Mexico is set to commence construction on a new public data centre in Tulancingo, Hidalgo. However, the project currently lacks an allocated budget and was not included in the second government report of President Claudia Sheinbaum. The Digital Transformation and Telecommunications Agency (ATDT), which is overseeing the initiative, claims to have a financial strategy in place: it intends to utilise approximately 1.35 billion pesos in savings generated by discontinuing the hosting of data and systems from around fifty government entities in private data centres.
The ATDT stated in a transparency request that the absence of a budget is due to the project being “in the planning phase.” Nevertheless, Infrastructure Coordinator Jorge Luis Pérez Hernández has expressed confidence that planning is more advanced than previously indicated. He anticipates that construction will commence by mid-November, with initial data migrations expected by mid-2027.
Funding Strategy for the Data Centre
Pérez Hernández emphasised the importance of data sovereignty and infrastructure independence. The proposal to establish a data centre in Tulancingo to house strategic systems and data from various federal agencies has been a focus of Sheinbaum’s administration since its inception. The initiative was first announced in September 2025 during her inaugural government report, and reiterated by the Ministry of Finance in the budget rationale for 2026, although no financial allocation was specified to initiate the civil works.
The official remains optimistic about the project’s commencement and outlines a funding mechanism that involves deferring payments, in line with provisions set forth in the Infrastructure for Welfare Law. He cited the financing model used for the Bicentennial satellite as a successful precedent. According to the ATDT, the plan involves starting the construction work now and financing it later with the anticipated savings of 1.35 billion pesos from technology contracts of the various agencies currently relying on private data centres, which would transition to Tulancingo.
Although the project was not mentioned in the second government report, the agency plans to disclose progress details in the upcoming third report. The total investment will be executed in three phases, starting with an initial expenditure of 1.1 billion pesos.
Technical Specifications of the Proposed Data Centre
The first phase of the new data centre will comprise approximately 120 cabinets, with an estimated power consumption of between 3 and 5 MW. Following this, two additional PODs, each ranging from 3 to 3.5 MW, will be constructed, leading to a total consumption not expected to exceed 11 MW. This represents a significant increase compared to the existing Aguascalientes node, which operates at a mere 2 MW. In comparison to the six buildings planned by CloudHQ in Querétaro, each with a maximum load of 48 MW, the projected capacity for the Tulancingo centre appears modest. Currently, Querétaro boasts over 200 MW of power capacity, with aspirations to reach 1,300 MW by 2030, as reported by the Mexican Data Centre Association, which represents leading industry players.
Adriana Rivera, director of the data centre association, noted that governmental data hosting in commercial centres is relatively scarce. She believes that the public sector’s entry into this market could enhance connectivity and considers it a strategic move for the government to develop its own infrastructure.
Environmental Considerations and Public Concerns
The environmental impact of data centres, particularly concerning their water and energy consumption, has drawn scrutiny from international organisations such as Oxfam. Their recent report titled ‘The Footprint of Clouds’ highlights the significant resources consumed by these infrastructures. President Sheinbaum has also acknowledged these environmental concerns, stating during a recent morning conference that Mexico should avoid becoming a data centre for other nations. Notably, she previously welcomed representatives from tech giants like AWS, which announced a $5 billion investment in Mexico in 2025.
Nonetheless, Pérez Hernández insists that the public data centre is designed to support federal government services, rather than compete with the influx of large tech firms. The ATDT’s Infrastructure Chief stated that issues related to excessive energy and water usage have been addressed; the facility’s machines will be cooled using precision air systems, and energy supply will be assured through agreements with the National Energy Control Centre (Cenace) and the Federal Electricity Commission (CFE).
Lessons from International Models
References to the Tulancingo data centre were notably absent from the second government report, which instead highlighted the establishment of NubeMx as the “digital public infrastructure” of the federal government. While both Aguascalientes and Tulancingo were mentioned, the report focused primarily on the former, branding it the “largest public data centre in the country.”
The Tulancingo centre draws inspiration from policies adopted in other nations that are developing their own infrastructures. Colombia, for instance, under former President Gustavo Petro, launched a public cloud composed of three data centres, while France successfully migrated its health system data to a national enterprise.
When fully operational, the Tulancingo project is expected to quintuple the capacity of the current facility in Aguascalientes, occupying 15,000 square metres within the 44 hectares of the Tulancingo Ground Station. This site previously hosted the Tulancingo 1 antenna, which facilitated the colour broadcasting of the 1968 Mexico Olympics. Six decades later, it is poised to play a crucial role in a new technological infrastructure aimed at safeguarding governmental data and systems.