Introduction
Amazon Web Services (AWS), Amazon’s cloud computing powerhouse, has announced a strategic plan to invest $5 billion in Mexico over the next 15 years. This significant investment underscores AWS’s commitment to expanding its cloud infrastructure in Latin America.
The launch of the AWS Mexico (Central) Region marks the company’s third major infrastructure initiative in Mexico, following smaller projects completed in 2020 and 2023.
Key Highlights:
- $5 Billion Investment: AWS will invest $5 billion in Mexico over 15 years.
- New Data Center Region: AWS Mexico (Central) Region is officially launched.
- Economic Boost: AWS expects the project to contribute $10 billion to Mexico’s GDP.
- Job Creation: Around 7,000 jobs are anticipated in the AWS supply chain.
- Energy Demand Concerns: Experts predict new data centers will significantly increase power consumption.
AWS Mexico (Central) Region Launch
AWS officially launched its new server region, AWS Mexico (Central), on January 14, 2025. This new region allows businesses and developers to run applications and serve end users directly from data centers within Mexico.
AWS’s decision to establish a regional hub in Mexico reflects the country’s growing demand for cloud services and digital infrastructure.
The data center is located in Querétaro, a city rapidly becoming a hub for tech investment. Major players like Google and Microsoft have also established cloud facilities in the area.
In December 2024, Google inaugurated its cloud data center in Querétaro, and Microsoft followed suit with a server farm launched in May 2024.
Economic Impact and Job Creation
AWS estimates that the construction and operation of its Mexico-based data center will add approximately $10 billion to the country’s GDP.
The project is expected to create around 7,000 jobs within the AWS supply chain, including roles in construction, telecommunications, and maintenance.
However, AWS clarified that it will not directly hire 7,000 employees. Instead, external businesses involved in the AWS supply chain will generate these job opportunities.
While optimistic, job creation estimates in data center projects often face scrutiny. Critics point out that actual job numbers frequently fall short of projections.
Mexico’s Data Center Market on the Rise
Mexico’s data center market is experiencing rapid growth. Industry reports indicate that tech companies plan to invest over $7 billion in data center infrastructure over the next five years.
With about a dozen major projects underway, experts predict the construction of 73 new data centers by 2030.
Querétaro has emerged as the focal point of this investment surge due to its strategic location, skilled workforce, and favorable business environment. The city’s growing importance as a tech hub has drawn global attention from leading cloud providers.
Energy and Environmental Concerns
The rapid expansion of data centers in Mexico raises concerns about energy consumption and environmental impact. According to the Mexican Data Center Association (MDCA), the planned data centers could consume up to 1,492 megawatt-hours (MWh) of electricity by 2029. This amount is equivalent to powering approximately 150,000 homes.
To meet the increased energy demand, MDCA estimates that Mexico will need to invest at least $8.73 billion in upgrading its power grid and energy supply infrastructure. Without these upgrades, the country may struggle to sustain the booming data center industry.
Water usage is another critical issue. Data centers require significant amounts of water to cool components and maintain safe humidity levels.
Querétaro has been facing drought conditions for the past two years, and the dry season in 2025 is expected to last at least six months. To address these concerns, AWS announced that its data center would use air-cooling technology, eliminating the need for continuous water usage.
Microsoft and Google have also pledged to adopt environmentally friendly technologies in their respective data centers. Microsoft plans to use innovative cooling solutions that reduce water consumption, while Google aims to collaborate with sustainable suppliers to minimize its environmental footprint.
AWS’s Growing Presence in Mexico
AWS first entered the Mexican market in 2020 with small-scale infrastructure projects designed to support local businesses. In 2023, the company expanded its footprint with additional investments, paving the way for today’s large-scale launch.
AWS’s expansion in Mexico aligns with a broader trend of tech companies investing in Latin America. The region offers significant growth potential due to its expanding digital economy, increasing internet penetration, and rising demand for cloud services.
Industry Outlook
Experts predict that Mexico’s data center market will continue to grow rapidly in the coming years. Factors driving this growth include:
- Increased Cloud Adoption: More businesses are migrating to the cloud to enhance efficiency and reduce costs.
- Government Support: Mexico’s government has introduced policies to attract foreign investment in tech infrastructure.
- Strategic Location: Mexico’s proximity to the U.S. makes it an attractive location for North American companies seeking to expand their cloud services.
- Rising Digital Economy: E-commerce, fintech, and digital services are booming in Mexico, driving demand for reliable cloud infrastructure.
Conclusion
AWS’s $5 billion investment in Mexico represents a significant milestone in the country’s digital transformation journey. The launch of the AWS Mexico (Central) Region not only strengthens Mexico’s position as a tech hub but also underscores the growing importance of cloud computing in the region.
While challenges remain—including energy demands and environmental concerns—AWS and other tech giants appear committed to sustainable growth. With continued investment and innovation, Mexico’s data center market is poised for a promising future.
