Amazon Web Services (AWS), the cloud computing division of Amazon, has announced a significant investment of $5 billion in Mexico over the next 15 years, marking a long-term commitment to the region. As part of this investment, AWS has launched a new server region in Mexico, dubbed AWS Mexico, which will enable customers to run applications and serve users from data centers located within the country.

The launch of AWS Mexico is expected to have a substantial impact on the Mexican economy, with AWS estimating that the construction and ongoing operation of the region will add approximately $10 billion to the country's GDP and support around 7,000 full-time equivalent jobs. According to Prasad Kalyanaraman, AWS VP of infrastructure services, this new region will provide businesses in Mexico with access to secure and reliable infrastructure, as well as a broad set of AWS technologies, enabling them to drive innovation in machine learning, AI, and other advanced technologies.

The data center market in Mexico is booming, with tech companies expected to spend over $7 billion on data center infrastructure in the country over the next five years. The city of Querétaro has emerged as a hub for data center investments, with Google launching a cloud data center in the city in December and Microsoft spinning up a server farm last May. In fact, as many as 73 data centers are expected to be constructed in Mexico over the next five years, which experts warn will have a significant impact on the country's power grid.

According to the Mexican Data Center Association (MDCA), the new infrastructure could consume as much as 1,492MWh of power by 2029, equivalent to powering around 150,000 homes. To meet this electricity demand, the MDCA estimates that the Mexican government and companies will need to invest at least $8.73 billion to upgrade Mexico's grid and power suppliers. This raises concerns about the environmental impact of these data centers, particularly in regions like Querétaro, which has been suffering from drought for two years.

Environmental advocates have expressed concerns about the long-term effects of these data centers, which typically require large amounts of water for cooling components and maintaining a safe operating humidity. However, AWS has stated that its AWS Mexico data center will be air-cooled and will not require the ongoing use of cooling water in operations. Microsoft has also pledged to reduce its water usage for cooling through the use of new technology, while Google has committed to partnering with environmentally responsible suppliers to minimize its environmental footprint.

The launch of AWS Mexico and the broader data center boom in the country highlight the importance of balancing economic growth with environmental sustainability. As the demand for cloud computing and data storage continues to grow, it is crucial that companies and governments work together to develop innovative solutions that minimize the environmental impact of these technologies.