Mexico’s state of Querétaro has become a hub for the booming datacentre industry, attracting tech giants such as Amazon, Microsoft, and Google, which are investing billions in the region. However, while the industry promises economic growth and high-tech jobs, many locals are raising concerns about its impact on the already strained water and electricity resources. The debate intensifies as the region experiences one of its worst droughts in decades, and the future of its infrastructure is uncertain.

Datacentre Expansion and Economic Promise

Querétaro has been positioning itself as a high-tech hub in Mexico, drawing significant investments from major companies. With Amazon pledging $5 billion and Google and Microsoft also setting up operations, the region is experiencing a construction boom and the creation of a limited number of well-paid jobs. According to Marco Del Prete, Querétaro’s Minister for Sustainable Development, the state is now “in the sights of the world.” The Mexican Association of Data Centres estimates the current pipeline of datacentre projects amounts to 600 megawatts (MW) of capacity, a huge jump from the existing 160MW.

Strain on Water Resources

Despite the economic benefits, the rapid expansion of datacentres poses significant challenges for Querétaro’s water supply. The state’s underground aquifers have been under stress for decades, and the construction of the Aqueduct II in 2011 to supply water from rural areas has not been enough to meet the growing demand. Communities like Maconí, located along the path of Aqueduct II, have been especially hard-hit, with some residents relying on trucks or donkeys to deliver water as springs dry up. The local government is facing accusations of prioritizing industrial water needs over the well-being of its citizens.

Electricity Demands and Environmental Concerns

Beyond water, the electricity demands of datacentres are also a cause for concern. Each 1MW datacentre requires massive amounts of energy to power its servers and cooling systems. Although companies like Equinix claim their operations are environmentally responsible, with some datacentres employing closed-loop water cooling systems, these solutions often increase energy consumption. With 77% of Mexico’s electricity generated from fossil fuels, the environmental impact remains significant, especially in a region already experiencing power outages.

Lack of Transparency

Another major issue is the lack of transparency regarding the water and energy consumption of these datacentres. In Europe, new regulations will soon require datacentres to disclose their resource usage, but in Mexico, no such regulations exist. Local politicians, like Gilberto Herrera of the Morena party, are calling for greater transparency and questioning whether the benefits of the datacentre boom truly outweigh the costs.

While the datacentre industry promises economic growth for Querétaro, it raises serious concerns about sustainability and the long-term impact on local resources. Without clear regulations and greater transparency, the region risks exacerbating its existing water and energy challenges, potentially leaving its citizens to bear the costs.