AWS Invests $5 Billion in Mexico and Opens New Data Center Region Amazon Web Services (AWS), the cloud computing division of Amazon, has announced a $5 billion investment in Mexico over the next 15 years. This investment is part of a long-term commitment to expanding cloud services in the country. A key part of this plan is the launch of a new AWS server region in Mexico, called AWS Mexico (Central) Region, which will allow businesses and developers to run applications from local AWS data centers. According to AWS, the construction and operation of this new data center region could add $10 billion to Mexico’s GDP and support around 7,000 jobs. However, most of these jobs will come from external businesses like construction and telecommunications firms that support AWS, rather than direct AWS hires. Some experts suggest that the actual number of jobs created could be lower than AWS estimates, as data centers typically require fewer workers once they are fully operational. AWS is not the only company investing in Mexico’s booming data center market. Other tech giants, such as Google and Microsoft, have also set up cloud infrastructure projects in the country. Querétaro, the city where AWS Mexico is located, has become the center for tech investments in Mexico. Google launched a cloud data center in Querétaro in December 2024, and Microsoft built a server farm there in May 2024. Experts predict that 73 new data centers will be constructed in Mexico within the next five years, with tech companies expected to spend over $7 billion on infrastructure during that time. While these investments bring economic growth, they also create challenges for Mexico’s power supply. The Mexican Data Center Association (MDCA) estimates that new data centers could consume 1,492MWh of electricity by 2029, enough to power 150,000 homes. To support this demand, the Mexican government and private companies may need to invest $8.73 billion to upgrade the country’s power grid. Environmental groups have also raised concerns about data centers’ impact on water resources. Most data centers require large amounts of water for cooling to keep computer servers from overheating. Querétaro has been experiencing a drought for two years, and Mexico’s 2025 dry season is expected to last at least six months. AWS has responded to these concerns by saying that its AWS Mexico data center will use air-cooling technology, meaning it will not require water for cooling. Similarly, Microsoft has promised to use new technology to reduce water consumption, and Google has pledged to partner with environmentally responsible suppliers to reduce its water use. AWS’s $5 billion investment in Mexico is a major step toward expanding cloud computing services in the country. With other tech giants investing in Mexico, the nation is quickly becoming a global data center hub. However, energy and water demands will be key challenges that Mexico’s government and businesses must address to ensure that these projects remain sustainable and beneficial for the long term.
