In an announcement Tuesday, Amazon Web Services (AWS), Amazon’s cloud computing division, said it plans to invest $5 billion in Mexico over the next 15 years as a part of a “long-term commitment” in the region.
A portion of that investment is a new server region in Mexico launching today, AWS Mexico, that will allow AWS customers to run applications and serve users from AWS data centers located in the country. AWS estimates that construction and ongoing operation of AWS Mexico will add roughly $10 billion to Mexico’s GDP and support roughly 7,000 “full time equivalent jobs.”
“This launch marks a significant step as we continue to expand our infrastructure and deliver global innovation in machine learning, AI, and other advanced technologies for our customers,” AWS VP of infrastructure services Prasad Kalyanaraman said in a statement. “With access to secure and reliable infrastructure, along with a broad set of AWS technologies, this new AWS region will help businesses across Mexico sit at the center of AI and machine learning innovation.”
The data center market in Mexico is booming. According to one source, tech companies are expected to spend more than $7 billion on data center infrastructure in the country in the next five years, and over a dozen projects are currently underway.
The city of Querétaro, where AWS Mexico is located, has become the investment epicenter. Google launched a cloud data center in Querétaro in December, while Microsoft spun up a server farm in the city last May.
As many as 73 data centers are expected to be constructed in Mexico over the next five years — a volume that experts say will seriously impact the country’s power grid. According to the Mexican Data Center Association (MDCA), an industry group, the new infrastructure could consume as much as 1,492MWh of power by 2029, enough to power around 150,000 homes.
To meet the electricity demand, the MDCA estimates that the Mexican government and companies will need to invest at least $8.73 billion to upgrade Mexico’s grid and power suppliers.
Environmental advocates have also raised concerns about the data centers’ long-term impact. Data centers are typically water-hungry; they require water not only to cool components like chips, but to maintain a safe operating humidity. Querétaro has been suffering from drought for two years, and Mexico’s 2025 dry season is expected to last at least six months.
AWS said that its AWS Mexico data center will be air-cooled and “will not require the ongoing use of cooling water in operations.” Microsoft has said that its data center in the region would use new tech to reduce its use of water for cooling, and Google has pledged to partner with “environmentally responsible” supplies to reduce consumption.
