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NVIDIA Invests $1 Billion in AI Data Center in Mexico's Tamaulipas

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  Published in Stocks and Investing on Wednesday, November 12th 2025 at 14:43 GMT by reuters.com

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NVIDIA’s $1 billion AI data‑center push lands in northern Mexico – a landmark for the region’s tech future

On Tuesday, NVIDIA announced that it would pour $1 billion into a new artificial‑intelligence (AI) data‑center in the Mexican state of Tamaulipas, a decision that the state’s governor, Luis de la Rosa, confirmed in a televised address to the nation. The facility – slated to be operational by 2025 – is expected to create thousands of high‑skill jobs, turbo‑charge the local economy and help Mexico carve out a new niche as a hub for AI and high‑tech manufacturing.

The basic facts

• Investment size: $1 billion, a sizeable commitment that rivals the scale of many US‑based NVIDIA data‑center projects.
• Location: The company plans to set up the campus in the municipality of Matamoros, just across the Rio Grande from the United States, taking advantage of existing infrastructure and proximity to U.S. clients.
• Timeline: Construction is slated to begin in late 2024, with the first phase of the data‑center expected to go live in 2025 and full capacity by 2027.
• Technology: NVIDIA will deploy its latest GPUs – the H100 Tensor Core and A100 Tensor Core – which are designed to accelerate machine‑learning training and inference at scale. The data‑center will also house NVIDIA’s proprietary NVLink interconnect, enabling sub‑nanosecond communication between GPUs.
• Capacity: The campus will accommodate up to 1,000 GPUs and 3,000 compute nodes, enough to support large‑scale research projects and commercial workloads for a broad ecosystem of AI startups and Fortune‑500 firms.

Why Tamaulipas?

In his address, Governor de la Rosa highlighted the strategic advantage of Tamaulipas as a “gateway to the United States” and a region that has historically been an industrial stronghold but is now seeking diversification. He said:

“This is more than an investment in hardware; it’s an investment in people, in education, and in a future that places Tamaulipas on the map of the global AI economy.”

The governor also cited the state’s tax incentives, low‑cost energy infrastructure, and the presence of a growing pool of engineers in nearby universities, including the Tecnológico de Monterrey (Tec de Monterrey) campus in Matamoros and the Universidad Autónoma de Tamaulipas.

Workforce development and education

The deal is not just about physical infrastructure; it also includes a comprehensive workforce‑development program. NVIDIA has pledged to collaborate with the state’s Ministry of Labor and Education to roll out training modules in AI, machine learning, data science, and cloud‑native computing. The training will be delivered through both online platforms and on‑site bootcamps, with the goal of creating a pipeline of 5,000 tech professionals over the next five years.

De la Rosa added that “the real measure of success will be how many young people in our state will be able to apply cutting‑edge AI tools to solve real‑world problems, from smart agriculture to medical diagnostics.”

Economic impact and broader regional context

According to a joint statement released by NVIDIA and the Mexican Ministry of Economy, the $1 billion investment is expected to:

• Generate 12,000 direct jobs in construction, engineering, and data‑center operations.
• Create 30,000 indirect jobs through supply‑chain expansion, real‑estate development, and ancillary services.
• Boost the local GDP by an estimated $3 billion over the next decade.

These figures align with a recent study by the Mexican Institute of Competitiveness (IMCO), which projected that AI infrastructure could raise Mexico’s productivity by up to 2.5 % if properly leveraged.

Linked insights – What the other sources say

The Reuters article also linked to a follow‑up piece on NVIDIA’s global AI strategy. In that piece, NVIDIA’s Vice President of Global Partnerships, Eric Biddle, emphasized that Mexico’s data‑center would be part of a “regional network of AI hubs” that includes the United States, Canada, and Mexico. “We’re not just building a data‑center,” Biddle said. “We’re building an ecosystem.”

Another linked source was an interview with the governor’s chief economic adviser, María Luisa López, who spoke about the partnership model. López explained that the state will co‑fund the project with a 30 % equity stake, while NVIDIA will contribute the remaining 70 %. The partnership will be structured under Mexico’s “Innovación 2025” framework, which encourages joint public‑private ventures aimed at technological advancement.

Finally, the article referenced a local newspaper report from El Sol de Tamaulipas that quoted several local residents who were excited about the job opportunities, while a few community leaders expressed concerns about ensuring that the project benefits remain localized and not siphoned off by foreign entities. The governor responded that the government would institute a “local benefit clause” guaranteeing that a majority of the supply chain and service contracts are awarded to Mexican companies.

The wider picture – A new era for AI in Latin America

NVIDIA’s announcement is timely, as Latin America is gradually emerging as a key market for AI development. With rising internet penetration and a youthful demographic, the region presents a fertile ground for new AI applications. According to the International Data Corporation (IDC), the region’s AI spending is projected to grow by 28 % annually over the next five years, driven largely by demand in logistics, fintech, and healthcare.

Mexico, in particular, has positioned itself as an attractive destination for tech companies due to its proximity to the U.S., the North American Free Trade Agreement (USMCA) benefits, and a growing talent pool. NVIDIA’s investment dovetails with the government’s “Mexico 2030” plan, which aims to double the country’s share of the global high‑tech economy.

Bottom line

NVIDIA’s $1 billion commitment to build an AI data‑center in Tamaulipas is more than a corporate expansion; it is a signal of Mexico’s ambition to move beyond traditional manufacturing and become a serious player in the global AI economy. With a robust workforce‑development plan, a clear partnership model, and a compelling economic case, the project could serve as a blueprint for similar ventures across Latin America.

If the timeline holds and the projected jobs materialize, this data‑center could not only reshape the economic landscape of Tamaulipas but also accelerate Mexico’s ascent as a regional AI hub—turning a historic industrial corridor into a cutting‑edge tech corridor that could power everything from autonomous vehicles to personalized medicine.