Querétaro, nestled in the heart of Mexico, is a picturesque colonial city celebrated for its vibrant atmosphere and striking stone aqueduct.
However, both the city and the state that shares its name are increasingly recognized for a different distinction: their status as Mexico’s data center capital.
Across the state, prominent companies such as Microsoft, Amazon Web Services, and ODATA operate sprawling, warehouse-like facilities housing vast arrays of computer servers.
While an exact figure remains elusive, numerous data centers already exist, with ongoing construction signaling further expansion.
Ascenty, which identifies itself as Latin America’s largest data center firm, operates two facilities in Querétaro, each spanning approximately 20,000 square feet, and is currently developing a third.
Projections indicate that data center-related investments in the state will exceed $10 billion (£7.4 billion) over the next decade.
“The escalating demand for AI is driving data center construction at an unprecedented pace,” observes Shaolei Ren, Associate Professor of Electrical and Computer Engineering at the University of California Riverside.
What, then, accounts for Querétaro’s burgeoning appeal?
“It’s a strategically advantageous region,” explains Arturo Bravo, Mexico Country Manager at Ascenty.
“Querétaro’s central location within the country provides connectivity to the east, west, north, and south,” he notes.
This central position offers relative proximity to Mexico City, coupled with access to high-speed data cables facilitating rapid data transfer.
Mr. Bravo also emphasizes the support extended by both municipal and central government entities.
“It has been identified as a technology hub,” he states. “Both levels of government offer favorable options regarding permits, regulations, and zoning.”
But why are many U.S. companies choosing this state over locations closer to home?
“Power grid capacity constraints in the U.S. are compelling tech companies to seek available power wherever they can find it,” says Prof. Ren, adding that lower land and energy costs, along with business-friendly policies, also contribute to the state’s attractiveness.
Data centers house thousands of servers, specialized computers designed for processing and transmitting data.
As anyone who has used a laptop can attest, these devices generate considerable heat. To prevent data centers from overheating, sophisticated cooling systems are required, often consuming substantial quantities of water.
However, water consumption rates vary among data centers.
Some rely on water evaporation for cooling, an effective but water-intensive method.
A small data center employing this type of cooling can consume approximately 25.5 million liters of water annually.
Other data centers, including those operated by Ascenty, utilize closed-loop systems, circulating water through chillers.
Microsoft informed the BBC that its three data centers in Querétaro primarily use direct outdoor air for cooling, eliminating water consumption for approximately 95% of the year.
For the remaining 5% of the year, when ambient temperatures exceed 29.4°C, evaporative cooling is employed.
The company added that its Querétaro sites consumed 40 million liters of water in fiscal year 2025.
Even with such efficiencies, the overall water consumption of major data center operators remains substantial.
For instance, Google reported in its 2025 sustainability report that its total water consumption increased by 28% to 8.1 billion gallons between 2023 and 2024.
The report also indicated that 72% of the freshwater used by the company originated from sources at “low risk of water depletion or scarcity.”
Furthermore, data centers indirectly consume water through the water required for electricity generation.
This added water consumption poses a significant challenge for some communities in Querétaro, which endured the worst drought in a century last year, impacting crops and water supplies.
Querétaro resident and activist Teresa Roldán reports that local residents have sought greater transparency from authorities regarding data centers and their water usage, but these requests have gone unanswered.
“Private industries are being prioritized in these arid zones,” she asserts. “We hear that there will be 32 data centers, but water is essential for the people, not just for these industries. The municipality is prioritizing water allocation to private industry, and citizens are not receiving the same quality of water.”
Speaking to the BBC in Querétaro, Claudia Romero Herrara, founder of water activist organization Bajo Tierra Museo del Agua, refrained from commenting directly on the data centers due to limited information but expressed concern about the state’s water situation.
“This state already faces a complex crisis with insufficient water for human disposal. The priority should be water for basic needs…that’s what we need to guarantee, and then consider if any resources remain for other economic activities. There has been a conflict of interest in public water policy for the last two decades.”
A spokesperson for the government of the state of Querétaro defended their decision, stating: “We have always said and reiterated that the water is for citizen consumption, not for the industry. The municipality has zero faculties to water allocation and even less to assign water quality. Nor the state, nor the municipality can water allocate to any industry or the primary sector, that’s a job for the National Water Commission.”
Air pollution is another concern for those residing near data centers.
Prof. Ren notes that data centers typically rely on diesel backup generators, which release substantial amounts of harmful pollutants.
“The danger of diesel pollutants from data centers has been well recognized,” he states, citing a health assessment of air quality surrounding local data centers conducted by the Department of Ecology in the state of Washington.
Mr. Bravo responded to these concerns by saying: “We operate under the terms and conditions specified by authorities, which, in turn, in my perspective, are the ones taking care of the fact that those conditions are acceptable for the communities around and the health of everybody.”
Looking ahead, Ascenty plans to expand its data center presence in the region.
“I do see it just kind of progressing and progressing, with a new data center there every few years,” says Mr. Bravo.
“The industry will continue to grow as AI grows. It’s a great future in terms of what is coming.”
Chief executive Peter Hebblethwaite led the company when it sacked hundreds of staff in March 2022.
Lower-price goods will no longer be duty-free, in a move that will affect millions of shipments.
The BBC has found an international network of content creators profiting from AI generated posts on Facebook.
The parasites mainly infest cattle but there have also been dozens of cases involving people.
A fight erupted in the senate involving two senior Mexican politicians.