Amazon's AWS To Invest More Than $5B In Mexico For Cluster Of Data Centers
Portfolio Pulse from Benzinga Newsdesk
Amazon Web Services (AWS) plans to invest over $5 billion in a new cluster of data centers in Queretaro, Mexico, over the next 15 years. This move is part of a growing demand for cloud services and comes amid the nearshoring trend. AWS aims to serve clients like Cinepolis, BIVA, Aeromexico, and local governments, potentially reducing their technology costs by around 20%. Amazon has already invested over $3.04 billion in Mexico since 2015.
February 26, 2024 | 2:49 pm
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Amazon's AWS unit is investing over $5 billion in data centers in Mexico, aiming to support cloud services demand and capitalize on nearshoring trends.
The investment in Mexico represents a strategic expansion of AWS's infrastructure, potentially increasing Amazon's market share in cloud services in Latin America. This move could lead to increased revenue from AWS, positively impacting AMZN's stock in the short term.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
The investment by AWS in Mexico could boost the Mexican economy and attract more foreign investment, potentially benefiting the iShares MSCI Mexico ETF (EWW).
AWS's significant investment in Mexico aligns with the nearshoring trend and could enhance the Mexican economy by attracting more foreign investments and creating jobs. This economic boost may positively impact the performance of the iShares MSCI Mexico ETF (EWW), which tracks the investment results of a broad-based index composed of Mexican equities.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 70