By Valentine Hilaire
MEXICO CITY (Reuters) – Mexican firm KIO is aiming to double the capacity of its data centers over the next two years, taking advantage of President Andres Manuel Lopez Obrador’s drive to boost nearshoring and tech firms’ expanding Latin American footprint.
“Our growth plan involves creating over the next two years the same capacity we have accumulated in the last 22 years. It will be a significant investment,” KIO’s Chief Executive Officer Jorge Sapien said in an interview on Tuesday.
Sapien added that the adoption of data centers in the region has been slow due to companies’ apprehension towards outsourcing the hosting of their data.
KIO, which operates in five countries and has 20 data centers in its portfolio, is expanding operations in the northern Mexican city Monterrey after acquiring land for its new data campus.
The expansion is strategic for the company as it expects to serve firms coming to Mexico due to the nearshoring trend, said Sapien.
Nearshoring has seen increasing numbers of companies move production closer to North American buyers – specifically to Mexico – and away from Asia, following supply chain snarls during the pandemic.
KIO’s growth plans also include Panama, Guatemala, Colombia and Spain.
“We are expanding like never before,” Sapien said.
(Reporting by Valentine Hilaire; Editing by Christopher Cushing)
