Balancing digital growth with environmental sustainability

Mexico is facing one of its most severe droughts in decades, yet a surprising new industry is booming in the middle of this crisis. Data centres, the backbone of the digital economy, are multiplying rapidly across the country, driven by growing demand for cloud services, artificial intelligence, and global connectivity. These facilities require vast amounts of water to cool their servers, creating growing concerns about their impact on already scarce resources in drought hit regions.

The arrival of global technology companies has transformed parts of Mexico into emerging digital hubs. Cities such as Querétaro and Monterrey are attracting billions of dollars in investment as companies race to build large scale data facilities. Mexico’s geographic position, close to the United States and with growing internet usage at home, makes it an attractive market. But the expansion comes at a time when local communities are struggling with severe water shortages. Reservoirs are drying up, agricultural areas are under stress, and millions of people face restricted water supplies.

The core issue lies in the water intensive nature of data centres. To prevent overheating, massive amounts of water are used in cooling systems, often competing with the needs of residents and farmers. Critics argue that placing these facilities in drought hit areas is irresponsible, as it prioritises digital growth over human necessity. Environmental groups and community leaders have begun voicing their concerns, warning that the boom could worsen social tensions if water continues to run short.

Technology companies, however, have defended their investments. Many firms highlight ongoing efforts to reduce water usage through advanced cooling technologies, recycling systems, and commitments to renewable energy. Some companies argue that data centres are essential for Mexico’s long term economic growth, as they bring jobs, infrastructure, and digital services that benefit both businesses and consumers. Government officials have also pointed out that attracting this industry positions Mexico as a regional leader in digital transformation, though they acknowledge the need for stricter regulations on water use.

The debate reflects a wider global challenge. As demand for cloud computing and artificial intelligence grows, data centres are expanding rapidly in many countries, often colliding with environmental concerns. Mexico’s case highlights how digital infrastructure, while critical for modern economies, can also create new pressures on natural resources. Without careful planning, the benefits of digital growth risk being overshadowed by social and ecological costs.

Looking forward, experts suggest that Mexico must balance digital expansion with sustainable practices. This could include stricter environmental regulations, mandatory investment in water saving technologies, and closer cooperation between companies, communities, and government agencies. If these measures are not taken, the boom in thirsty data centres may deepen the drought crisis, leaving both the digital economy and local populations vulnerable. For Mexico, the challenge is clear: to ensure that the future of technology does not come at the expense of its most vital resource.