Amazon to invest $5.0 billion in Mexico: find out more

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Written on Feb 26, 2024

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Amazon to set up a cluster of data centers in Queretaro, Mexico.
Amazon Web Services can cut tech costs by a whopping 20%.
$AMZN is currently up about 45% versus its low in late October.

Amazon.com Inc (NASDAQ: AMZN) is in the green this morning after announcing plans of investing about $5.0 billion in Mexico.

AWS to set up data centers in Mexico

Amazon Web Services will build a cluster of data centers in Queretaro over the next fifteen years.

Note that the tech behemoth has invested a little over $3.0 billion since it arrived in Mexico in 2025. AWS has several prominent clients in Mexico, including Cinepolis (cinema chain), BIVA (stock exchange), Aeromexico (airline) and local governments.

Earlier in February, Amazon reported $24.20 billion in quarterly revenue from its cloud segment – up 13% on a year-over-year basis and said acceleration will likely continue in 2024.

Wall Street currently has a consensus “buy” rating on $AMZN that has already gained about 45% since its low in late October.

Amazon Web Services can cut tech costs by 20%

The announcement arrives months after Tesla Inc also revealed plans of setting up a factory in Mexico as Invezz reported here.

Mexican government recently announced tax incentives for companies that opted to move operations to Mexico. Whether or not Amazon received such fiscal benefits, however, remains unknown.

On Monday, Ruben Mugartegui (Head of Amazon Web Services Mexico) said using AWS can help companies trim their technology costs by a whopping 20%.

$AMZN has been pushing to expand its footprint in cloud-computing and artificial intelligence. The Seattle-headquartered firm announced “Trainium2” – an AI chip at its Reinvent conference in November of 2023 (find out more).