Sunday, July 21, 2024

Google announces first data center region in Mexico

Google will set up a data center region in Querétaro to serve its cloud computing business, state authorities announced Monday.

The California-based tech giant will join major companies such as Microsoft and Amazon Web Services in the Bajío region state. Its Google Cloud division is expected to begin operations in Querétaro in 2025.

Querétaro Governor Mauricio Kuri
Mauricio Kuri, the governor of Querétaro, announced the news on Monday at a press conference. (Mauricio Kuri/X)

Governor Mauricio Kuri met with Google executives on Monday morning and subsequently told a press conference that the company would set up its first data center region in Mexico in Querétaro.

A data center region is a cluster of data centers in close proximity to each other.

The Google Cloud data center region in Querétaro — which will become the company’s third such region in Latin America — will primarily serve Mexico, but will also have the capacity to offer services to other countries in the region, according to Sustainable Development Minister Marco Del Prete.

State authorities didn’t reveal the location of the planned data region or say how much Google planned to invest in it. Del Prete said that information would remain confidential for the time being due to what he called competitiveness reasons.

Querétaro Governor Mauricio Kuri, US Ambassador Ken Salazar, Microsoft Latin America President Tito Arciniega, Finance Secretary Rogelio Ramirez de la O and other officials at Microsoft inauguration event.
The opening of the Microsoft data center region in Querétaro in May was attended by U.S. Ambassador Ken Salazar (second from right) and Finance Minister Rogelio Ramírez de la O (center). (US Ambassador/X)

Without mentioning any monetary figure, Kuri said that Google’s outlay in Querétaro will be substantial.

“We should feel very proud … that these kinds of companies come to Querétaro — Amazon, Microsoft [and now] Google. Google is also coming with a very big investment for Querétaro,” the governor said.

He added that he and other officials would soon meet with the Google CEO, Sundar Pichai.

Del Prete said that Google’s decision to invest in Querétaro “confirms the vocation of the state as a data center valley.”

Sundar Pichai CEO of Google
Governor Kuri said he will be meeting with Sundar Pichai, the CEO of Google. (Shutterstock)

“… Data centers are business facilities that we depend on today. … All our data is concentrated in a data center,” he said.

Del Prete said that Querétaro is an attractive place to set up a data center due to the state’s “strategic location” in the center of the country.

“But we also have to mention … the security the state has, because it’s a place where investments are respected, where the investor is protected with the full range of legal protection,” he said.

“In addition, there is transport infrastructure and investment is being made in energy infrastructure. That’s what cloud [computing services] need to operate,” Del Prete said.

Microsoft opened its Hyperscale Cloud Data Center Region in Querétaro in May, four years after the company revealed its intention to invest US $1.1 billion to drive digital transformation in Mexico.

Amazon Web Services announced in February that it intended to invest more than US $5 billion in a cluster of data centers in Querétaro. The company already has a “local zone,” or computing hub, in the state.

Data center cooling towers
Querétaro’s development minister Del Prete said concerns about water usage for data centers are overblown. (Shutterstock)

“It’s now the three big [tech companies], as well as many others, that are setting up in Querétaro,” Del Prete said.

One of the other companies establishing data centers in Querétaro is United States IT company CloudHQ, which intends to invest $3.6 billion in the state.

Among the benefits the data centers will bring to Querétaro are employment, innovation and new technology, Del Prete said.

He downplayed water concerns, asserting that data centers’ use of water is not as excessive as some people believe. A data center’s water usage is comparable to that of an office building, Del Prete said.

The sustainable development minister anticipated that more than $10 billion in data center-related investment will flow into Querétaro over the next 10 years.

With reports from El Economista and Diario de Querétaro  


Have something to say? Paid Subscribers get all access to make & read comments.
Mexico City cityscape view at night with cloudy sky

A cloudy economic forecast? Mexico shows 0% monthly growth in June

Earlier this week, the International Monetary Fund slightly lowered its forecast for economic growth in both Mexico and the United States in 2024.
Pedro Casas Alatriste

5 questions about Mexico’s semiconductor industry: An interview with Pedro Casas

Pedro Casas of AmCham sees a clear alignment between the U.S. and Mexico that will transform the region's semiconductor supply chain.
Ministerial meeting of the Americas Partnership for Economic Prosperity, with member country representatives seated at banquet tables in a foermal room at the US White House.

New US initiative could ‘turbocharge’ Mexico’s semiconductor industry

The Western Hemisphere Semiconductor Initiative aims to turn Mexico and other Latin American nations into semiconductor assembly hubs.