Amazon Web Services (AWS) will invest more than $5 billion in a cluster of data centers in Queretaro, the company announced Monday.
The investment is one of the largest recently announced in Mexico and will be made over 15 years, but the cloud computing subsidiary of US-based e-commerce giant Amazon We are planning to launch an infrastructure region. ” in the Bajío Regional State in early 2025, according to a press release.
“The new AWS Mexico (Central) Region provides developers, startups, entrepreneurs, and enterprises, as well as governments, educational institutions, and non-profit organizations with the ability to run applications and serve end users from data centers located in Mexico. “Customers who want to store their content in Mexico can do so,” AWS said.
“As part of our long-term commitment to Latin America, AWS plans to invest more than $5 billion (approximately P85 billion) in Mexico over 15 years. This is the latest in AWS’ ongoing investments in Mexico to provide the technology.”
Rubén Mugartegui, head of AWS in Mexico, also announced the investment at a press conference on Monday. He said in an interview with Reuters that the company has been working on the project for more than five years.
“Cloud computing allows businesses to access technology services such as storage and databases over the Internet, eliminating the need to own and maintain physical data centers and servers,” the news agency reported.
Citing research, Mugártegui told Reuters that companies can reduce technology costs by about 20% using AWS.
Mexican companies already using the company’s services include Aeromexico, Banco Santander México, BBVA and Cinépolis. Another of his clients is the state government of Michoacán.
In a press conference announcement on Monday, Economy Minister Raquel Buenrostro said the federal government is collaborating with AWS on a planned project in Querétaro. In an interview with Reuters, Mugartegui declined to say whether the company was offered any tax incentives when it was set up in Mexico.
The federal government announced tax incentives at the end of 2023 aimed at encouraging foreign investment in Mexico, but they were not targeted at companies operating data centers.
Buenrostro acknowledged that “cloud services are an essential part of everyday life” and said cloud services “are contributing to Mexico’s digital and economic transformation.”
“We welcome AWS’s investment and expansion in Mexico, as it is a sign of confidence and that conditions are right to support nearshoring trends across many sectors of our economy. We also welcome AWS’s investment in training students, MSMEs, and digital entrepreneurs at scale in 2020,” she added.
“The expansion of AWS’s infrastructure in Queretaro is a testament to the state’s commitment to advanced technology and innovation, and the work we have done to create an environment in which technology companies can grow,” said Mauricio Curri, Governor of Queretaro. ”.
Mugártegui said foreign companies relocating to Mexico are also among potential customers for AWS.
The company’s press release states that it offers “the broadest and deepest portfolio of services, including analytics, artificial intelligence, computing, databases, Internet of Things (IoT), machine learning, mobile services, storage and other cloud technologies. ” is emphasized.
“As part of our continued efforts to contribute to the development of digital skills, AWS plans to hire and develop additional local talent to operate and support new AWS Regions in Mexico,” it added.
Amazon’s subsidiary already has seven “cloud front “Edge” locations in Mexico and “AWS Local Zone” in Queretaro. Amazon, owned by New Mexico billionaire Jeff Bezos, has invested more than $3 billion in Mexico since entering the country in 2015, according to Reuters.
As reported by Reuters, El Financiero and La Jornada
