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AI demand means data centres are worsening drought in Mexico

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AI demand means data centres are worsening drought in Mexico


Suzanne BearneTechnology Reporter, Querétaro, Mexico

Arterra/Getty Images The stone arches of Querétaro's aqueduct run into the distance next to a roadArterra/Getty Images

Querétaro is known for its impressive stone aqueduct

Located in the middle of Mexico, Querétaro is a charming and colourful colonial-style city known for its dazzling stone aqueduct.

But the city, and state of the same name, is also recognised for a very different reason – as Mexico’s data centre capital.

Across the state companies including Microsoft, Amazon Web Services and ODATA own these warehouse-like buildings, full of computer servers.

No one could supply an exact number, but there are scores of them, with more being built.

Ascenty, which claims to be the largest data centre company in Latin America, has two in Querétaro, both around 20,000 sq ft in size, with a third under construction.

It is forecast that more than $10bn (£7.4bn) in data centre-related investment will pour into the state in the next decade.

“The demand for AI is accelerating the construction of data centres at an unprecedented speed,” says Shaolei Ren, associate professor of electrical and computer engineering at the University of California Riverside.

So, what’s the attraction of Querétaro?

“It’s a very strategic region,” explains Arturo Bravo, Mexico country manager at Ascenty.

“Querétaro is right in the middle [of the country], connecting east, west, north and south,” he says.

That means it is relatively close to Mexico City. It is also connected to high-speed data cables, so large amounts of data can be shifted quickly.

Mr Bravo also points out that there is support from the municipality and central government.

“It’s been identified as a technology hub,” he says. “Both provide a lot of good alternatives in terms of permits, regulation and zoning.”

But why are many US companies choosing this state over somewhere closer to home?

“The power grid capacity constraint in the US is pushing tech companies to find available power anywhere they can,” says Shaolei Ren, associate professor of electrical and computer engineering at the University of California Riverside, adding that the cost of land and energy, and business-friendly policies are also attractive.

Shaolei Ren Shaolei Ren sitting outside a shopShaolei Ren

Shaolei Ren says US tech firms are searching for electricity availability

Data centres host thousands of servers – a specialised type of computer for processing and sending data.

Anyone that’s worked with a computer on their lap will know that they get uncomfortably hot. So to stop data centres melting down, elaborate cooling systems are needed which can use huge amounts of water.

However, not all data centres consume water at the same rate.

Some use water evaporation to dissipate the heat, which works well but is thirsty.

A small data centre using this type of cooling can use around 25.5 million litres of water per year.

Other data centres, like those owned by Ascenty, use a closed-loop system, which circulates water through chillers.

Meanwhile, Microsoft told the BBC it operates three data centres in Querétaro. They use direct outdoor air for cooling approximately 95% of the year, requiring zero water.

It said for the remaining 5% of the year, when ambient temperatures exceed 29.4°C, they use evaporative cooling.

For the fiscal year 2025, its Querétaro sites used 40 million litres of water, it added.

That’s still a lot of water. And if you look at overall consumption at the biggest data centre owners then the numbers are huge.

For example, in its 2025 sustainability report Google stated that its total water consumption increased by 28% to 8.1bn gallons between 2023 to 2024.

The report also said that 72% of the freshwater it used came from sources at “low risk of water depletion or scarcity”.

In addition, data centres also indirectly consume water, as water is needed to produce electricity.

Getty Images A man walks between racks of servers in a data centre.Getty Images

Data centres house thousands of servers which need constant cooling

The extra water consumption by data centres is a big problem for some in Querétaro which last year endured the worst drought of a century, impacting crops and water supplies to some communities.

At her home in Querétaro, activist Teresa Roldán tells me residents have asked the authorities for more information and transparency about the data centres and the water they use but says this has not been forthcoming.

“Private industries are being prioritised in these arid zones,” she says. “We hear that there’s going to be 32 data centres but water is what’s needed for the people, not for these industries. They [the municipality] are prioritising giving the water they have to the private industry. Citizens are not receiving the same quality of the water than the water that the industry is receiving.”

Speaking to the BBC in Querétaro, Claudia Romero Herrara, founder of water activist organisation Bajo Tierra Museo del Agua,  wouldn’t comment directly on the data centres due to a lack of information but says she’s concerned about the state’s water issues.

“This is a state that is already facing a crisis that is so complex and doesn’t have enough water for human disposal. The priority should be water for basic means…that’s what we need to guarantee and then maybe think if there are some resources available for any other economic activity. There has been a conflict of interest on public water policy for the last two decades.”

A spokesperson for the government of the state of Querétaro defended their decision saying: “We have always said and reiterated that the water is for citizen consumption, not for the industry. The municipality has zero faculties to water allocation and even less to assign water quality. Nor the state, nor the municipality can water allocate to any industry or the primary sector, that’s a job for the National Water Commission.”

Suzanne Bearne Teresa Roldán smiling and wearing glassesSuzanne Bearne

Teresa Roldán says local authorities are putting the water needs of industry first

Another concern for those living near data centres is air pollution.

Prof Ren says data centres typically rely on diesel backup generators that release large amounts of harmful pollutants.

“The danger of diesel pollutants from data centres has been well recognised,” he says, pointing to a health assessment of the air quality surrounding local data centres by the Department of Ecology at the state of Washington.

Mr Bravo responded to those concerns by saying: “We operate under the terms and conditions specified by authorities, which, in turn, in my perspective, are the ones taking care of the fact that those conditions are acceptable for the communities around and the health of everybody.”

As for the future, Ascenty is planning more data centres in the region.

“I do see it just kind of progressing and progressing, with a new data centre there every few years,” says Mr Bravo.

“The industry will continue to grow as AI grows. It’s a great future in terms of what is coming.”

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Gross GST collections for November stand at over Rs 1.70 lakh crore; up 0.7 per cent – The Times of India

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Gross GST collections for November stand at over Rs 1.70 lakh crore; up 0.7 per cent – The Times of India


GST collections: The Gross Goods and Services Tax (GST) collections for the month of November came in at over Rs 1.70 lakh crore. This is a rise of 0.7%, according to official data.SBI Research in a report in November had estimated that the gross domestic GST collections may come around Rs 1.49 lakh crore for November 25 (returns of October 25 but filed in Nov’25), a YoY growth of 6.8%.“Coupled with Rs 51,000 crore of IGST and cess on Import, the November GST collections thus could cross Rs 2.0 lakh crore, driven by the peak festive season demand led by lower GST rate and increased compliance while most of states experience positive gains,” SBI Research had said.This story is being updated





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Key Financial Deadlines That Have Been Extended For December 2025; Know The Last Date

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Key Financial Deadlines That Have Been Extended For December 2025; Know The Last Date


New Delhi: Several crucial deadlines have been extended in December 2025, including ITR for tax audit cases, ITR filing and PAN and Aadhaar linking. These deadlines will be crucial in ensuring that your financial affairs operate smoothly in the months ahead.

Here is a quick rundown of the important deadlines for December to help you stay compliant and avoid last-minute hassles.

ITR deadline for tax audit cases

The Central Board of Direct Taxes has extended the due date of furnishing of return of income under sub-Section (1) of Section 139 of the Act for the Assessment Year 2025-26 which is October 31, 2025 in the case of assessees referred in clause (a) of Explanation 2 to sub-Section (1) of Section 139 of the Act, to December 10, 2025.

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Belated ITR filing deadline

A belated ITR filing happens when an ITR is submitted after the original due date which is permitted by Section 139(4) of the Income Tax Act. Filing a belated return helps you meet your tax obligations, but it involves penalties. You can only file a belated return for FY 2024–25 until December 31, 2025. However, there will be a late fee and interest charged.

PAN and Aadhaar linking deadline

The Income Tax Department has extended the deadline to link their PAN with Aadhaar card to December 31, 2025 for anyone who acquired their PAN using an Aadhaar enrolment ID before October 1, 2024. If you miss this deadline your PAN will become inoperative which will have an impact on your banking transactions, income tax return filing and other financial investments.



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Stock Market Live Updates: Sensex, Nifty Hit Record Highs; Bank Nifty Climbs 60,000 For The First Time

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Stock Market Live Updates: Sensex, Nifty Hit Record Highs; Bank Nifty Climbs 60,000 For The First Time


Stock Market News Live Updates: Indian equity benchmarks opened with a strong gap-up on Monday, December 1, touching fresh record highs, buoyed by a sharp acceleration in Q2FY26 GDP growth to a six-quarter peak of 8.2%. Positive cues from Asian markets further lifted investor sentiment.

The BSE Sensex was trading at 85,994, up 288 points or 0.34%, after touching an all-time high of 86,159 in early deals. The Nifty 50 stood at 26,290, higher by 87 points or 0.33%, after scaling a record intraday high of 26,325.8.

Broader markets also saw gains, with the Midcap index rising 0.27% and the Smallcap index advancing 0.52%.

On the sectoral front, the Nifty Bank hit a historic milestone by crossing the 60,000 mark for the first time, gaining 0.4% to touch a fresh peak of 60,114.05.

Meanwhile, the Metal and PSU Bank indices climbed 0.8% each in early trade.

Global cues

Asia-Pacific markets were mostly lower on Monday as traders assessed fresh Chinese manufacturing data and increasingly priced in the likelihood of a US Federal Reserve rate cut later this month.

According to the CME FedWatch Tool, markets are now assigning an 87.4 per cent probability to a rate cut at the Fed’s December 10 meeting.

China’s factory activity unexpectedly slipped back into contraction in November, with the RatingDog China General Manufacturing PMI by S&P Global easing to 49.9, below expectations of 50.5, as weak domestic demand persisted.

Japan’s Nikkei 225 slipped 1.6 per cent, while the broader Topix declined 0.86 per cent. In South Korea, the Kospi dropped 0.30 per cent and Australia’s S&P/ASX 200 was down 0.31 per cent.

US stock futures were steady in early Asian trade after a positive week on Wall Street. On Friday, in a shortened post-Thanksgiving session, the Nasdaq Composite climbed 0.65 per cent to 23,365.69, its fifth consecutive day of gains.

The S&P 500 rose 0.54 per cent to 6,849.09, while the Dow Jones Industrial Average added 289.30 points, or 0.61 per cent, to close at 47,716.42.



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