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Written by Valentine Hilaire
MEXICO CITY (Reuters) – Amazon.com Inc.’s Amazon Web Services Mexico (AWS) said on Monday it would open 50 data center clusters in Mexico as demand for cloud services increases with a growing number of companies. announced an investment of more than $1 billion. Adopt new technology.
The cluster will be built in the Mexican state of Queretaro, Ruben Mugartegui, head of Amazon Web Services Mexico, told Reuters in an interview, adding that the investment would be made over the next 15 years.
Mugartegui said the company has been working on the project for more than five years.
AWS currently serves clients such as Mexican theater operator Cinepolis, stock exchange BIVA, airline Aeromexico, and local governments.
Cloud computing allows businesses to access technology services such as storage and databases over the Internet, eliminating the need to own and maintain physical data centers or servers. Citing research, Mugartegui said businesses can reduce technology costs by about 20% using his AWS.
Amazon has invested more than 52 billion pesos ($3.04 billion) in Mexico since entering the country in 2015.
The new investment comes amid so-called nearshoring, where companies move operations from Asia closer to the United States due to supply chain disruptions caused by the coronavirus pandemic.
The Mexican government has sought to attract companies to invest in the country, including through legislation last year that gave tax incentives to companies wishing to relocate to the country.
Mugartegui declined to say whether Amazon received any financial benefits, but the company is working closely and efficiently with the government, and companies moving to Mexico are on the list of potential new customers. he pointed out.
Automaker Tesla announced last year that it would build a factory in Mexico. Local authorities approved $153 million in incentives for Tesla, bringing the total investment to more than $5 billion.
(1 dollar = 17.1265 Mexican pesos)
(Reporting by Valentine Hilaire; Editing by Michael Perry)
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