KIO Data Centers doubles down on Querétaro with a US $1.3B expansion plan

The Mexican data center company KIO will pour more than a billion dollars into Querétaro by 2030 as part of an expansion to meet growing U.S. demand for artificial intelligence and data storage.

KIO will spend up to US $1.3 billion to develop the QR03 project, a new data center in the El Marqués Industrial Park in Querétaro city’s eastern outskirts. The latest expansion is expected to create more than 8,000 jobs, direct and indirect. 

The move has reinforced the central state’s position as one of Mexico’s leading digital infrastructure hubs. Almost three quarters of all Mexican data centers are in Querétaro.

KIO Data Centers CEO Octavio Camarena Villalvazo announced the decision during an event led by Querétaro Governor Mauricio Kuri González and Mexico’s Economy Minister Marcelo Ebrard Casaubón.

Camarena told the gathering that the new infrastructure is part of the company’s growth strategy in a market where data centers are playing a central role in the digital economy. 

“Without world-class data centers, there is no cloud, no smart manufacturing, no digitized data, and no artificial intelligence,” Camarena said. 

The company’s growth plan has already made some progress with the recent completion of phases two and three of QRO2—the company’s second facility in the state—with a cumulative spend of US $170 million. It has also run its first data center, QRO1, for nearly two decades.

At the same time, KIO plans to invest over US $200 million in 2026 for projects and expansions across Mexico City, Monterrey, Querétaro, and Guatemala, with the objective of meeting regional demand for cloud and artificial intelligence infrastructure — two segments that have driven up requirements for power capacity and data processing.

Camarena estimated that the company’s project could generate an economic impact of billions of dollars in Mexico due to additional investments. Companies such as AWS, Microsoft, Google Cloud, Equinix, ODATA, CloudHQ, Ascenty, and Huawei have operations, projects, or infrastructure in the state.

 A recent projection by the Mexican Association of Data Centers forecast that, by 2031,  around  US $20 billion would be directly spent on data centers in the country. In addition, it forecast a further US $64 billion in indirect investment, with much of that spent in Querétaro. 

With reports from Cluster Industrial, Mexico Industry and El Economista

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