Mexico City, Mexico – Amazon Web Services (AWS), a United States-based subsidiary of e-commerce giant Amazon, on Monday announced a USD $5 billion investment to build a “state of the art” data center in Mexico.
The investment was announced during President Claudia Sheinbaum’s routine press conference, where an Amazon delegation accompanied top Mexican government officials to make the statement.
The Amazon team, led by AWS Vice President Paula Bellizia, announced the construction of a data center in Querétaro, central Mexico, a location chosen for logistical purposes and its infrastructure, given its closeness to the country’s capital and access to airports and highways.
The VP explained in the press conference that the multi-billion-dollar venture would result in two major benefits for Mexico, both economically and for future generations of Mexicans.
According to estimates by AWS, the investment could increase Mexico’s GDP by USD $10 billion over the next 15 years, in addition to generating 7,000 formal, full-time jobs annually, thanks to the adoption of artificial intelligence (AI).
“A recent study points out that the adoption of cloud-enabled artificial intelligence will contribute over 19 billion USD to the country’s economy by 2030. It is also estimated that productivity gains from AI will generate 900 USD per worker, also by 2030,” explained Bellizia.
Talking to Aztec Reports, serial entrepreneur and cloud architect, Gerardo Sandoval explained the pressing need for countries in Latin America such as Mexico to invest in Artificial Intelligence and technology.
“AI is growing at a compound annual rate of 20.5%, transforming the global economy and industries. However, in Latin America, data center development is not advancing at the same pace, which could limit our ability to take full advantage of its potential. It is crucial to invest now in infrastructure to avoid being left behind in this technological revolution,” he said.
Bellizia explained that Amazon is also focused on training the next generation of Mexican digital talent, a continuous effort since 2017 that has resulted in the training of over 500,000 Mexicans in cloud skills.
“Our vision for training Mexican talent focuses on collaborating with educational institutions in the country that have a truly national presence, thus reaching all corners of Mexico. In this regard, we have prioritized strategic partnerships with institutions such as Conalep and the National Technological Institute of Mexico System,” said Bellizia.
According to Bellizia, Amazon aims to train an additional 200,000 Mexicans by the end of next year, having recently completed the training of 138,000 Mexicans through the “Boosting Talent to the Cloud” program, which entails job opportunities for graduates.
Amazon’s investment adds to the over 277 billion dollars in investments announced by Sheinbaum as part of the “Plan Mexico,” a key initiative of her government aimed at exploiting Mexico’s resources and economy.
Within the guidelines of Plan Mexico, the goal is to reduce poverty and inequality while incentivizing the local economy. However, the strategy includes ambitious targets, such as moving Mexico’s economy from twelfth to tenth place globally and increasing the proportion of investment in GDP to 25%.
“We have arrived in Mexico to stay because this investment is much more than the construction of state-of-the-art data centers; it is a decisive and sustained commitment to the socioeconomic growth and digital future of this great country and all Mexicans,” she said.