Amazon Web Services Prepares New Data Region in Mexico for 2025
Amazon Web Services (AWS) is finalizing tests for its new data region in central Mexico, set to begin operations in 2025. This $5 billion investment aims to serve the entire continent, transforming Mexico into a continental technology hub.
A Major Investment for Continental Impact
Amazon Web Services (AWS), Amazon’s cloud services arm, is on the verge of launching a new data region in central Mexico. According to Rubén Mugártegui, the general manager of AWS in Mexico, the facility is set to commence operations at the beginning of 2025. This $5 billion investment in Querétaro aims to serve clients across the Americas, making Mexico a key player in the region’s technological landscape.
“This $5 billion investment is 100% constructed. We are practically conducting the final tests to launch our services at the beginning of 2025,” said Mugártegui at the AWS Summit 2024 in Mexico City. He expressed confidence that this new data region would turn Mexico into a continental technology hub.
The project, announced in February, will support over 240 cloud services offered by AWS to clients worldwide. The complex, known as a ‘Region,’ will include three availability zones, each with one or more data centers, and will integrate AWS’s ‘Local Zone’ to reduce service latency and offer robust database services.
Sustainable Innovation and Environmental Considerations
Mugártegui emphasized AWS’s commitment to sustainable development, highlighting that the technological infrastructure in Querétaro is fully electrified. One of the most notable innovations is the air-based cooling system, which significantly reduces water consumption compared to traditional methods.
“We conducted an in-depth analysis in Querétaro before building the data centers to understand the local and regional water conditions,” Mugártegui explained. This analysis led to developing a cutting-edge cooling system that does not rely on water, addressing community concerns about resource use. The data region will use only five average-sized homes’ equivalent water consumption annually, ensuring minimal environmental impact.
This innovative approach reflects AWS’s long-term sustainable commitment and ability to adapt its technologies to local environmental contexts, minimizing its ecological footprint while maintaining high operational efficiency.
Data Sovereignty and Economic Growth
Mugártegui also underscored the importance of data residency for AWS clients, including the Mexican government, state governments, and state-owned entities. The new data region will ensure data is stored within Mexico’s borders, enhancing security and reducing latency, improving cloud service response times.
“Having data within the borders is crucial from a security standpoint and latency,” Mugártegui explained. Many private companies are advised to keep their data stored within national borders to meet regulatory requirements and ensure optimal performance.
AWS Mexico bases 90% of its decisions on customer feedback, which indicates a potential expansion of services in the country. Mugártegui mentioned Mexico’s favorable economic outlook and the increasing demand for cloud services and applications due to the nearshoring trend.
According to a study by IDC Mexico, over $1.7 trillion will be invested in information technologies for nearshoring between 2025 and 2028, with artificial intelligence being a significant focus. In Mexico alone, this investment is projected to increase by 19% in 2024 and 11% in 2025, with 47% dedicated to developing applications with artificial intelligence.
Looking Ahead: AWS’s Vision for Mexico and Beyond
As AWS prepares to launch its new data region in Mexico, the broader implications for the continent’s technological and economic landscape are significant. The investment reinforces Mexico’s strategic position in the global tech industry and promises to drive substantial economic growth and technological advancement across Latin America.
The Querétaro facility is designed to meet the growing demand for cloud services, fueled by trends such as digital transformation and the increasing adoption of artificial intelligence. By providing robust, secure, and low-latency cloud services, AWS aims to empower businesses, governments, and other organizations to innovate and operate more efficiently.
Furthermore, AWS’s data region in Mexico is expected to attract more foreign investment and encourage local businesses to expand their digital capabilities. The resulting boost in economic activity could create new jobs and foster a more dynamic tech ecosystem in the region.
AWS’s commitment to sustainability also sets a benchmark for other tech companies. By adopting environmentally friendly practices and technologies, AWS is demonstrating that it is possible to achieve high operational performance while minimizing environmental impact.
Conclusion: A New Era for Cloud Services in Latin America
The upcoming launch of AWS’s data region in Mexico marks the beginning of a new era for cloud services in Latin America. With a substantial investment in infrastructure, cutting-edge technology, and a solid commitment to sustainability, AWS is poised to transform Mexico into a central hub for technological innovation and economic growth.
As the data region becomes operational, businesses and governments across the continent will benefit from enhanced cloud services, improved data security, and reduced latency. This development supports AWS’s global expansion strategy and underscores the pivotal role that Mexico will play in the future of cloud computing.
Also read: Mexico Rises in Global Automotive Exports Boosted by Strong Industry
AWS’s new data region in Querétaro represents a significant milestone in the company’s efforts to provide top-tier cloud services while fostering economic development and environmental sustainability. As we look to the future, the impact of this investment will be felt across the Americas, driving progress and innovation for years to come.
