In the heart of Mexico, Querétaro is better known for its colonial charm and the iconic stone aqueduct, but in recent years it has earned a very different title – the country’s data centre capital. Technology giants including Microsoft, Amazon Web Services, and ODATA have set up sprawling server facilities across the state, with dozens already operational and more under construction. Ascenty, Latin America’s largest data centre operator, has two major sites in Querétaro and a third underway, each around 20,000 sq ft. Industry estimates suggest more than $10 billion will flow into the sector in the state over the next decade, driven largely by surging global demand for artificial intelligence.
Experts point to Querétaro’s strategic location in the middle of Mexico, close to Mexico City and well connected to high-speed data cables, as key reasons for the boom. Supportive local and federal policies on permits and zoning have further boosted investment, while limited power grid capacity in the US has encouraged American firms to look south. Affordable land and energy also make the state an attractive destination.
But the rapid expansion has not come without controversy. Data centres consume vast amounts of energy and water to keep thousands of servers cool. While some operators, such as Ascenty, use closed-loop systems that recycle water, others still rely on water-intensive evaporative cooling. Microsoft has said its three facilities in Querétaro use outdoor air cooling for most of the year but required 40 million litres of water in 2025 during periods of high temperature. Globally, the issue is mounting: Google reported its water consumption rose 28% between 2023 and 2024, reaching 8.1 billion gallons.
This is particularly sensitive in Querétaro, which suffered its worst drought in a century last year, leaving crops and communities struggling. Local activists argue that residents are being sidelined in favour of private industry. “We hear that 32 data centres are coming, but water is needed for people, not industries,” said campaigner Teresa Roldán, alleging that authorities provide better water access to companies than citizens. Others warn of broader policy failures, insisting that human consumption should remain the priority in a state already facing severe shortages.
Government officials, however, insist that water allocation is handled nationally and emphasise that supplies are primarily for citizens. Meanwhile, environmentalists have also raised concerns about diesel backup generators used at data centres, which can release harmful pollutants. Despite the criticism, companies say they are operating within regulations and continue to expand, with new projects already in the pipeline. As demand for AI surges, Querétaro looks set to remain at the centre of Mexico’s digital growth story.
