Mexican data center firm Kio is planning to double its data center capacity over the next two years, reports Reuters.

"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," said Kio chief executive officer, Jorge Sapien.

The expansion will see Kio developing data centers in Panama, Guatemala, Colombia, and Spain. The company commenced construction on a new data center in the latter earlier this year, planning a 1,000 sqm facility in Paterna, Spain.

Sapien noted that, up till now, the adoption of data centers in Mexico and Latin America has been slow due to companies’ apprehension towards outsourcing data hosting.

Latin America is currently experiencing a significant boom in growth. This, along with Mexican President Andres Manuel Lopez Obrador’s (AMLO) push to boost nearshoring, is hoped to aid Kio’s goal.

AMLO met with US President Joe Biden and Canadian Prime Minister Justin Trudeau in January of this year to discuss the semiconductor and critical minerals supply chain and emphasized Mexico’s nearshoring potential. The three leaders also committed to a trilateral semiconductor industry forum planning to boost investment in the segment within the region.

The boost to nearshoring is expected to see manufacturing firms relocating to Mexico, thus driving a need for more IT capacity in the region.

Kio, which was acquired by I Squared Capital in 2021, currently operates 20 data centers in Mexico, Central America, the Caribbean, Colombia, and Spain. The company’s 13 core data centers offer a combined 26MW of IT capacity.

Earlier this month, Kio was selected to host the DE-CIX internet exchange in Mexico City and Santiago de Queretaro. The company announced plans for its third data center in Queretaro in February 2023.