Microsoft to invest $1.3bn to expand Mexico's cloud and AI infrastructure

Microsoft to invest $1.3bn to expand Mexico's cloud and AI infrastructure

 Satya Nadella, chair and CEO of Microsoft addresses the crowd at Microsoft's AI Tour in Mexico City

Microsoft is continuing its infrastructure spending spree after it announced plans to spend $1.3 billion building out cloud and AI capacity in Mexico.

During the latest leg of Microsoft's AI Tour in Mexico City, the tech giant announced its plans to enhance infrastructure in the country through a "significant investment” aimed at increasing local computing capacity to encourage AI adoption.

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“We are entering a new era of AI with the promise to create inclusive economic growth and opportunity across every role, industry, and country, including in Mexico,” said Satya Nadella, chair and CEO of Microsoft. “Our investments in AI infrastructure and skilling in Mexico will help ensure people and organisations across the country realise the benefits of this technology shift.”

To support its infrastructure efforts in Mexico, Microsoft said it would increase access to clean water and sanitation solutions through water replenishment projects.

The company recently partnered with the Next 150 to remove up to 95,000 tons of CO2 from a biochar project in Guanajuato, Mexico. This adds to an earlier deal with Toroto SAPI de CV to remove 234,000 tons of CO2 in Campeche, Mexico.

Microsoft also plans to leverage its AI for Good program to address connectivity challenges in the country. It recently expanded a deal with Viasat to improve network access across the country, to connect more than 1.45 million Mexican people by the end of 2025.

“Today’s announcement demonstrates Microsoft’s trust and commitment to Mexico supporting inclusive economic growth in the country,” said Rafael Sánchez Loza, general manager of Microsoft Mexico. “With this, we are empowering individuals, companies, and society to enhance innovation and democratise the use of AI through skills development, knowledge sharing, and access to cutting-edge technology and digital infrastructure, while also meeting our sustainability goals.”

Microsoft's Mexico announcement is the latest in an ever-growing line of infrastructure investments to support its AI efforts.

With data centre projects planned to launch in Japan, Thailand, and the Middle East as well as France, Malaysia, and Indonesia, Microsoft's infrastructure expansions are aimed at supporting increasing demand for its AI services, such as the Azure OpenAI Service.

It’s also looking to shore up energy supply for its increasing infrastructure footprint, including reviving the infamous Three Mile Island nuclear site to supply carbon-free energy.

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