Amazon Web Services to Invest $5 bn in Data Centers in Mexico

Amazon Web Services Mexico (AWS), a subsidiary of Amazon.com, has unveiled plans to inject over $5 billion in Mexico in 15 years for setting up data centers.
AWS reInvent 2023 eventThis significant investment comes as a response to the escalating demand for cloud services, fueled by the accelerating adoption of innovative technologies across various industries.

Ruben Mugartegui, head of Amazon Web Services Mexico, disclosed in an exclusive interview with Reuters on Monday that the cluster will be strategically located in the state of Queretaro. He further elaborated that the substantial financial commitment will be dispersed over the course of the next 15 years.

The clientele of AWS in Mexico already boasts prominent names such as Cinepolis, BIVA, Aeromexico, and various governmental bodies. The allure of cloud computing lies in its ability to provide seamless access to a spectrum of technological services, including storage and databases, via the internet. Mugartegui underscored the cost-efficiency of utilizing AWS, citing a study that suggests companies could slash technology expenses by approximately 20 percent.

Since its foray into the Mexican market in 2015, Amazon has infused more than 52 billion pesos ($3.04 billion) into the country.

This announcement aligns with AWS’s expansion plans, with the unveiling of three Availability Zones in the new AWS Region. Additionally, AWS has outlined intentions to launch 15 more Availability Zones and five additional AWS Regions across various global locales, including Malaysia, New Zealand, and Thailand.

Enterprises in Mexico have used the AWS platform to accelerate their digital transformation journey. Prominent names such as Aeromexico, Banco Santander Mexico, BBVA, Cinepolis, Kavak, Palace Resorts, and Vector Casa de Bolsa have integrated AWS into their operations to achieve agility, scalability, and cost-efficiency.

Aeromexico, Mexico’s premier airline, lauded AWS for its role in enhancing operational efficiency and delivering exceptional customer experiences. Fernando Rocha, Chief Information Officer at Aeromexico, emphasized the significance of AWS in enabling the airline to prioritize technological modernization and innovate rapidly.

Banco Santander Mexico, a leading financial institution serving millions of customers, underscored the strategic importance of AWS in driving its digital transformation efforts. Juan Pablo Chiappari, head of IT infrastructure for North America at Banco Santander, highlighted AWS’s comprehensive suite of services in fostering innovation, improving customer experiences, and optimizing operational costs.

Cinepolis, the largest cinema chain in Latin America, hailed AWS infrastructure for enabling seamless content delivery to its widespread audience. Juan Velez Ballesteros, Director of Development and Architecture at Cinépolis, expressed excitement over the prospects of the new AWS Region in Mexico, emphasizing its potential to fuel further innovation and deliver unparalleled entertainment experiences.

Vector Casa de Bolsa, Mexico’s premier independent securities broker-dealer, recognized AWS as a catalyst for innovation and service excellence. Monica Martinez, Chief AI and Innovation Officer at Vector Casa de Bolsa, emphasized the company’s commitment to leveraging AWS to access cutting-edge technologies and build next-generation solutions for its customers.

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