Ebrard: More than US $8B in data center projects in the works

Economy Minister Marcelo Ebrard said Tuesday that companies have announced plans to invest more than US $8 billion in data center projects in Mexico. Speaking to reporters after an event in Mexico City, Ebrard said that the planned data center projects are proceeding as expected. Ebrard emphasized that data center companies are working with the Federal Electricity Commission (CFE) to ensure adequate power supply. (Estrella Josento/Cuartoscuro) Various companies have recently announced plans to build new data centers in Mexico. They include Mexican company KIO, which announced it would invest up to $1.3 billion to develop a new data center in Querétaro, and U.S. company Cloud HQ, which plans to invest an estimated $4.8 billion to build six data centers and complementary infrastructure on a single site in Querétaro. The latter project is currently under development. Querétaro is Mexico’s main data center hub, but it’s not the only state attracting investment in the booming sector. The Guanajuato government said in September that the state had attracted $630 million in data center investment, while in New York earlier this month, Nuevo León Governor Samuel García said he had secured US $600 million in investment to develop industrial facilities, primarily data centers, in his state. On Tuesday, Ebrard said that investment in data centers in Mexico will allow the country to strengthen its technological capabilities and its participation in the development of artificial intelligence. “What we’re experiencing is an epochal shift and data centers are a significant part of that,” he said, referring to the rise of AI. Ebrard acknowledged that the operation of data centers requires additional electricity infrastructure. He said that data center companies are working with the Federal Electricity Commission to ensure adequate power supply. Ebrard said that private investment in electricity projects related to data centers could reach around $400 million. The economy minister also said that data center cooling systems use less water than they used to. He indicated that Mexican authorities are open to more data center investment in the country. “I think we’re going to continue encouraging their installation and operation in our country,” Ebrard said. For her part, President Claudia Sheinbaum said in August that Mexico needs data centers “to advance in artificial intelligence.” But, she added, “Mexico does not necessarily have to be the data center [hub] for other parts of the world, because [their operation] requires high energy and water consumption.” What is President Sheinbaum’s view on Mexico becoming a data center hub? According to an Energy Ministry (SENER) report published in August, there were 170 data centers in operation in Mexico in 2023 and 200 in 2025. That number is projected to rise to 230 in 2027 and 243 in 2029. “The sustained growth of this infrastructure is driven by the increase in data traffic, industrial digitization, and the expansion of cloud services,” SENER said in its report, titled “Energy Efficiency in Data Centers: Challenges, Trends and Opportunities.” “Querétaro has established itself as the country’s leading hub, thanks to its geographic location, energy availability, and fiber-optic connectivity,” the ministry said. “This development has spurred the creation of specialized technology parks and attracted foreign direct investment, primarily from U.S., European, and Asian companies. However, it has also created new challenges in terms of electricity capacity, water supply, and sustainable energy management, underscoring the need to incorporate energy efficiency into the planning and design of these facilities,” SENER said. With reports from Milenio and Vanguardia Industrial