Mexico Strengthens Digital Hub Amid Video Game Tax Debate

Mexico is emerging as a regional digital and industrial hub, with infrastructure, regulation, and innovation converging. Arelion’s new fiber route strengthens the country’s AI and cloud backbone, while IDB Invest and Nokia’s US$50 million facility boost connectivity across Latin America. At the same time, regulatory tensions rise as the proposed 8% tax on violent video games sparks debate over innovation and creative industries. Meanwhile, Sensolus’ IoT expansion and Aquatech Mexico’s focus on advanced water technology highlight how industrial digitalization is improving efficiency across key sectors.

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Mexico Could be a Hub for Advanced Water Technology

The latest edition of Aquatech Mexico solidified the country’s position as a strategic market for water technology in Latin America. The event highlighted a growing demand for advanced solutions from key industrial sectors, which are driving the adoption of processes such as desalination and reuse to optimize water resource management.

Arelion Expands Queretaro-Monterrey Fiber Route for AI Growth

Arelion is launching a second fully diverse dense wavelength-division multiplexing (DWDM) route connecting Queretaro and Monterrey, strengthening Mexico’s position as a regional hub for AI, cloud computing, and digital transformation.

Sensolus Expands NextGen IoT Tracking Across North America

Sensolus, a global leader in industrial-grade IoT tracking solutions, has announced the launch of its NextGen tracking hardware, asset-tracking platform, and mobile app across the United States, Canada, and Mexico.

“The TRACK 1105 builds off more than 10 years of R&D and is a key enabler to digitize supply chains. We look forward to partnering with leading companies in the United States and now Canada and Mexico, including supporting cross-border use cases,” says Steve Logue, General Manager, Sensolus.

IDB Invest, Nokia Launch US$50 Million Facility for Connectivity

IDB Invest has partnered with Nokia to launch a US$50 million financing facility designed to accelerate digital connectivity across Latin America and the Caribbean. The initiative will allow Nokia to provide flexible payment terms to communication service providers, enabling faster investments in secure, high-performance network infrastructure.

Small Studios at Risk in Mexico’s 8% Violent Game Tax Plan

Mexico’s Ministry of Finance and Public Credit has proposed an 8% Special Tax on Production and Services (IEPS) on video games with violent content as part of the 2026 Economic Package. The measure would apply to titles rated for mature audiences, aiming to discourage consumption among young people and generate funds to cover associated public health costs. The government projects the measure could raise MX$183 million (US$9.8 million) in its first year.