Amazon’s AWS to invest over $5 billion to boost cloud computing in Mexico

MEXICO CITY : Amazon Web Companies and products Mexico (AWS), a unit of Amazon.com Inc, provided on Monday this might perchance occasionally invest over $5 billion to originate a cluster of files products and companies in Mexico, amid rising ask for cloud products and companies as extra firms adopt unique applied sciences.

The cluster might perchance be built within the Mexican converse of Queretaro, Ruben Mugartegui, head of Amazon Web Companies and products Mexico unit, instantaneous Reuters in an interview, including the funding might perchance be spread thru the subsequent 15 years.

The corporate has been working on this project for added than five years, Mugartegui said.

AWS currently serves clients equivalent to Mexican theater operator Cinepolis, inventory trade BIVA, airline Aeromexico, and native governments.

Cloud computing helps firms get entry to expertise products and companies equivalent to storage and databases thru the web, ending the want to enjoy and withhold physical files products and companies and servers. Companies can cut expertise costs by around 20 per cent when they affirm AWS, Mugartegui said, citing a look.

Amazon has invested over 52 billion pesos ($3.04 billion) in Mexico since its arrival to the nation in 2015.

The unique funding comes within the center of so-known as nearshoring, the trend of firms relocating firms from Asia nearer to the US following disruptions in provide chains precipitated by the COVID-19 pandemic.

The Mexican authorities has aimed to lure firms to invest within the nation with initiatives equivalent to a decree issued final twelve months granting tax incentives for firms desirous to pass operations to Mexico.

Mugartegui declined to claim if Amazon obtained any fiscal benefits, but worthy the company has labored carefully and effectively with the authorities and that firms relocating to Mexico are among the many candidates to change into unique clients.

Carmaker Tesla provided final twelve months this might perchance occasionally create a factory in Mexico. Local authorities permitted $153 million in incentives for Tesla and accept as true with said its funding will stand at over $5 billion.

($1 = 17.1265 Mexican pesos)