Data Centers in Mexico: Balancing Growth with Water and Energy Constraints

Web Editor

November 10, 2025

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The Rise of AI and Data Centers in Mexico

As artificial intelligence (AI) reshapes the digital infrastructure landscape in Mexico, the data center industry is experiencing significant growth. By 2025, experts predict that Mexico will continue to attract investments in data centers, with Querétaro as the primary hub. However, this expansion puts pressure on two critical resources: energy and water.

Technological Transition and Cost Implications

The Mexican data center sector is undergoing a technological transition, moving from traditional air-cooled facilities to high-density sites designed for AI. This shift brings increased costs and new supply chain dependencies, as highlighted by the 2025-2026 Data Center Construction Cost Index from Turner & Townsend. According to the report, 83% of specialists surveyed believe that suppliers are not yet prepared for the cooling technology required by AI clusters, with energy availability being the primary obstacle to timely project delivery.

Mexico’s Unique Position and Challenges

Lloyd Wallace, Director of Real Estate and Data Centers Lead for Latin America at Turner & Townsend, acknowledges Mexico’s potential to become a leader in AI data center development. Querétaro’s growth signifies investor confidence, but success hinges on strengthening supply chains and ensuring reliable energy access. The country’s proximity to North American clients, international connectivity, and supportive policies have contributed to this growth.

Water Scarcity and Regulatory Considerations

Marissa Mar Pecero, a consultant on water, transparency, and TICs, emphasizes the importance of understanding water measurement, quality, climate change scenarios, existing infrastructure, and legal frameworks governing industrial uses in water-stressed areas. She stresses the need for transparent planning, data, and intergovernmental coordination due to domestic water use priority.

Technical Discussion and Sustainability

The discussion has expanded beyond the Power Usage Effectiveness (PUE) metric. Panelists advocate for rigorous measurement and reporting of both energy and water performance, adjusting cooling technology to local hydrological realities. Available options range from adiabatic and free-air cooling in suitable climates to liquid solutions and wastewater treatment recovery where high power density and temperature demand it.

Energy Landscape and Renewable Solutions

AI is projected to significantly increase the electricity demand of the data center sector. Although currently a minor fraction of global consumption, the expected growth in 10 years pushes for accelerated use of renewable energy, storage, and intelligent load management. Sustainable energy is not a constraint but a competitive advantage, as those providing efficient, clean, and predictable electricity will lead the digital race.

Balancing Growth with Responsible Resource Management

The Mexican government aims to create conditions for certainty, dialogue, infrastructure, and clear regulations protecting the environment while attracting high-value investment. The challenge lies in measuring, reporting, and decision-making based on data; adapting technologies to hydrological stress; and ensuring each new megawatt of computing comes with a clear plan for clean energy and responsible water use.

The growth of data centers in Mexico will continue, along with the pressure on water and energy resources. The industry’s transition to high-density designs and public administration’s role as a facilitator with rules and coordination are crucial. However, achieving balance will require data-driven decisions, technology adaptation to hydrological stress, and responsible resource management plans.

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