Mexico hails $5 bn Amazon investment in face of Trump threats

Amazon Web Services (AWS) Investment in Mexico - Amazon Web Services (AWS) is the world's largest cloud computing company with global data centers [1] - AWS announced a $5 billion investment in a new data center in Queretaro, Mexico [2][3] - The investment is part of a broader tech industry push to expand storage facilities for AI needs [3] - The data center is expected to generate 7,000 jobs and contribute over $10 billion to Mexico's economy over 15 years [10] Mexico's Economic Strategy - Mexico aims to become the world's 10th largest economy, up from 12th, by attracting $277 billion in investments [3] - The country is promoting "nearshoring" to attract US companies moving production from Asia to closer markets [7] - Mexico replaced China as the United States' largest trade partner last year [5] Trade Relations and Challenges - The US-Mexico-Canada trade agreement is set for review in 2026, potentially causing disagreements [6] - US President-elect Donald Trump has threatened a 25% tariff on Mexican goods due to immigration and drug trafficking concerns [4] - Trump's policies favor "reshoring" jobs and factories back to the US, contrasting with Mexico's "nearshoring" strategy [8] Environmental Considerations - Data centers face scrutiny for high energy consumption and water usage in cooling systems [11] - Amazon aims to make all its data centers "water-positive" by 2030, conserving more water than they use [11] Competitive Landscape - AWS's main competitors in cloud computing are Microsoft and Google, which also plan to build a data center in Queretaro [9]