- Rapid expansion of hyperscale facilities in Querétaro, Mexico, valued at over US $1 billion in 2024, poses new water-usage challenges.
- Operators are turning to closed-loop and liquid-cooling systems to mitigate environmental impact and support AI workloads effectively.
What happened: Querétaro emerges as a hyperscale data-centre hotspot
Mexico’s data-centre sector is surging ahead as the country becomes a preferred hub for digital infrastructure, especially for AI and cloud computing. The market was valued at US $1.06 billion in 2024 and is projected to grow to US $2.27 billion by 2030. Querétaro leads the pack with over half of the installed capacity, drawing in major names like Microsoft, AWS, Alibaba Cloud, Ascenty, and OData.
OData, for instance, recently inaugurated its fourth hyperscale facility in Querétaro—featuring closed-loop water cooling and liquid-cooling readiness for high-density AI, ML and HPC workloads. The site also created more than 1,500 jobs locally.
Yet, the region’s recurrent droughts raise concerns about water demand for cooling. Drawing on UK analogies, experts note that most data centres—particularly in the UK—do not rely on water for cooling, and only a small minority exceed substantial water consumption. In Mexico, adoption of water-efficient technologies like closed-loop systems and smart water-management tools is increasingly essential.
Also Read: OData opens fourth hyperscale data centre in Mexico
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Why it matters
The expansion of AI-ready digital infrastructure in water-stressed regions such as Querétaro highlights a critical junction between technological progress and environmental responsibility. Beyond bringing economic uplift, hyperscale centres risk amplifying existing resource strains—unless they pivot decisively toward sustainable cooling.
Global data underscores the gravity: AI-driven demand could require 4.2 to 6.6 billion cubic metres of water withdrawal by 2027—exceeding half the United Kingdom’s annual water use. With data centres in drought-vulnerable Latin American regions facing mounting criticism for opaque water use and community impact, the need for transparency and regulation is urgent.
Mexico’s approach—especially in Querétaro—could become a benchmark. Marrying closed-loop and liquid-cooling systems with AI infrastructure may present a replicable model for sustainable digital growth, one that protects scarce water resources while serving the demands of tomorrow’s technology.
