AWS CEO: Why $5B Mexico Investment Will Boost Cloud Capabilities

The world’s largest cloud company is expanding its cloud and customer reach by investing $5 billion in Mexico. Here’s what CEO Adam Selipsky has to say about the investment.

CEO Adam Selipsky continues to expand his cloud company’s global footprint by unveiling on Monday AWS’ plan to pour $5 billion into Mexico to enhance its cloud services and capacities in the region.

“This Region will give developers, startups, enterprises, and other organizations more choice to run workloads and serve end users with lower latency, while meeting data residency preferences and requirements,” AWS CEO Selipsky said on social media today.

The Seattle-based cloud market share leader will launch a new AWS Region in Mexico to give customers the ability to run workloads and store data that must remain in-country.

“This is part of a $5B investment in Mexico, and builds on our long-term commitment to provide customers in Latin America with the most advanced and secure cloud technologies,” said Selipsky.

AWS, which made CRN’s 2024 Data Center 50 list, is the largest cloud computing company in the world with roughly 32 percent global share of the cloud infrastructure services market. AWS’ current run rate is a record $97 billion as of fourth quarter 2023.

AWS’ Cloud Plans For Mexico

Selipsky said AWS will build three Availability Zones in the region that will be connected to each other by low-latency network connections over dedicated fiber.

Since 2020, AWS has launched seven Amazon CloudFront edge locations in Mexico. That same year, AWS launched AWS Outposts in the country, which delivers AWS infrastructure and services to any one-premise or edge location.

Last year, the company launched AWS Local Zones in Queretaro, Mexico, while also creating an AWS Direct Connect location that allowed customers to have private connectivity between AWS and their environment.

The new AWS Region in Mexico is slated to open in early 2025.

AWS’ Global Cloud Expansion Plans

With the addition of Mexico, AWS now has five new Cloud Regions in the works as well as 15 upcoming new Availability Zones.

AWS is currently working on new Cloud Regions in Germany, Malasia, New Zealand and Thailand.

AWS Cloud Regions are typically large data centers full of servers, storage and networking infrastructure that power AWS’ cloud services and solutions. Through its Regions, AWS can offer over 200 cloud services.

As of 2024, AWS Regions spans 105 Availability Zones within 33 geographic regions across the world, serving 245 countries and territories.