KIO CEO Octavio Camarena on AI readiness in LATAM

Latin America’s (LATAM) digital infrastructure landscape has undergone a powerful shift, moving beyond simple storage to full-scale, neutral and collaborative ecosystems.

Last year, the LATAM data centre market was estimated to be around US$5.14bn in 2024 and was predicted to grow to US$7.81bn by 2029. The region now houses a range of hyperconnected environments that enable high-speed data to network operators and cloud providers.

Operating within this landscape is KIO, a company that helps to power businesses with AI, cloud, cybersecurity and infrastructure services. Its CEO, Octavio Camarena, explained to Capacity how the company has been working at the forefront of this change in the industry, as it continues to connect clients and service providers across LATAM.

“This evolution has transformed digital infrastructure from a hosting service into a powerful platform for innovation,” Camarena said. “Now, neutrality, deep interconnection and a strong ecosystem are just as critical as uptime. This is a strategic pivot from merely hosting to actively enabling digital transformation.”

Meeting AI infrastructure requirements

Camarena cites the primary drivers of data centre demand across LATAM currently as:

Cloud and SaaS location: Enterprises and governments are repatriating workloads to meet data sovereignty, latency and cost objectives

AI adoption: The rise of AI inference and edge processing is pushing up demand for high-density compute

Nearshoring: Mexico’s proximity and cultural alignment with the US make it the “logical extension” of North America’s digital economy

Ecosystem effect: As more global and local players co-locate within neutral, interconnected campuses, value and interest of being part of that community increases

He added: “Once clients are in, they tend to stay. Migrating from a data centre is complex, but more importantly, the connectivity, security and interdependence they gain inside our ecosystem make switching impractical.

Notably, the need for AI infrastructure is reshaping data centre requirements. The LATAM region has successfully entered this next era of digital transformation with strong momentum, but this readiness has depended on power availability.

“You can’t build AI capacity without secured, scalable, and reliable energy,” Camarena said. “We’ve spent more than two decades mastering how to source, phase and deliver power in markets where energy access is not a given.”

The Mexico advantage

KIO is headquartered in Mexico, which has become somewhat of a benchmark for the data centre industry. As the industry across the country has powered forward, its prime central location and connection to North America and LATAM has given it a strong foothold for internet infrastructure.

The country’s proximity to the US also enables very low latency between major markets, which has unlocked nearshoring opportunities for cloud and AI workloads. In the state of Querétaro alone, it has been forecast that more than US$10 billion in data centre-related investments will take place within the next decade.

“It’s a real advantage, because in Mexico you can’t simply “dial up” megawatts. You need deep local knowledge and the right relationships to make projects work,” Camarena explained.

The next wave of investment in the data centre industry is focused on energy, but also “high-density, liquid-ready infrastructure, robust interconnection and talent,” Camarena added. “Training models require locality (meaning data must stay close to its users) and Mexico is ideally positioned to serve as an AI hub for both LATAM and North America.”

What sets KIO apart

Perhaps unlike other new entrants to market, KIO is familiar with how to secure and deliver megawatts in a complex environment. Its this capability that has given the company its strategic edge, alongside its neutrality to enable enterprises to interconnect freely.

“It’s a true marketplace where buyers and sellers coexist, competition drives value and the whole ecosystem grows stronger,” Camarena told us. “This model can absolutely be replicated across LATAM, provided local execution matches the vision. But to achieve this success, you have to understand the terrain, policy and power landscape.”

KIO’s partnership with Lonestar Data Holdings, a company developing data storage and processing solutions in space, addresses the challenge of keeping data secure.

During a time of unprecedented growth, the wider industry is reckoning with issues of risk and sovereignty. To tackle this, KIO linked its terrestrial facilities with Lonestar’s space-based storage network to introduce a new layer of protection.

“It’s physically beyond the reach of natural disasters, cyberattacks and geopolitical disruption. Traditional infrastructure, no matter how advanced, still lives within the same physical and cyber environment where most threats occur,” Camarena said.

“Our role is to provide the ground connection – the secure ‘digital consulate’ that bridges Earth and orbit. Lonestar’s satellites act as ‘data embassies’ where critical workloads can be preserved in an environment powered by solar energy and naturally cooled in the vacuum of space.”

The first phase of this process involves data storage in low-Earth orbit, which will eventually expand to lunar-based data centres. Camarena explained that governments and businesses with high-value or sovereign data – including in key sectors like finance, healthcare, defence and energy – will benefit the most.

“We’re combining terrestrial and orbital layers to ensure data remains secure, accessible and sovereign no matter what happens on the ground,” he added. “It’s a logical extension of how critical infrastructure must evolve as the digital economy scales beyond Earth.”

Beyond the expected

Eager to push beyond orbital storage, KIO’s vision is to be the partner of choice for any organisation entering or expanding across LATAM. Already, the company has announced a second data centre in Guatemala in its bid to enhance connectivity for Central America.

“It’s a clear example of how we’re expanding our ecosystem and strengthening local markets while enabling cross-border connectivity,” Camarena said.

He added that, over the next five years, KIO will build on three priorities: AI-ready infrastructure, expanded interconnection ecosystems and operational trust and efficiency. It will aim to do this by strengthening its neutral- carrier-dense campuses so that enterprises, networks and cloud providers to interconnect and reduce latency across the region.

“We’re watching advances in power efficiency, liquid cooling and edge-to-core architectures that align performance with sustainability,” he added. “Our goal is to enable an interconnected digital ecosystem that makes Latin America a central, dependable hub for connectivity.”

ISQ buys Mexican data centre operator KIO Networks ‘for $1bn’