The Global Economy’s New Digital Era
In the current global economic landscape, digital infrastructure has become as strategic as railroads were in the 19th century and electrification was in the 20th century. The International Monetary Fund (IMF), World Bank, Organisation for Economic Co-operation and Development (OECD), and Inter-American Development Bank (BID) all agree that a country’s competitiveness will hinge on its ability to deploy robust connectivity networks, attract data centers, process information in real-time, and meet the energy demands of artificial intelligence.
Mexico’s Historic Opportunity
In this context, Mexico faces a historic opportunity: to become a regional digital hub if it accelerates investments and closes structural gaps that have been accumulating for years.
IMF’s Perspective
The IMF estimates that adopting digital technologies and artificial intelligence could boost global productivity by up to 1.5% annually in advanced economies. However, they also issue a warning: the benefits won’t come automatically. Automation will displace routine tasks and widen the gap between skilled and unskilled workers. The challenge is clear: foster innovation without deepening inequalities.
World Bank’s Emphasis
The World Bank stresses that digital infrastructure is the new bedrock of development. Countries with solid connectivity show greater resilience to external shocks, entrepreneurial dynamism, and better financial inclusion opportunities. Conversely, nations with wide digital divides risk becoming structurally lagging.
OECD’s Additional Insight
The OECD adds that companies adopting advanced technologies, from data analytics to intelligent automation, are more productive, export more, and pay better wages. However, they caution that technological concentration among a few firms could reduce competition.
Latin American Context
According to the Inter-American Development Bank, Latin America cannot afford to fall behind. Digitalizing public services, expanding connectivity, and adopting technology in traditional sectors are crucial for growth. The Bank estimates that closing the digital gap could increase the regional GDP by up to 5.0% in the medium term.
Mexico’s Current Reality
In this global context, a conversation with Carlos Mendoza, Director of Infrastructure at C3ntro Telecom, brings the discussion to Mexico’s reality. Mendoza identifies three forces driving demand for connectivity in the country: nearshoring, rapid expansion of data centers—especially in the Bajío where AWS and others are setting up critical infrastructure—and the rise of artificial intelligence, which multiplies data processing and transportation needs.
C3ntro Telecom’s Strategy
C3ntro Telecom has divided its strategy into two fronts: metropolitan networks to connect end-users and businesses in key cities, and long-distance networks to interconnect industrial regions, data centers, and international routes to the United States. A notable project in this second front is the Pacific Route, a 2,500 km underground fiber-optic network connecting Querétaro to Phoenix, passing through Sinaloa, Sonora, and Nogales.
Impact of the Pacific Route Project
Mendoza explains that this new route will reduce latency, increase capacity, and connect Mexico to submarine cables arriving from Asia. Phoenix has also become a hub for data centers and a strategic point for global digital traffic. The OECD has emphasized that low latency is a key determinant of digital competitiveness, especially for advanced manufacturing, logistics, and financial services.
Investment and Job Creation
The $150 million investment, funded by Mexican private capital, is significant in a sector dominated by multinationals. It shows that national companies are willing to invest in strategic infrastructure. Construction also crosses rural and mountainous areas, creating between 200 and 300 direct jobs in regions historically underserved by telecommunications investment.
BID’s Documentation
The BID has documented that digital infrastructure in rural areas has a multiplier effect: it improves agricultural productivity, promotes distance education, and opens opportunities for small businesses.
Energy as a Bottleneck
However, there’s an undeniable bottleneck: energy. The growth of data centers, demanding between 50 and 100 megawatts per project, is putting pressure on the electrical infrastructure. Mendoza acknowledges Mexico’s generation capacity but lack of transmission infrastructure. The Mexican Data Centers Association, along with the private sector and CFE, is working on a two-year plan to expand the electrical network. The IMF has warned that transitioning to data-intensive economies will require massive investments in energy, particularly transmission and renewables.
Looking Ahead
C3ntro Telecom’s new fiber-optic network will be ready for clients in 2026, coinciding with the anticipated nearshoring acceleration, cloud expansion, and arrival of new AI generative applications. Mexico is uniquely positioned to become a digital hub for the continent. However, it must maintain the pace of infrastructure, energy, and smart regulation investments to achieve this goal.
Key Questions and Answers
- What is the significance of digital infrastructure in today’s global economy? Digital infrastructure has become as strategic as railroads were in the 19th century and electrification was in the 20th century, according to the IMF, World Bank, OECD, and Inter-American Development Bank.
- How can Mexico benefit from this digital shift? Mexico has a historic opportunity to become a regional digital hub by accelerating investments and closing structural gaps.
- What challenges does the rapid growth of data centers pose? The growth of data centers puts pressure on electrical infrastructure, requiring significant investments in transmission and renewables.
- What role does C3ntro Telecom play in Mexico’s digital future? C3ntro Telecom is investing in both metropolitan and long-distance networks to support Mexico’s digital growth, with a key project being the Pacific Route fiber-optic network.
- How does the new digital infrastructure impact rural areas? According to the BID, digital infrastructure in rural areas can improve agricultural productivity, promote distance education, and open opportunities for small businesses.
