Amazon Web Services (AWS), the cloud computing arm of Amazon, announced on Tuesday a significant investment of $5 billion in Mexico over the next 15 years. This initiative underscores AWS’s long-term commitment to fostering growth in the region.
A major highlight of this investment is the launch of the AWS Mexico (Central) Region, a server hub now operational, allowing customers to host applications and deliver services directly from AWS facilities in Mexico. AWS projects that this development will contribute roughly $10 billion to Mexico’s GDP and create about 7,000 full-time-equivalent jobs.
However, these jobs won’t come directly from AWS. Instead, the company anticipates roles emerging from businesses within its supply chain in Mexico, including construction and telecom sectors. Despite these projections, experts caution that job creation from data center projects often falls short of initial estimates.
This new region marks AWS’s third major project in Mexico, following smaller-scale launches in 2020 and 2023. “This milestone signifies our commitment to infrastructure expansion,” noted Prasad Kalyanaraman, AWS’s VP of infrastructure services. He emphasized how this investment would empower Mexican businesses to lead in AI and machine learning advancements.
Mexico’s data center market is rapidly expanding. Over $7 billion in tech investments are expected within the next five years, with about a dozen data center projects currently underway. Querétaro, the city hosting AWS’s latest region, has become the nation’s hotspot for data infrastructure. Other tech giants are also investing in Querétaro — Google launched a cloud facility there last December, while Microsoft opened a server farm in May.
Industry experts anticipate the construction of 73 new data centers across Mexico within five years, a development that could strain the nation’s energy resources. The Mexican Data Center Association (MDCA) estimates these facilities could demand as much as 1,492MWh of electricity by 2029 — equivalent to powering 150,000 homes. Meeting this demand would require over $8.73 billion in upgrades to the national power grid.
Environmental concerns add to the challenges. Data centers often consume large amounts of water for cooling and maintaining optimal humidity levels. Querétaro, already grappling with a two-year drought, faces predictions of a six-month dry season in 2025.
AWS aims to address these concerns by utilizing air-cooling systems that don’t rely on water for operation. Similarly, Microsoft is incorporating water-saving technologies, and Google has pledged to collaborate with eco-conscious suppliers to minimize resource consumption.
