Querétaro, a colourful colonial city in central Mexico, is gaining fame not just for its aqueduct but as a technology hub.
The state now hosts scores of data centres run by giants including Microsoft, Amazon Web Services, ODATA and Latin America’s Ascenty.
More than $10bn in investment is expected over the next decade, fuelled by soaring demand for artificial intelligence services.
Querétaro’s central location, good data connections, affordable energy and government support make it an attractive alternative to US locations.
But the industry’s growth is sparking fears over water use, particularly in a state recently hit by its worst drought in a century.
Cooling systems in data centres consume huge amounts of water, although companies use different methods with varying environmental impact.
Microsoft says its three centres in Querétaro use outdoor air for cooling most of the year, requiring no water during that time.
However, in hotter months its facilities still consumed 40 million litres in fiscal 2025, raising questions about sustainability.
Critics say industry is being prioritised over communities struggling with water shortages. Activist Teresa Roldán warns residents face poorer supply.
Claudia Romero Herrera of Bajo Tierra Museo del Agua adds Querétaro already suffers a complex crisis without enough water for people.
The state government insists water is reserved for citizens, stressing allocation is controlled by the federal National Water Commission.
Air pollution is another concern, as diesel backup generators release pollutants, though companies say they comply with regulations.
Despite protests, more centres are planned. Industry leaders predict relentless growth as artificial intelligence continues reshaping global data demand.
