Amazon Web Services to invest over $5bn in Mexico to enhance digital economy

Amazon Web Services (AWS), a subsidiary of Amazon.com, Inc. (NASDAQ:AMZN), has declared its intentions to launch a new AWS infrastructure region in Mexico by early 2025. This initiative, named the AWS Mexico (Central) Region, is poised to significantly enhance cloud service accessibility for a diverse range of users including developers, startups, entrepreneurs, enterprises, and various organizational bodies such as government, education, and nonprofit entities. With this move, AWS aims to offer greater flexibility for application deployment and end-user service from data centers situated within Mexico, catering to those who prefer or require their data to be stored domestically.

In a testament to its long-standing commitment to Latin America, AWS plans to channel more than $5 billion (approximately MXN $85 billion) into Mexico over a span of 15 years. This investment highlights AWS’s dedication to fostering digital and economic transformation within the region, providing state-of-the-art, secure cloud technologies to its clientele.

Raquel Buenrostro, Mexican Secretary of Economy, praised AWS’s expansion and investment as a “sign of trust” that underscores the favorable conditions in Mexico supporting the nearshoring trend across various economic sectors. She also commended AWS’s efforts in training a wide range of individuals and organizations, from students to digital entrepreneurs, at a large scale.

Prasad Kalyanaraman, Vice President of Infrastructure Services at AWS, expressed enthusiasm about assisting customers across nearly every industry in Mexico to innovate and expand. He emphasized AWS’s role in supporting the country’s digital transformation and economic growth, leveraging advanced technologies like artificial intelligence (AI) and machine learning (ML).

The forthcoming AWS Region will feature three Availability Zones at launch. These zones are part of AWS’s global infrastructure, which includes 105 Availability Zones across 33 geographic regions. The expansion into Mexico adds to AWS’s ongoing efforts to increase its global footprint, with plans to introduce additional Availability Zones and regions in various countries, aiming to meet the growing demand for cloud services worldwide.

The AWS Mexico (Central) Region is designed to meet data residency preferences, achieve lower latency, and cater to the increasing demand for cloud services across Latin America. This expansion allows a broad spectrum of customers to utilize AWS’s comprehensive service portfolio, which encompasses analytics, AI, computing, database, IoT, ML, mobile services, storage, and more.

The establishment of the AWS Mexico (Central) Region marks a pivotal step in AWS’s commitment to enhancing digital infrastructure in Latin America. By offering localized data storage options and leveraging Mexico’s strategic position, AWS not only caters to the immediate needs of its customers but also sets the stage for fostering innovation and technological advancement across the region. This strategic move by AWS underscores the importance of cloud services in driving economic growth and digital transformation, signifying a positive outlook for Mexico’s digital landscape and its position in the global tech ecosystem.