What is President Sheinbaum’s view on Mexico becoming a data center hub?

As data centers proliferate in Mexico, President Sheinbaum has taken a nuanced stand that recognizes the need for the centers but is skeptical about the country becoming a hub for them. During her Tuesday morning press conference, Sheinbaum said she believes Mexico needs data centers to develop artificial intelligence (AI) but opposes becoming a “global data center” to meet external demand. President Sheinbaum is seen during her mañanera press conference Tuesday, when she outlined her view on the burgeoning presence of data centers in Mexico, which is essentially: Data centers, Sí! Global data center hub, No! (Galo Cañas / Cuartsocuro.com) “We do need to have data centers to advance in artificial intelligence, but Mexico does not necessarily have to be the data center for other parts of the world, because it requires high energy and water consumption,” Sheinbaum said. In Querétaro — which continues to lead AI expansion in Mexico — the debate has intensified precisely due to the potential pressure on strategic resources. When asked about alleged power outages that had stalled data center investments in Querétaro, Sheinbaum cited reports from the Federal Electricity Commission (CFE) showing such complaints have decreased. She also noted that investment is needed primarily in transmission and distribution, rather than in generation. New data center facilities continue to arrive in the state, as well as in other parts of the country. Indeed, according to market research firm Arizton, by January of this year, Mexico hosted some 47 data centers, mainly located in Querétaro, Mexico City and Guanajuato, with 12 more in the pipeline. Just last week, KIO Data Centers announced it would invest up to US $1.3 billion to develop a new data center in Querétaro with the objective of meeting regional demand for cloud and AI infrastructure. Although Sheinbaum acknowledged that data centers play an important role in the country’s modernization, their contribution to employment is low and their environmental impact is high. “[Data centers] do generate economic growth, but with very little job creation and high consumption of natural resources,” Sheinbaum said, adding that her government is also prioritizing other sectors, such as manufacturing, which generate more jobs and place less pressure on natural resources. Sheinbaum stressed that Mexico should develop the data centers it needs for AI through careful planning that considers the country’s technology needs, electricity infrastructure, natural resource constraints and job creation, rather than be driven by global demand. With reports from La Jornada and Infobae