Neutral Networks to invest US$80mn in Mexican fiber push

Telecoms infra company Neutral Networks plans to invest US$80mn to expand its fiber network from Laredo to Mexico City, passing through the Mexican datacenter hub of Querétaro, according to press reports.

Last July, Neutral Networks had some 3,500km of fiber optics deployed and a presence in 12 cities. Of the total, 600km were in Tijuana, 474km in Monterrey, 313km in Chihuahua, 270km in San Luis Potosí and 122km in Mexico City.

In an interview with BNamericas last year, CEO Gabriel Navarro said Neutral Networks was deploying fiber to provide connectivity to datacenters in Querétaro.

"We have 60km built under this type of infrastructure and we have a project to build 150km more," Navarro said at the time.

Neutral Networks uses fiber provided by Prysmian and optical equipment by Infinera.

The company’s strategy is to build the long-distance network from Laredo to Monterrey as phase 1, while phase 2 is to build the Monterrey-Querétaro network and phase 3 is Querétaro-Mexico City, the CEO said in a press conference.

The entire deployment is projected to take three years, during which time new Querétaro datacenters are expected to be built. 

Navarro also told reporters that companies such as Tesla, which is expected to build a US$1bn electric car plant in Monterrey, as well as Tesla’s suppliers, could benefit from GTD’s existing fiber network and expand the services they offer.

The newly formed Mexican datacenter companies’ association, MEXDC, projects investments of over US$8.5bn in the next 10 years in the local industry, mostly in the Querétaro region.

The entity has as founding members Ascenty, DCD, Equinix, Layer 9 Data Centers, Odata, Scala and KIO.