AWS’s Bold $5 Billion Investment in Mexico: A Game Changer for the Region
Amazon Web Services (AWS), the cloud computing giant, recently announced a strategic move that is set to transform Mexico’s tech landscape. AWS plans to invest a whopping $5 billion in the country over the next 15 years as part of its long-term commitment to the region. This investment includes launching a new server region, AWS Mexico, which is operational as of today. This development will allow AWS customers to efficiently run applications and serve users directly from data centers located within Mexico.
Economic Impact and Job Creation
The economic implications of this venture are significant. AWS estimates that the construction and ongoing operation of AWS Mexico will contribute around $10 billion to Mexico’s GDP. Additionally, it is expected to create approximately 7,000 full-time equivalent jobs, providing a substantial boost to the local economy.
“This launch marks a significant step as we continue to expand our infrastructure and deliver global innovation in machine learning, AI, and other advanced technologies for our customers,” stated Prasad Kalyanaraman, AWS VP of infrastructure services.
Prasad Kalyanaraman
Mexico: A Growing Hub for Data Centers
The data center market in Mexico is experiencing remarkable growth. According to industry analysis, tech companies are projected to invest over $7 billion in data center infrastructure within the coming five years. Currently, more than a dozen projects are already underway.
The city of Querétaro has emerged as a focal point for these investments. AWS Mexico is situated here, joining other major players like Google and Microsoft, which have recently established their cloud data centers in the city.
- Google launched its cloud data center in Querétaro in December.
- Microsoft set up a server farm in May last year.
The Challenge of Power Consumption
While the expansion of data centers is promising for technological advancement, it poses challenges for Mexico’s power grid. The Mexican Data Center Association (MDCA) anticipates that the new infrastructure could consume up to 1,492 MWh of power by 2029 — enough electricity to power approximately 150,000 homes.
The MDCA estimates that an investment of at least $8.73 billion will be necessary from both the government and private companies to upgrade Mexico’s grid and power suppliers adequately.
Addressing Environmental Concerns
Environmentalists have raised alarms regarding the long-term impact of these data centers. Typically water-intensive due to their cooling requirements, data centers can exacerbate water scarcity issues. Notably, Querétaro has been experiencing drought conditions for two years, with predictions indicating that Mexico’s 2025 dry season may last at least six months.
AWS has responded by ensuring that their AWS Mexico data center will be air-cooled, eliminating the need for continuous water use in operations. Similarly, Microsoft has committed to utilizing innovative technologies to minimize water consumption for cooling purposes, and Google has pledged partnerships with environmentally responsible suppliers.
