WTF?! It's no secret that data centers require a huge amount of power – more so since the advent of generative AI – and that's causing issues in some countries. In Mexico, one of Microsoft's data centers was forced to run on gas generators for at least part of the year as it was unable to connect to the national energy grid.
There are 150 data centers in Mexico from the likes of Microsoft, Amazon Web Services, and Google. According to Rest of the World, one of these facilities was set up by Microsoft in the industrial hub of Colón last year, but it was unable to plug into the national grid due to what the company blamed on long construction times required in its contract with the Federal Electricity Commission.
Microsoft said it will be able to connect to the grid in mid-2027. Until then, it has been given permission from the country's government to use seven gas generators to power the data center.
The Redmond firm declined to say how it is currently powering its data centers in Mexico and if it will continue to use generators.
Microsoft, Amazon, and Google have collectively invested over $7 billion in Mexico since 2020. And while this is creating jobs and economic growth, there's a high cost: the facilities require extra energy and water. In drought-prone areas where the electric grid experiences blackouts in summer months, there are questions over where this water will come from. Microsoft previously said the three data centres it operates in Querétaro use 40 million liters of water per year. Google, meanwhile, said its total global water consumption increased by 28% to 8.1 billion gallons between 2023 and 2024.
As for the power consumption, there are now 160MW of capacity in data centres in Querétaro – a conservative estimate. The Mexican Association of Data Centres estimates the pipeline of projects amounts to 600 megawatts (MW) of installed capacity, reports The Guardian.
According to the Mexican Institute for Competitiveness research center, Mexico's power grid faces a deficit of 48,000 megawatt-hours by 2030, which is more than half the country's output in 2023.
It's not just Mexico feeling the strain. The US is also being pushed to its limits, and companies are warning that utility bills will rise in several states as a result of low supply and high demand.
In the UK, the government last month urged Brits to delete their old emails and pictures to save water during the country's driest spell since 1976. Nvidia has just announced a $30 billion investment in the UK, meaning even more strain on the water and power supplies.
Microsoft turns to gas generators to keep Mexico data center running
