AWS Announces $5B Investment in Mexico, Launches New Cloud Region
Amazon Web Services (AWS) has unveiled plans to invest $5 billion in Mexico over the next 15 years, reinforcing its long-term commitment to the region. The cornerstone of this initiative is the newly launched AWS Mexico (Central) Region, enabling businesses to deploy applications from local data centers for improved latency and performance.
Economic Impact and Job Creation
- GDP Contribution: AWS projects the new infrastructure will add $10 billion to Mexico’s GDP.
- Employment: Approximately 7,000 full-time equivalent jobs are expected, primarily through indirect opportunities in construction, telecom, and supply chain sectors.
- Note: AWS clarifies these roles will be created by third-party vendors, not direct hires.
Mexico’s Data Center Expansion
Mexico’s data center market is experiencing rapid growth:
- Projected Spending: Over $7 billion in infrastructure investments by 2030.
- Querétaro as a Hub: The city hosts AWS’s new region alongside recent facilities from Google (December 2024) and Microsoft (May 2024).
- Future Growth: Up to 73 new data centers could be built nationwide in the next five years.
Energy and Environmental Challenges
- Power Demand: The Mexican Data Center Association (MDCA) estimates new facilities may consume 1,492MWh annually by 2029—equivalent to powering 150,000 homes.
- Infrastructure Needs: $8.73 billion in grid upgrades may be required to support this demand.
- Water Concerns:
- Querétaro faces a prolonged drought, with 2025’s dry season expected to last six months.
- AWS emphasizes its Mexico facility will use air-cooling technology, eliminating water dependency for operations.
- Compe*****s like Microsoft and Google are also adopting water-efficient solutions.
Strategic Context
This marks AWS’s third infrastructure project in Mexico, following smaller-scale deployments in 2020 and 2023. The move aligns with broader industry trends, as global tech giants expand their Latin American footprints to meet rising cloud demand.
Sources: BusinessWire, Reuters, MDCA
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