Nvidia to invest $1 billion in Nuevo León for green AI data center

Global chipmaker Nvidia will partner with local operators to build a $1 billion green data centre in Nuevo León, Mexico — a strategic move to expand AI infrastructure in Latin America.

Nvidia will invest $1 billion to build a green data centre focused on artificial intelligence in the northern Mexican state of Nuevo León, Governor Samuel García announced in a video message on social media. The move marks one of the largest single AI infrastructure commitments to Mexico to date and underlines Nvidia’s accelerating investment strategy in Latin America.

Announcing the project, Governor Samuel García said, “Este miércoles viene a Nuevo León la empresa más importante del mundo a poner su fábrica.” (“This Wednesday, the world’s most important company is coming to Nuevo León to set up its factory.”)

The statement reflects the state’s growing appeal to global tech giants seeking to establish a strong foothold in Latin America.

Local media reports indicate that the investment will be carried out through a partnership between Nvidia and regional data-centre operators, with a focus on renewable energy and energy-efficient operations. García confirmed that “esta mega inversión lo estará haciendo a través de una empresa vinculada a D1 Green Data Centers.” (“This mega-investment will be made through a company linked to D1 Green Data Centers.”)

Nvidia’s $1 billion commitment will serve multiple strategic aims – securing regional proximity for hyperscale AI customers, diversifying global data-centre footprints beyond the U.S. and Europe, and bolstering Mexico’s ambition to become an AI and cloud hub for Latin America. For Nuevo León, an industrial and technology powerhouse anchored by Monterrey, the project promises to create high‑skilled jobs, attract global partners, and strengthen local innovation capacity.

At the recent Mexico IA+ event, Nvidia’s regional leadership described its long-term vision for the country, saying, “The future is not awaited. It is summoned, designed and activated. Intelligence is in motion, investment has direction and Mexico is becoming an architecture of decision.” The remarks underscore Nvidia’s intent to align its infrastructure strategy with Mexico’s AI ambitions.

Officials have not yet released a detailed timeline or the precise location of the facility. However, reports suggest that construction could be executed in multiple phases, scaling up capacity over several years. The project’s “green” emphasis suggests renewable energy sourcing, advanced cooling systems, and energy‑efficient hardware design – features consistent with Nvidia’s sustainability commitments worldwide.

While Nvidia traditionally sells hardware and software rather than managing its own data centres, regional reports suggest the company will collaborate closely with Mexican operators to build and manage the new facility. This partnership model mirrors arrangements in other regions, where Nvidia provides the architecture and systems while local firms handle operations. Industry observers estimate that the project could generate hundreds of construction jobs and dozens of permanent technical positions, alongside growth opportunities for suppliers in construction, electrical, and energy sectors.

One key challenge will be energy demand. AI data centres are highly power‑intensive, and the Nuevo León project’s success will depend on access to reliable renewable energy and upgraded grid infrastructure. Local authorities are expected to coordinate closely with federal energy agencies to facilitate grid expansion and sustainable power sourcing.

Nvidia’s expansion into Mexico fits a broader global strategy of localising infrastructure to reduce latency, improve service delivery, and empower regional AI ecosystems. Latin America, particularly Mexico and Brazil – has become a focal point for such initiatives, as Nvidia deepens collaborations through training programs, public events, and academic partnerships.

Analysts view this investment as a milestone for Mexico’s AI and digital sectors. Beyond the immediate economic impact, the project is expected to catalyse further investment in AI research, local data infrastructure, and skills development. It could also enhance Mexico’s role as a nearshore alternative for U.S. and global AI workloads, diversifying supply chains amid rising global demand for computing power.

If realised as planned, Nvidia’s $1 billion green AI data centre in Nuevo León will stand as one of the largest AI infrastructure investments in Mexico – solidifying the country’s position in the global AI landscape and advancing Nvidia’s mission to expand access to next‑generation computing power across the Americas.

Update: Semiconductor and AI-chip maker Nvidia Corporation publicly denied the reports about its investment of $1 billion to build a data centre Nuevo León, hours after the state’s governor Samuel Garcia announced the deal.


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Hadia Seema - Journalist, LAFFAZ
Hadia Seema

Journalist at LAFFAZ, Hadia Seema possesses a creative flair as a writer and poet. With a passion for research, storytelling, and the dynamic world of startups, she brings a unique perspective to business journalism. Hadia’s work delves into themes of beauty, identity, and self-expression, blending her love for language and the arts with her expertise in the startup ecosystem. A stalwart in the field, she excels at transforming complex business news into skimmable engaging content that resonates with readers of all levels.

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