Mexico’s AI Growth Hinges on Infrastructure Gap

In Mexico, Foxconn is committing US$168 million to expand AI server production, while Puebla positions itself as a new hub for semiconductors and advanced manufacturing. Yet, experts warn that without significant investment in power generation and connectivity, Mexico risks falling short of its data center capacity targets. 

In international news, China is ramping up efforts to triple its AI chip output by 2025 to counter US export curbs, while Google pushes for sustainability with new methodologies to measure AI’s carbon and energy footprint. 

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Mexico

Foxconn Invests US$168 Million to Expand AI Server Production

Taiwan-based Hon Hai Precision Industry Co., better known as Foxconn, announced a US$168 million investment in its Mexican subsidiary as part of a global expansion oriented toward AI server production. The investment, made through one of Foxconn’s Singapore-based affiliates, will increase its stake in FII AMC Mexico, the company said in a filing to the Taiwan Stock Exchange.

Data Center Growth Needs More Generation Capacity

Mexico needs to build enough electricity and connectivity infrastructure to achieve 1.5GW of installed capacity by 2030, which will allow it to take advantage of its data center investment potential, according to Adriana Rivera, Executive Director, Mexican Data Center Association (MEXDC).

Puebla Emerges as Semiconductor, AI Hub

Puebla is positioning itself as a national hub for semiconductors, AI, and advanced manufacturing, with more than MX$2.1 billion (US$125 million) in committed investments, according to Mexico’s Minister of Economy Marcelo Ebrard. Puebla’s Development Hub has secured projects expected to generate 5,150 direct and indirect jobs through the participation of domestic and international companies in strategic industries.

International

China to Triple AI Chip Output by 2025 Amid US Export Curbs

China's leading semiconductor manufacturers are initiating a strategic expansion to triple the nation's output of AI processors as a direct response to the escalating trade tensions and US export controls, reports the Financial Times (FT). The objective is to secure technological self-sufficiency and fill the market void created by restricted access to top-tier processors from global industry leaders.

Google Releases AI Energy, Carbon Measurement Methodology

Google has released a comprehensive methodology to measure the energy, water, and carbon emissions of its AI models, aiming to improve efficiency and reduce environmental impact. The initiative addresses the growing energy demands of AI, which is increasingly applied in fields such as medicine, energy, autonomous systems, and quantum computing.