Introduction
The advancement of artificial intelligence (AI) and other emerging technologies, such as recent innovations in fiber optic connectivity and 5G, are set to reshape the landscape of data centers and the entire infrastructure of connectivity on a global scale, including Mexico. While these technologies may sound technical, their economic implications and development opportunities for businesses or countries are far-reaching.
The Role of AI, Data Centers, and Enhanced Connectivity
Carlos Hernández, Director of Regional Sales for Ciena in Latin America, explained that these new technologies will open up new frontiers for various productive sectors of the economy. He highlighted that Mexico can further strengthen its manufacturing processes with the support of AI, data centers, and enhanced connectivity along with other emerging innovations.
Mexico’s Industrial Sector
Industries in Mexico account for approximately 28% of the nation’s GDP. The country is already a leader in subsectors such as automotive, electronics, textiles, pharmaceuticals, food production, aerospace, energy generation and distribution, and mining. However, Hernández believes that AI, data centers, and enhanced connectivity can further boost Mexico’s GDP through digital transformation of the economy.
AI and Data Centers
Hernández emphasized that AI, combined with the expected development in data centers for both training and effective utilization (inference) in applications for both users and industries, will bring a significant advancement to the manufacturing sector.
Edge Computing and Distributed Data Centers
The use of edge computing devices that process data closer to users, especially in applications requiring very low latency, will play a central role. Moreover, the growing distribution of data centers geographically will cater to new needs for energy consumption and proximity to end-users, among other factors. Connecting these distributed data centers with high-speed networks will be crucial.
Mexico’s Position in the Regional and Global Context
Peter Wood, Senior Research Analyst at TeleGeography, noted that Mexico has a recognized superhub for data centers in Querétaro, close to Mexico City and business centers. However, he stressed the need for proximity to data centers for leveraging the potential of specific applications sensitive to latency in industries like healthcare and aerospace.
Key Challenges and Opportunities
Energy Availability
Hernández pointed out that one of the initial challenges is ensuring abundant energy availability, a problem not exclusive to Mexico. Another challenge is determining where to start building this type of infrastructure.
Diversification and Submarine Cables
He recommended that countries consider diversification, including the increasing number of submarine cables reaching Mexico’s shores. This diversification is essential for ensuring robust telecommunications infrastructure and advancing economies into a new era.
Key Questions and Answers
- Q: How will AI, data centers, and enhanced connectivity impact Mexico’s economy? A: These technologies can significantly boost Mexico’s GDP through digital transformation, making the country more attractive for investment in the coming years.
- Q: What role do data centers play in Mexico’s economic growth? A: With almost 40% of data centers in Latin America, Mexico can further strengthen its manufacturing processes and other industries by leveraging AI, data centers, and enhanced connectivity.
- Q: Why is edge computing important for industries in Mexico? A: Edge computing enables faster data processing, reducing latency and improving security, which is crucial for industries sensitive to latency, like healthcare and aerospace.
- Q: What challenges does Mexico face in implementing these technologies? A: Key challenges include ensuring abundant energy availability and determining the optimal locations for building data center infrastructure.
