Mexico's President Claudia Sheinbaum was during the announcement of Amazon's investment (Photo File by Julio Cesar AGUILAR / AFP).
Mexico's President Claudia Sheinbaum was during the announcement of Amazon's investment (Photo File by Julio Cesar AGUILAR / AFP).

Will Mexico become Latin America's new technology hub?

Querétaro has already managed to attract two technology giants: Amazon and Google. What is happening?

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Amazon, through its Amazon Web Services (AWS) division, has announced an investment of over $5 billion to build a data center in Mexico. This project will be developed in the state of Querétaro and aims to strengthen the company's technological presence in Latin America while promoting the growth of the region's digital ecosystem.

AWS Director for Latin America, Paula Bellizia, mentioned that this investment will lead to the creation of a new "digital region" that positions Mexico as a strategic hub in the technological landscape of the Americas. Bellizia emphasized that this cloud computing infrastructure will be essential for enhancing the region's capacity for data storage, processing, and distribution.

The announcement coincides with the presentation of Plan Mexico, an economic strategy promoted by President Claudia Sheinbaum. This plan aims to reduce reliance on Chinese imports by encouraging domestic production. During the press conference, Sheinbaum emphasized that investments like those from Amazon demonstrate Mexico's potential as a country with opportunities for sustained growth in key sectors.

Marcelo Ebrard, Secretary of the Economy, stated that the project will create approximately 7,000 skilled full-time jobs and is anticipated to contribute over US$10 billion to Mexico's Gross Domestic Product in the next 15 years.

Querétaro, selected to host this infrastructure, has established itself as a key industrial and logistics hub in Mexico. In recent years, the state has attracted global technology companies, including Google, which recently opened its third "cloud region" in Latin America in that location.

Ebrard stressed that the expansion of the technology sector in Mexico is a sign of the country's economic dynamism. In addition to Amazon, companies such as Foxconn have announced projects in the territory, such as constructing a plant to manufacture "superchips" used in artificial intelligence servers.

Technology competition in Latin America

Amazon's data center is part of a growing trend of technology companies looking to expand their operations in Latin America. In this region, demand for cloud computing solutions has increased significantly, driven by growth in e-commerce, telecommunications and the financial sector.

Google and Microsoft have led similar investments in countries such as Chile and Brazil, reflecting the competition for dominance of the digital services market in the region. Amazon's entry into Querétaro reaffirms Mexico as an attractive destination for these initiatives, thanks to its strategic geographic location and connection to global markets.

The growth of data centers poses significant challenges, particularly in the environmental area. These facilities require intensive energy consumption to operate their systems and cool them, which can put pressure on local power grids.

In Mexico, this challenge is especially relevant due to the limited capacity of the national electricity infrastructure and the risks associated with droughts in regions affected by climate change. Environmental organizations have expressed concerns about the impact that projects of this magnitude could have on water resources, a problem that has already been reported in neighboring countries such as Brazil and Chile.

To mitigate these risks, the Mexican government has indicated that it will promote investments in the energy and water management sectors as part of Plan Mexico. However, no specific measures have been detailed to ensure that the new technological infrastructure will be sustainable in the long term.

Amazon's announcement comes against a backdrop of changing economic dynamics in North America. Donald Trump's recent arrival to the U.S. presidency and his protectionist tariff policies have prompted Mexico to diversify its trade and industrial alliances.

Amazon's investment is interpreted as a sign of confidence in the country, even amid geopolitical and trade tensions. This decision could influence other international companies to consider Mexico as a viable destination for technology and advanced manufacturing projects.

The construction of Amazon's data center in Querétaro represents a significant economic opportunity for Mexico, both in terms of employment and technological modernization. However, the success of the project will depend on the country's ability to address the energy and environmental challenges associated with this kind of infrastructure.

The development of the technology sector in Mexico could be consolidated as an engine of economic growth in the coming years, provided that investments are accompanied by policies that guarantee sustainability and long-term benefits for local communities.

 

With information from AFP

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