In an announcement made on Tuesday, Amazon Web Services (AWS), the cloud computing division of Amazon, revealed its plan to invest $5 billion in Mexico over the next 15 years, as part of a long-term commitment to the region. As a part of this investment, a new server region called AWS Mexico (Central) Region is launching today. This will enable AWS customers to run applications and serve end users from AWS data centers located in Mexico. AWS predicts that the construction and ongoing operation of AWS Mexico will contribute approximately $10 billion to Mexico’s GDP and support around 7,000 full-time equivalent jobs.
To clarify, AWS will not be directly hiring around 7,000 new staff in Mexico. Instead, the company expects that external businesses within the AWS supply chain in Mexico, such as construction and telecommunications firms, will create these jobs. However, the actual number of jobs created may differ from the estimate, as data center projects often generate fewer jobs than anticipated.
The AWS Mexico server region, which was initially announced in February, marks the company’s third infrastructure project in the country following smaller initiatives in 2020 and 2023. The data center market in Mexico is experiencing significant growth, with tech companies projected to spend over $7 billion on data center infrastructure in the country over the next five years. Currently, there are approximately a dozen data center projects underway in Mexico, with Querétaro emerging as a key investment hub. Google launched a cloud data center in Querétaro in December, while Microsoft established a server farm in the city last May.
According to industry experts, up to 73 data centers are expected to be built in Mexico in the next five years, potentially impacting the country’s power grid. The Mexican Data Center Association (MDCA) estimates that the new installations could consume as much as 1,492MWh of electricity by 2029, equivalent to powering around 150,000 homes. To address the growing energy demand, the Mexican government and companies will need to invest at least $8.73 billion to upgrade Mexico’s grid and power supplies.
Furthermore, environmental advocates have expressed concerns about the long-term effects of data centers. These facilities are typically water-intensive, requiring water for cooling components like chips and maintaining safe operating humidity levels. With Querétaro facing a two-year drought and an expected six-month dry season in 2025, sustainability is a pressing issue.
AWS has stated that its AWS Mexico data center will be air-cooled and will not rely on cooling water for operations. Microsoft plans to use new technology to reduce water usage for cooling in its data center, and Google has committed to partnering with environmentally responsible suppliers to minimize consumption.
