U.S.-based technology firm CloudHQ has announced a $4.8 billion investment to build six data centers in Queretaro, Mexico, marking one of the country’s largest digital infrastructure projects to date. The development aims to support the growing demand for cloud computing and artificial intelligence (AI) services across Latin America.
Major Digital Infrastructure Expansion
CloudHQ Chief Operating Officer Keith Harney revealed at a press conference alongside Mexican government officials that the company is securing a long-term tenant lease before starting construction. The project will include a 900-megawatt private substation to deliver the constant and reliable power required to operate the energy-intensive data centers.
“This investment strengthens Mexico’s capacity to process data related to artificial intelligence and information technology,” said President Claudia Sheinbaum, who emphasized that the project would also bring economic benefits to local communities.
Sustainable and Water-Efficient Design
Data centers require vast amounts of electricity and cooling, often placing stress on local resources. Harney confirmed that CloudHQ’s facilities will feature a waterless cooling system to minimize water use, while Economy Minister Marcelo Ebrard highlighted that the site’s water consumption will be “very low.”
The environmental safeguards are particularly important for Queretaro, a region that has faced chronic water stress due to industrial activity, agriculture, and the impacts of climate change. Harney added that the project aims to source clean energy wherever possible, although the immense power requirements mean renewable energy may not meet all of its needs.
Economic Impact and Job Creation
Construction of the six data centers is expected to be completed by 2027, creating approximately 900 permanent jobs and many more during the building phase. The project is poised to attract additional technology investments and position Mexico as a competitive hub for data services in the Americas.
Industry analysts note that data centers are critical to supporting the rapid adoption of AI-driven applications, cloud storage, and big data processing, all of which are growing at double-digit rates worldwide. CloudHQ’s move reflects the surging demand for digital infrastructure across Latin America as companies modernize operations and governments accelerate digital transformation.
Strengthening Mexico’s Tech Ecosystem
By selecting Queretaro, CloudHQ joins a growing list of global technology firms that see central Mexico as an ideal location for hyperscale data centers due to its strategic geography, skilled workforce, and improving energy infrastructure. The project will enhance Mexico’s role as a regional technology leader and provide businesses with low-latency cloud and AI capabilities.
Mexico’s data-center market
Mexico’s data-center market is expanding rapidly as global cloud and AI demand rises, attracting multi-billion-dollar projects from leading technology companies.
ODATA, part of Aligned Data Centers, has launched a massive campus in Querétaro with an investment of more than US$3 billion and plans for up to 300 MW of IT power; the first phase is already operational at about 72 MW.
Amazon Web Services (AWS) has committed over US$5 billion to build a new AWS cloud region in Querétaro to meet fast-growing cloud needs across Latin America.
Google Cloud is opening its first Mexican cloud region in Querétaro, providing multiple availability zones to support machine learning and other advanced services.
Scala Data Centers has invested roughly US$80 million in a hyperscale facility near Mexico City (SMEXTP01) with a planned capacity of almost 8 MW and certified 100 percent renewable energy.
According to the Mexican Data Center Association, total investment in the Bajío region, which includes Querétaro, Guanajuato, Aguascalientes and San Luis Potosí, is projected to reach US$8 billion to US$8.5 billion, with Querétaro alone expecting 10 to 12 new facilities on top of the 18 already operating, adding roughly 200 MW of capacity.
MDC Data Centers is also entering the market with its MDC-QRO facility in Querétaro, starting with about 10,000 square feet of space and 2 MW of secured power, and targeting operations by early 2026..
With a multi-billion-dollar investment, sustainable design, and a focus on cutting-edge cloud computing and artificial intelligence, CloudHQ’s initiative represents a milestone in Mexico’s digital economy—one that promises lasting economic, environmental, and technological benefits.
Rajani Baburajan
