AWS Announces $5B Investment in Mexico, Unveils New Server Region

In a recent announcement, Amazon Web Services (AWS) unveiled plans to invest a staggering $5 billion in Mexico over the next 15 years, a significant marker of the company’s expanding commitment in the region. This investment will be channeled towards launching a new server location, AWS Mexico (Central) Region, thereby facilitating the running of applications and services for AWS customers from Mexico-based data centers.

Through this strategic move, AWS forecasts a potential addition of roughly $10 billion to Mexico’s GDP and indirectly supports about 7,000 full-time equivalent jobs in the region. An optimistic prediction, these jobs will be woven through “external businesses” such as construction and telecommunications firms that form part of the AWS Mexico-based supply chain.

Prasad Kalyanaraman, AWS VP of infrastructure services, hailed this development as a milestone in AWS’s global expansion. According to him, businesses in Mexico will now stand at the forefront of AI and machine learning innovation due to the reliable infrastructure and comprehensive AWS technologies provided by the new AWS region.

With a strengthening data center market, Mexico is becoming an attractive venture for tech giants with over $7 billion expected to be spent on data center infrastructure in the country in the next half-decade. The new AWS region joins the ranks of Google and Microsoft, who have their own data centers in Querétaro, the investment hotspot of Mexico.

However, this burgeoning growth comes with its own set of challenges. Environmental advocates have voiced concerns about the long-term aspects, especially the water usage by data centers. To address this, AWS asserted that its Mexican data center would use air-cooling, eliminating the need for constant cooling water.

In conclusion, the AWS announcement symbolizes a leap towards a tech-driven future for Mexico and an eco-conscious endeavor for AWS.

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