Thirsty data centres boom in drought-hit Mexico

Querétaro, a vibrant city in central Mexico, is well known for its beautiful stone aqueduct, a historic structure that stretches across the landscape. However, Querétaro is also gaining fame for a very different reason: it has become the data centre capital of Mexico. Data centres are large buildings filled with computer servers that store, process, and send data all over the world. Major companies like Microsoft, Amazon Web Services, and ODATA have set up many data centres in Querétaro, and the number keeps growing. Ascenty, the largest data centre company in Latin America, already has two centres in the city, each about 20,000 square feet, and is building a third. Experts predict that more than ten billion dollars will be invested in data centres in Querétaro over the next decade.

There are several reasons why Querétaro is so attractive for data centre companies. Its location in the middle of Mexico makes it easy to connect to other parts of the country, including Mexico City. The city also has access to high-speed data cables, which are important for moving large amounts of information quickly. The local and central governments support technology companies by making it easier to get permits and follow regulations. Some US companies are choosing Querétaro over locations in the United States because it is easier to find enough electricity and land, and the costs are lower. The US has problems with power grid capacity, so tech companies are looking for places where they can get the power they need.

Data centres use a lot of electricity and water, especially to keep their servers cool. Some cooling systems use water evaporation, which can consume millions of litres each year. For example, Microsoft has three data centres in Querétaro. Most of the time, they use outdoor air to cool their servers, but when it gets very hot, they switch to water-based cooling. In the last year, Microsoft used forty million litres of water at its Querétaro sites. Google also reported a big increase in water use, with its total consumption rising by 28 percent to 8. 1 billion gallons between 2023 and 2024. This is a concern because Querétaro suffered its worst drought in a century last year, which affected crops and water supplies for local communities.

Some residents and activists are worried that data centres are using too much water, leaving less for people. They say the government is giving priority to private companies instead of citizens. The government says that water is meant for people, not for industry, and that only the National Water Commission can decide how water is distributed. Another issue is air pollution from diesel generators used by data centres when there is a power outage. These generators can release harmful pollutants into the air. Companies say they follow all the rules to protect the health of local communities. Despite these concerns, Ascenty and other companies plan to build more data centres in Querétaro as the demand for artificial intelligence and data processing continues to grow. The future looks busy for Querétaro, with more data centres expected to open every few years.