Queretaro's Data Center Boom Sparks Environmental Concerns

Queretaro, Mexico is experiencing a rapid increase in data centers as the state relaxes environmental regulations and tax obligations to attract big tech companies. Experts and residents express concerns about transparency, water usage, and potential environmental impact amid existing drought conditions.

The central Mexican state of Queretaro is witnessing a surge in data centers, thanks to eased regulations and tax exemptions for foreign tech giants. The Queretaro government allows these facilities to bypass environmental impact reports and waive CO2 taxes, raising concerns among experts and residents over the state's water-scar city issues.

Data centers, burdened by hefty energy and water demands, primarily house servers for tech behemoths like Microsoft and Google. Located mainly in industrial parks, these centers escape environmental scrutiny, despite significant consumption threatening the drought-afflicted region. Experts demand more transparency and regulatory oversight to protect local communities.

Queretaro's efforts to lure tech investments have already amassed $12 billion, with major players planning further expansion. As water shortages plague the area, experts emphasize the importance of environmental disclosures for these centers, urging authorities to re-evaluate the environmental exemption policies in light of potential impacts on resources and local populations.

(With inputs from agencies.)