Mexico’s drought-stricken state faces water crisis as tech giants plan 32 massive data centers

The state of Querétaro in central Mexico is caught in a devastating paradox: while enduring its worst drought in 100 years, it’s simultaneously becoming the epicenter of Mexico’s data center boom, with 32 new facilities planned that will consume enormous amounts of water and energy.

The drought has left 17 of Querétaro’s 18 municipalities struggling with water shortages, threatening drinking water access for thousands of families according to Mexico’s National Water Commission. Yet despite this crisis, tech companies are flocking to the region. In September, U.S. firm CloudHQ announced a $4.8 billion investment to build Mexico’s largest “hyperscale” data center campus in Querétaro, primarily for cloud computing and artificial intelligence operations. Other tech giants like Microsoft and Amazon are also eyeing the area.

Data centers require massive amounts of water for cooling systems and enormous energy supplies to power servers that handle our internet searches, social media, and increasingly, AI applications. This surge in digital infrastructure comes at the worst possible time for Querétaro’s already-strained water resources, which are further depleted by climate change.

Local environmental activists are pushing back against these developments, arguing that government priorities are backwards. “Water is what’s needed for the people, not for these industries,” says campaigner Teresa Roldán, who is working with communities to protect local water sources and Mexico’s national tree, the Montezuma cypress, from development pressures. The conflict highlights a growing global tension between our digital demands and environmental sustainability.