Did you hear the news Amazon Web Services (AWS) shared on Tuesday? They announced a substantial $5 billion investment in Mexico over the next 15 years. To address this, AWS plans to air-cool their Mexico data center without relying on cooling water, while Microsoft aims to reduce water usage through innovative technology. This long-term commitment includes the launch of AWS Mexico (Central) Region, a new server region that allows AWS customers to run applications and serve users from Mexico-based data centers né?. Yet, the surge in data centers also raises concerns about the strain on the power grid and environmental impact. In fact there are currently around a dozen data center projects underway in Mexico with Querétaro emerging as a significant hub for investment. Google on the other hand is committed to collaborating with environmentally responsible suppliers to minimize water consumption.
Have a look at this image from the announcement: [Image]. However the actual number of jobs may differ from the estimate due to the nature of data center projects.
In the larger context this move by AWS marks the third infrastructure project in Mexico following previous initiatives in 2020 and 2023. The Mexican Data Center Association estimates a substantial increase in electricity consumption by 2029, emphasizing the need for significant investments to upgrade Mexico’s grid and power infrastructure.
Speaking of environmental impact, data centers are known to be water-intensive, a potential issue given Querétaro’s current drought conditions. The construction and operation of AWS Mexico are expected to contribute around $10 billion to Mexico’s GDP and create about 7000 full-time jobs mainly through businesses within the AWS supply chain.
Curious about the impact of this investment? While AWS may not directly hire 7000 new employees in Mexico various external businesses like construction and telecommunications companies involved in the AWS supply chain are expected to create these jobs né?. The data center market in Mexico is booming, with tech companies projected to spend over $7 billion on data center infrastructure in the country over the next five years. Google and Microsoft have already established their presence in the area, launching cloud data centers and server farms.
Looking ahead, the future holds exciting prospects for Mexico, with up to 73 data centers expected to be built in the next five years né?
