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Energy challenge creates challenge to supply industrial demand
Mexico Industry | November 29, 2023 |

According to data from the Ministry of Economy (SE) of Mexico, in the last three years, the country has experienced a 30% increase in the arrival of investments related to relocations, promoting the creation of jobs and strengthening various economic sectors.

This nearshoring phenomenon has emerged in Mexico as an economic catalyst, promising a horizon of growth, but it still hides behind it an important energy challenge.

Demand for electrical energy is on track to experience a substantial increase due to the arrival of new companies, raising questions about the capacity of the country's energy infrastructure.

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Geographic proximity to North American markets, combined with competitive costs and a highly skilled workforce, has led to a significant influx of new businesses.

Manufacturing facilities, data centers and offices require a significant amount of electricity to maintain their operations, posing a challenge to current energy infrastructure.

According to projections from the Federal Electricity Commission (CFE), it is estimated that the demand for electrical energy in Mexico will grow at an annual rate of 3% in the next five years, mainly driven by industrial growth related to nearshoring. This increase represents a significant challenge to current power generation and distribution capacity.

New manufacturing facilities are expected to require a 25% increase in electrical supply, according to a report from the National Association of Manufacturers (NAM). Added to this is the boom in the construction of data centers in Mexico, according to data from the global market analysis firm IDC.

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According to experts, the increase in energy demand could be addressed by investing in renewable energy sources, such as solar and wind, thus reducing dependence on non-renewable resources.

The crucial point focuses on improving transmission and distribution capacity, where according to World Bank estimates, at least $30 billion needs to be invested in the next five years to strengthen its electrical infrastructure.

Strategic investments in renewable energy, modernization of electrical infrastructure and policies that promote energy efficiency are essential steps to ensure that Mexico makes the most of this economic boom without compromising its energy stability.

At Solili you can consult industrial warehouses in Guadalajara, Tijuana and Monterrey

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