Data Centres in Querétaro: Water Consumption Amid Mexico’s Ongoing Drought

Querétaro, a colonial city in central Mexico, is becoming a data centre hub, attracting major tech companies like Microsoft, Amazon Web Services, and Ascenty. The state’s strategic location, robust infrastructure, and favorable policies have led to a surge in data centre development. Ascenty alone operates two massive centres, with more under construction. With the rising demand for AI, more investments are pouring in, projected to exceed $10bn in the next decade. However, the booming industry comes at a significant cost: water. Data centres require massive amounts of water for cooling, with some using over 25 million litres annually. Microsoft operates centres in Querétaro that use minimal water for most of the year, but other facilities rely on evaporative cooling, exacerbating the region’s water scarcity. In 2024, Google reported a 28% increase in its water consumption due to its growing data centre operations. Local activists are concerned that the water needs of these industries are taking precedence over the needs of residents, especially in the context of the worst drought in a century. While the local government defends its water allocation policies, critics argue that transparency is lacking, and the state’s water crisis is being overlooked. The expansion of data centres in this region raises important questions about balancing economic growth with the sustainability of vital resources like water.