Mexico’s Industry Slips as AI Data Center Boom Faces Strains

This week in infrastructure news, industrial activity posted another decline, with construction weighing down September’s results. Meanwhile, Mexico’s AI-driven data center boom continues to accelerate, though a new report warns of mounting energy and supply chain pressures.

Rail development advanced on two fronts: the federal government moved forward on the Tren del Norte right-of-way and officially launched construction of the Arroyo El Sauz–Nuevo Laredo segment of the Gulf of Mexico Passenger Train.

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Construction Sector Falls 7.2% in September 2025

Mexico’s industrial activity declined again in September 2025, with a 0.4% monthly drop and a 3.3% annual contraction. Construction led the downturn, dragged by sharp decreases in civil engineering and edification, while mining and energy sectors also posted annual declines. The only area showing growth was specialized construction works.

Mexico’s AI Data Center Boom Faces Energy, Supply Challenges

Mexico is emerging as a key hub for AI-driven data center growth, but a new Turner & Townsend report warns that rising AI workloads are straining supply chains and energy capacity. As Queretaro leads the country’s expansion, developers face rising costs, cooling technology gaps, and power-access challenges that must be addressed to sustain competitiveness.

Mexico, Nuevo Leon Advance Right-of-Way for Tren del Norte

Mexico advanced the Tren del Norte project as federal, state, and municipal authorities signed an agreement to secure the right-of-way for its first 396km segment. With 71% of land already released and all sections tendered, the 1,200km passenger rail aims to boost mobility, connect northern states, and support economic growth along the U.S. border.

Mexico Begins Construction of Arroyo El Sauz–Nuevo Laredo Rail

Mexico has begun construction on the 136km Arroyo El Sauz-Nuevo Laredo section of the Gulf of Mexico Passenger Train, a key phase of the Saltillo-Nuevo Laredo corridor. The project will deliver three stations, faster regional travel, and thousands of jobs, strengthening northern connectivity and advancing the federal passenger rail expansion strategy.

Nuevo Leon Begins Construction of Interserrana Highway Section II

Nuevo León secured federal environmental permits to begin building Section II of the Interserrana Highway, a nearly 40km stretch through the Sierra Madre. With Sections I and III already underway, the project will add tunnels and bridges to boost regional mobility, reduce travel times, and strengthen the state’s connectivity and competitiveness.

Banobras Opens Tepic–Compostela Highway in Western Mexico

Mexico inaugurated the 26km Tepic–Compostela highway, a MX$4.21 billion Banobras-led project designed to boost connectivity and economic development in Nayarit. Built under the CMRO model, the new route cuts travel times in half, adds major bridges and tunnels, and strengthens a key corridor linking Nayarit and Jalisco.

Queretaro Presents Low-Impact, Energy-Efficient Housing Plan

Queretaro unveiled a sustainable housing prototype aimed at proving that low-impact, affordable homes are feasible. The model integrates gas-free systems, smart lighting, water reuse, and energy-efficient technologies to cut emissions and reduce utility dependence, advancing local solutions for environmental and social challenges.