Mexico IT Spending to Jump 236% by 2029 Driven by AI, Edge

Corporate spending on Information Technology (IT) in Mexico is projected to grow 236% between 2025 and 2029, reaching MX$110.5 billion (US$6.1 billion), according to Dell and IDC. This growth is driven by the accelerated adoption of AI and the demand for infrastructure supporting data processing at the edge. The trend implies a restructuring of IT architecture, prioritizing computing capacity in proximity to data generation.

The necessity for decentralized processing serves as a primary driver for this expansion. By 2027, 34% of workloads will be at the edge, says Juan Francisco Aguilar, Director General, Dell Technologies México. Mexican businesses will thus undergo a transition, taking a significant portion of data processing away from traditional data centers and centralized cloud infrastructure. 

Edge computing requires analysis and decision-making to occur at the data origin, such as at points of sale, production lines, or user devices. This process minimizes reliance on centralized infrastructure. This shift is critical for the efficient deployment of AI applications, which require high computing capacity and immediate response to generate business value.

Investment priorities in Mexico reflect this trend. The number one investment priority focuses on cloud security (44% of companies), followed by Generative AI (27%), and machine learning or traditional AI (18%). The prominence of cloud security as the highest priority also suggests a proactive stance toward cyber risks, especially within hybrid and multi-cloud architectures.

Edge infrastructure serves as a complement, not a replacement, for cloud infrastructure. The prevalent approach in the market is the hybrid cloud model, which integrates local infrastructure (on-premises) with public cloud solutions. This approach allows organizations to maintain control of sensitive data and critical workloads locally, while simultaneously leveraging cloud scalability for other operations. Aguilar notes that the multi-cloud environment, resulting from previous migrations to public cloud solutions combined with data retention on-site, combined with the scale required by AI and the need for edge processing, drives this hybrid approach.

About eight out of 10 companies in Mexico already use AI, primarily for virtual assistants designed to improve customer service by answering frequent questions, reports Dell. At a more advanced level, three out of 10 organizations are investing in training their own AI models, an activity that demands significant processing and storage resources.

Dell reveals that the industries with the highest AI adoption, and consequently the highest utilization of server and edge computing infrastructure, are the financial, manufacturing, and retail sectors. These segments are characterized by large-scale data handling and the necessity for tailored solutions to meet standards for cybersecurity, compliance, and adequate customer service. 

The expansion of AI usage in these sectors drives the demand for specific hardware and software, including servers, racks, switches, and storage systems, which positions technology providers such as Dell Technologies as key players in the ecosystem. Mexico’s market is one of the 15 most important markets globally for Dell Technologies, reflecting its strategic importance in Latin America.