In Mexico, the concentration of data centers raises concerns among residents of Querétaro state

Querétaro has become Mexico’s main data centre hub, bringing investment but raising concerns among residents and environmental groups about pressure on scarce water and electricity. In Palo Alto, where 18 centres operate within 20 kilometres, some residents say they were not told what was being built nearby, while farmers face pressure to sell land to developers.

The state holds 72% of Mexico’s installed data centre capacity and is expected to attract nearly 70% of the sector’s announced $82.5 billion investment for 2026–31. Researchers say there is little public information on facilities’ resource use; drought has affected 88% of Querétaro since 2020, and the Microsoft centre has a permit for 25 million litres of water annually. Companies’ job claims are also disputed: an operating data centre typically provides about 200 permanent jobs, and President Claudia Sheinbaum has said the sector consumes substantial resources while creating relatively few jobs.