Business
AI demand means data centres are worsening drought in Mexico
Suzanne BearneTechnology Reporter, Querétaro, Mexico
Arterra/Getty ImagesLocated 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 RenData 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 ImagesThe 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 BearneAnother 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.”
Business
PepsiCo earnings beat estimates as North American food business improves
Illuminated logo for Pepsi on a soda fountain in Walnut Creek, California, March 4, 2026.
Smith Collection | Gado | Archive Photos | Getty Images
PepsiCo on Thursday reported quarterly earnings and revenue that topped analysts’ expectations as its struggling North American food business reported a return to volume growth.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
- Earnings per share: $1.61 adjusted vs. $1.55 expected
- Revenue: $19.44 billion vs. $18.94 billion expected
Pepsi reported first-quarter net income attributable to the company of $2.32 billion, or $1.70 per share, up from $1.83 billion, or $1.33 per share, a year earlier.
Excluding items, the company earned $1.61 per share.
Net sales rose 8.5% to $19.44 billion.
Business
Bank will not rush into moving rates despite ‘big energy shock’, says Bailey
Bank of England governor Andrew Bailey has warned the global economy is set for a “very big energy shock” that will lead to surging inflation, but said policymakers would not rush to hike interest rates.
Speaking at the International Monetary Fund (IMF) spring meeting in Washington DC, Mr Bailey told the BBC the Bank is facing a “very, very difficult” decision on rates at its meeting on April 30.
The Middle East conflict has sent oil prices surging by around 60% since the start of the year, at one stage hitting nearly 120 US dollars a barrel, which is pushing up fuel and energy costs.
This is expected to feed through to wider prices, with forecasts for UK inflation to jump higher in the coming months and Britain’s growth outlook sharply downgraded.
But official figures on Thursday, which were released after Mr Bailey’s comments, showed the UK economy was far stronger than expected at the start of the year, with growth of 0.5% in February following upwardly revised expansion of 0.1% in January.
Experts said while welcome, UK activity is still set to slow sharply as higher energy prices weigh on spending and hamper growth.
Mr Bailey told the BBC: “There’s really difficult judgments to be made.
“We’re not going to rush to judgments on those things, because there are a lot of uncertainties around this, not just how it’s going to play out, but also how it’s going to pass through into the UK economy.”
The IMF’s economic outlook report earlier this week showed the UK facing the biggest downgrade to growth among the G7 group of countries, with 0.8% forecast for 2026, down sharply from the 1.3% predicted in January.
The influential financial body said the spike in energy prices caused by the war will help push UK inflation towards 4% – double the Bank of England’s target.
But the IMF cautioned central banks about making hasty decisions on interest rates.
The Bank of England had previously been expected to cut rates further this year, down from 3.75% currently, but the predicted inflation surge caused by the Iran war has led to forecasts that hikes could be on the way.
Mr Bailey said the Bank is taking the IMF’s “serious advice” into account.
On fears over supply shortages caused by the Iran war disruption and blockage of the crucial Strait of Hormuz shipping route, Mr Bailey said there is “a certain amount of resilience in the system” but that will only last so long.
He added: “The faster there is a resolution to this situation – I particularly mean in terms of the supply of energy coming out of the Gulf – the easier and better the outcome will be.
“That’s really critical at this moment.”
Business
UK economy grew faster than expected in February ahead of Iran war
The economy saw its biggest monthly rise in more than two years just before the outbreak of the US-Israeli war with Iran.
Source link
-
Entertainment1 week agoQueen Elizabeth II emotional message for Archie, Lilibet sparks speculation
-
Tech1 week agoAzure customers up in arms over ‘full’ UK South region | Computer Weekly
-
Tech1 week agoAs the Strait of Hormuz Reopens, Global Shipping Will Take Months to Recover
-
Fashion1 week agoCII submits 20-pt agenda to Indian govt to back firms hit by Iran war
-
Tech1 week agoThis AI Button Wearable From Ex-Apple Engineers Looks Like an iPod Shuffle
-
Politics6 days agoIndian airlines hit hardest after Dubai limits foreign flights until May 31
-
Fashion1 week agoICE cotton hits 11-month high on drought concerns, demand boost
-
Politics6 days agoChinese, Taiwanese will unite, Xi tells Taiwan opposition leader

