- Amazon Web Services (AWS) plans to invest over $5 billion in Mexico to establish a cluster of data centres, responding to the increasing demand for cloud services.
- The investment, spread over 15 years, aims to cater to the growing number of companies adopting new technologies in the region.
- This move follows Amazon’s ongoing investments in Mexico since 2015 and aligns with the nearshoring trend, where businesses relocate operations closer to the United States amid supply chain disruptions caused by the COVID-19 pandemic.
According to reports, Amazon’s subsidiary, Amazon Web Services Mexico (AWS), announced on Monday that it will invest over $5 billion in Mexico to establish a cluster of data centres due to the growing demand for cloud services, as more companies adopt new technologies.
Also read: Amazon plans two AWS data centres for $10 billion in Mississippi
The investment will be spread out over the next 15 years
Ruben Mugartegui, head of Amazon Web Services Mexico, stated in a media interview that the cluster will be located in the state of Queretaro, Mexico, and added that the investment will be spread out over the next 15 years. He mentioned that the company has already dedicated over five years to this project.
Currently, AWS serves clients in Mexico such as Cinepolis, the stock exchange BIVA, Aeromexico, and local governments. Cloud computing helps businesses access technology services like storage and databases over the internet, eliminating the need for physical data centres and servers. Mugartegui cited a study claiming that companies can reduce technology costs by about 20% when using AWS.
It comes amid the so-called nearshoring trend
Since entering Mexico in 2015, Amazon has invested over 52 billion pesos ($3.04 billion USD) in the country. This new investment comes amid the so-called nearshoring trend, where businesses relocate operations from Asia to regions closer to the United States following supply chain disruptions caused by the COVID-19 pandemic.
