Mexico Gas Demand Rises With AI Data Centers, Nearshoring

Mexico will need significantly more natural gas infrastructure as nearshoring, advanced manufacturing and rapidly expanding artificial-intelligence and data-center investment increase demand for reliable energy, according to the Mexican Natural Gas Association.

MONTREAL (Oil Monster): Natural gas will remain central to Mexico’s energy security and industrial development as the country faces rising power requirements from nearshoring, advanced manufacturing, artificial intelligence and data centers, according to Alfredo Bejos Inclán, president of the Mexican Natural Gas Association, or AMGN.

Bejos said meeting that demand will require continued investment in natural gas transportation, storage and distribution networks to ensure reliable energy supplies for new industrial and technology projects.

AI and Data Centers Add a New Energy Demand Layer

The expansion of Mexico’s digital economy is adding another source of large, continuous electricity demand alongside traditional manufacturing growth.

The Mexican Association of Data Centers, or MEXDC, reports approximately 279 MW of installed data-center capacity in Mexico, with another 205 MW under construction during 2026.

By 2031, the industry projects that required capacity could reach approximately 1.73 GW.

The Federal Electricity Commission and MEXDC have begun coordinating on future data-center locations, expected loads and infrastructure requirements so generation, transmission, distribution and storage needs can be evaluated before projects enter service.

The data-center figures refer to electricity requirements and should not be interpreted as a forecast that all new facilities will be powered by natural gas. They do, however, illustrate the additional pressure large digital loads could place on Mexico’s broader energy system.

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Natural Gas Already Supports Much of Mexico’s Power System

AMGN says approximately 60% of Mexico’s electricity generation relies on natural gas, underscoring the fuel’s existing importance before additional industrial and digital demand is considered.

The power sector is also Mexico’s largest natural gas consumer. Previous government planning data cited by industry groups put power-sector gas use at roughly 4.98 billion cubic feet per day in 2024, or about 56.9% of national gas demand.

Bejos said natural gas and renewable generation should increasingly operate alongside one another as Mexico adds cleaner power capacity while preserving reliable electricity supply.

Mexico Imports About 75% of Its Natural Gas

The expansion challenge is not limited to demand.

Mexico currently imports roughly 75% of the natural gas it consumes, primarily from the United States, according to figures presented by a federal natural gas commission in August.

That level of dependence makes cross-border pipelines and domestic transportation infrastructure critical to the country’s power system and industrial economy.

U.S. Department of Energy data show pipeline and truck gas exports to Mexico reached 228.7 billion cubic feet in June 2026, continuing the large cross-border energy flows between the two countries.

Gas Infrastructure Expansion Already Underway

Mexico has already announced a major expansion and modernization program for its natural gas network.

The government outlined approximately 140.9 billion pesos, or about $8.1 billion at the exchange rate reported when the plan was announced, in pipeline investment through 2030.

The program includes new pipelines, rehabilitation work, compression infrastructure and projects intended to supply new gas-fired generation capacity.

Read OilMonster’s full report on Mexico’s $8.1 billion natural gas pipeline expansion.

Large Parts of Mexico Still Lack Gas-Network Coverage

Infrastructure access remains uneven despite the importance of natural gas to the national power and industrial sectors.

Mexico’s National Natural Gas Control Center, or CENAGAS, says more than 35% of the country remains disconnected from the natural gas network, with significant gaps in rural and peripheral areas.

The limited reach is also visible at the household level.

An AMGN and IMCO study using Mexico’s 2022 household income and expenditure survey found that approximately 8.6% of Mexican households used natural or piped gas, compared with 76% using bottled or tank gas.

That distinction is important: the figure measures household fuel use rather than the percentage of homes physically capable of connecting to a distribution network.

Nearshoring Depends on More Than Factory Space

AMGN argues that reliable energy availability is increasingly becoming part of Mexico’s investment proposition as companies move manufacturing and supply-chain activity closer to the United States.

Modern manufacturing plants, automated facilities and data centers require large amounts of dependable electricity, making the availability of generation, transmission and fuel infrastructure a factor in where projects can be developed.

The issue is particularly important for industrial regions seeking to attract energy-intensive manufacturing and digital infrastructure.

Permits and Storage Remain Part of the Challenge

AMGN called for stronger cooperation between government and private industry to accelerate the development of transportation, storage and distribution infrastructure.

The association said clearer regulatory processes and timely permits could help attract additional private capital to energy infrastructure.

Storage is another component of the resilience discussion because Mexico’s natural gas system remains strongly integrated with U.S. pipeline supply.

Gas and Renewables Expected to Develop Together

Looking ahead, AMGN expects natural gas and renewable energy to play complementary roles as Mexico expands clean electricity generation.

The association said a long-term strategy will need to address the full natural gas value chain, including production, transportation, storage, distribution and commercialization.

The combination of industrial growth, nearshoring and rapidly expanding digital infrastructure means Mexico’s gas debate is increasingly about more than current consumption. It is also about whether the country can build energy infrastructure quickly enough to support the next phase of investment.