Amazon Web Services (AWS), Amazon's cloud computing arm, said in an announcement Tuesday that it plans to invest $5 billion in Mexico over the next 15 years as part of its “long-term commitment” to the region. Ta.
Part of that investment is a new server region launching today, the AWS Mexico (Central) Region. This will enable AWS customers to run applications and serve end users from AWS datacenters in Mexico. AWS estimates that the construction and continued operations of AWS Mexico will add approximately $10 billion to Mexico's GDP and support approximately 7,000 “full-time equivalent jobs.”
To be clear, AWS has no plans to hire any of the 7,000 or so new employees based in Mexico. Rather, the company expects these jobs will be created by “external companies” within the “Mexican AWS supply chain,” such as construction companies and telecommunications companies.
That may prove to be an optimistic estimate. Data center projects often hire less than they promise.
The AWS Mexico Server Region, which AWS first announced last February, is the company's third infrastructure project in the country, after smaller efforts in 2020 and 2023.
Mexico's data center market is booming. Tech companies are expected to spend more than $7 billion on data center infrastructure in the country over the next five years, with about a dozen projects currently underway, one source said.
The city of Queretaro, where AWS Mexico is located, is an investment hub. Google launched a cloud data center in Queretaro in December, while Microsoft established a server farm in the city last May.
As many as 73 data centers are expected to be built in Mexico over the next five years, an amount that experts say will have a serious impact on the country's power grid. New equipment could consume up to 1,492 MWh of electricity by 2029, enough to power about 150,000 homes, according to the Mexican Data Center Association (MDCA), an industry group. It is quantity.
To meet energy needs, MDCA estimates that the Mexican government and companies will need to invest at least $8.73 billion to improve Mexico's power grid and power supply.
Environmentalists have also expressed concern about the long-term impact of data centers. Data centers typically consume large amounts of water. Water is needed not only to cool components such as chips, but also to maintain safe operating humidity levels. Querétaro has been suffering from drought for two years, and Mexico's 2025 dry season is expected to last at least six months.
AWS said the AWS Mexico data center is air-cooled and “does not require continuous use of cooling water during operations.” Microsoft said its data centers in the region would introduce new technology to reduce water usage for cooling, and Google said it would partner with “environmentally responsible” sources to reduce consumption. promised.