Several trends will shape Mexico’s colocation landscape in the coming years:

Growth in Advanced Computing

Artificial intelligence and machine learning applications are driving demand for high-density racks capable of supporting GPU clusters and specialized computing hardware. Mexican data centers are adapting by:

• Increasing power density capabilities (from 5-8kW per rack to 15-25kW)
• Implementing liquid cooling solutions for high-performance computing
• Creating AI-optimized zones within existing facilities

Sustainability Initiatives

Environmental concerns are influencing data center development across Mexico:

• Renewable energy projects, particularly solar, are being integrated into data center power strategies
• Water conservation measures are becoming standard in new facilities
• LEED and other environmental certifications are increasingly common

KIO Networks announced in early 2024 that all their Mexican facilities would be powered by 100% renewable energy by 2027, setting a benchmark for the industry.

International Partnerships

Cross-border collaboration is reshaping Mexico’s colocation market:

• U.S. providers partner with Mexican operators to create seamless North American service footprints
• Brazilian and Colombian data center companies are expanding northward
• Mexican providers are forming alliances with global cloud platforms

These partnerships create new opportunities for Mexican businesses to access global digital ecosystems while maintaining local data residency when required.

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Choosing the Best Colocation Provider in Mexico

Factors to Consider

Reliability & Uptime Guarantees

When evaluating providers, examine:

• Published SLA terms (look for 99.99% or better uptime guarantees)
• Compensation provisions for downtime
• Historical performance data
• Power redundancy configurations (N+1 at minimum, 2N preferred for critical applications)
• Cooling redundancy measures

Ask potential providers about their longest outage in the past 24 months and their mean time to recovery. Their transparency about past incidents often indicates their operational maturity.

Security Standards

Security capabilities vary significantly between providers. Verify:

• Compliance certifications relevant to your industry (ISO 27001, SOC 2, PCI DSS)
• Physical security measures and access procedures
• Network security capabilities and DDoS mitigation
• Security incident response protocols

For businesses in regulated industries, ensure the provider can demonstrate compliance with sector-specific requirements like financial services regulations or healthcare data protection standards.

Connectivity & Network Access

Assess network options including:

• Number and diversity of carriers available on-site
• Direct cloud connectivity options (AWS Direct Connect, Azure ExpressRoute, etc.)
• Cross-connect pricing and provisioning timeframes
• Presence of internet exchange points or similar peering facilities

Providers with robust connectivity options can significantly reduce your ongoing bandwidth costs while improving application performance.

Cost & Service Flexibility

Compare total cost of ownership across providers by examining:

• Base cabinet/space charges
• Power fees (per circuit, per kW, or per kWh)
• Cross-connect and network charges
• Setup fees and minimum contract terms
• Charges for remote hands services

Look beyond the headline rates, as some providers with higher base fees may offer inclusive services that reduce total costs over time.

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Why Colocation is the Best Choice

For businesses operating in Mexico City, Monterrey, and Guadalajara, colocation offers compelling advantages over both traditional in-house facilities and pure cloud solutions.

Colocation provides a middle path that combines the control and performance of owned infrastructure with the reliability and efficiency of purpose-built data centers. This approach is particularly well-suited to Mexico’s business environment, where companies often need to balance performance requirements with practical considerations like power reliability and security.

The competitive market across Mexico’s three main business hubs ensures that businesses can find solutions tailored to their specific needs, whether that’s high-security facilities in Mexico City, low-latency connections to the U.S. from Monterrey, or cost-effective options in Guadalajara’s growing tech ecosystem.

As Mexico’s digital economy continues to develop, colocation will play an increasingly important role in supporting business innovation and growth. Companies that make strategic colocation decisions today position themselves for success in tomorrow’s increasingly digital business landscape.

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Conclusion

Mexico’s colocation market is evolving rapidly, with robust options available in Mexico City, Monterrey, and Guadalajara. Each location offers distinct advantages: Mexico City provides unmatched connectivity and ecosystem benefits, Monterrey offers proximity to U.S. markets, and Guadalajara combines technical talent with cost advantages.

The key benefits of choosing colocation over in-house data storage include:

• Professional management of critical infrastructure
• Access to carrier-rich environments not feasible in private facilities
• The ability to scale quickly as business needs change
• Improved reliability through purpose-built systems with redundancy at every level

While this guide provides a starting point, every business has unique requirements. Speaking with experienced data center consultants can help you navigate the options and find the right fit for your specific needs. The right colocation partner will not just provide rack space and power, but will serve as a foundation for your digital business strategy in Mexico’s growing market.

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Choosing colocation is a strategic decision that ensures reliability, security, and long-term efficiency. Reboot Monkey provides high-performance colocation services across Mexico City, Monterrey, and Guadalajara, offering secure infrastructure, fast connectivity, and expert support to meet your IT needs.

• Scalable colocation for businesses of all sizes, from startups to enterprises
• Low-latency connections with direct access to cloud providers
• Reliable data centers across Iceland for maximum uptime and security

📞 Call now for expert advice or request a free consultation!