Real Wages, Working Hours, Benefits, and Labor Conditions in Mexico vs. The United States, Spain, and Other OECD Countries

Maquiladora work is an economic engine behind global manufacturing supply chains. Multinational firms manufacture products at scale and at low enough costs to satisfy investors and shareholders worldwide. Wages, working hours, and labor protections for maquila operators, however, differ from country to country in significant and consequential ways. This brief guide compares and explains how much maquila operators are paid, how many hours they work, and why there is a structural wage gap between Mexico and developed economies today.

Mexico’s National Institute of Statistics and Geography (INEGI), the OECD, and international labor agencies all show maquila operators in Mexico earn far less, work more hours, and have fewer protections than in the U.S. or Europe. What Is a Maquila Operator?

A maquila operator is a factory worker who performs repetitive tasks on a production line or within export processing facilities. The work is common to the following industrial sectors:

• Automotive manufacturing
• Electronics
• Medical devices
• Textile and garment manufacturing
• Auto parts and components

Typical duties include operating equipment, assembling parts, visual inspection of components, packaging of finished products, and performing basic quality control and assurance checks. Maquila work is not considered highly skilled. Labor force participation rates are high, but there is a structural difference in wages between skilled and unskilled labor, and this divide has an outsized impact on maquiladoras in Mexico.

How Much Does a Maquila Operator in Mexico Earn in 2025?

The average maquila operator in Mexico in 2025 makes between:

• MXN $7,500 and $11,000 per month, depending on the region and industry
• MXN $42 to $65 estimated hourly pay
• 48-hour work week
• Overtime (night or rotating shifts) is common.

INEGI’s publicly available data also shows that over 60% of maquila workers are still making one to two minimum wages, even within top export-driven industries like automotive and electronics. After decades of productivity gains and export record-breaking years, wages in Mexican maquiladoras have not kept pace with international averages.

Mexico vs. OECD Countries International Comparison

The United States

• USD $2,800 to $3,800 per month
• USD $16–22 per hour
• 40-hour standard work week
• Access to employer-sponsored health insurance, paid vacation, paid overtime, and legal protections against unsafe working conditions

Labor unions in the U.S. have less of a presence within export-oriented industries than in Spain, but manufacturing operators often do the same work as in Mexico for many more dollars.

Spain

• EUR €1,400–€1,800 per month
• EUR €9–12 per hour
• 40-hour legal work week
• Production work is often protected by strong collective bargaining agreements with a robust union presence and extensive worker protections under EU labor standards.

Labor standards enforced by the EU and the Spanish state, such as working hour caps, paid leave, sick time, and severance, often result in overall lower wages but significantly better social and health outcomes for workers.

OECD Average

• USD $15–20 per industrial hour worked
• Shorter working hours and a higher level of automation in the most advanced manufacturing nations
• Lower labor turnover rates result in less precarious working conditions and better job stability

As an important global manufacturing hub, Mexico is among the lowest-paid industrial labor markets within the OECD. The low-cost labor environment, which has attracted enormous foreign investment over the past several decades, has made it difficult for wages in maquiladoras in Mexico to improve significantly.

Working Hours and Conditions

In Mexico’s maquila plants:

• Shifts can last from 8 to 12 hours or more.
• Night work and rotating schedules are common.
• Production rhythms can be very intense, especially as export deadlines approach.
• Worker turnover can be high, and there is significant physical demand on workers.

OECD countries enforce strict limits on overtime and short daily work hours, and mandate that employers respect ergonomic standards and safe working conditions. These fundamental differences in working conditions not only lead to higher wages in other countries but also to better long-term health for workers.

Benefits and Social Protections: Mexico and the OECD

In Mexico

• Mandatory IMSS (Social Security) enrollment, with limited benefits and coverage
• Legally required vacation days are minimal, and most workers are not provided with any vacation at all
• Productivity and results-based bonuses are not mandated or guaranteed
• Unions are not strong across the board, and in some export plants, they have very little bargaining power

In OECD Countries

• Health insurance, often covering the whole family, is standard and legally mandated
• Paid parental and sick leave are often provided.
• Collective bargaining is strong, and legal protections exist against arbitrary dismissal and other unfair labor practices.

It is not only wages that matter, but also the overall quality of employment that maquiladoras in Mexico offer compared to other developed countries.

Why Is There a Wage Gap?

Labor economists point out four major structural factors behind the sustained wage gap:

1. An economic development model built around low labor costs to attract foreign investment
2. Weak and fragmented union representation
3. Competition among developing countries for international manufacturing contracts
4. Less strict enforcement of labor law and regulations

Minimum wage increases in recent years have helped to improve the baseline incomes of maquila workers, but have not shifted Mexico’s underlying position within the global manufacturing value chain.

Can Wages Improve for Maquila Operators?

There is a broad consensus among labor experts, economists, and stakeholders that there are steps the Mexican government and private sector can take to improve wages for maquila operators. These include:

• Salary increases linked to productivity increases
• Stronger labor inspections and enforcement
• Real union empowerment
• Transition toward higher value-added manufacturing

Without significant changes across all areas, maquiladoras in Mexico will continue to be attractive to foreign investors for their low labor costs, not because of their commitment to workers or long-term income mobility.

Conclusion

Maquila operators in Mexico are an essential part of global production chains, and yet they earn less than what factory workers make in the United States, Spain, and other OECD countries. The gap is not the result of worker effort or skill level, but is the product of economic and regulatory choices. So long as this status quo remains unchanged, Mexico’s maquila sector will continue to focus on cost-driven competitiveness rather than shared prosperity for the workers who keep factories operational.

New Foreign Investment Signals Sector Growth

The Paraguayan auto parts segment is poised for growth with new investment from India’s Motherson Group. Paraguay is witnessing a renaissance in the auto parts industry that is taking shape through both Paraguayan and foreign investment. The news that the Indian multinational company Motherson Group is preparing to invest USD 15 million in Paraguay was recently announced. In addition, over the last few years, the auto parts segment has been one of the few industries to steadily expand. The establishment of new companies has not only increased dynamism in the sector but has also contributed to diversification in the maquila sector in Paraguay, highlighting its potential as a competitive destination for high-value manufacturing and export-oriented production.

Export Performance and Industry Composition

The National Council of Export Industries (CNIME) reports that the Paraguayan auto parts sector is represented by 10 companies under the maquila regime, producing various components, including electrical harnesses, leather seats, valve covers, radiator caps, and articulated impact-absorption systems. From January to October 2025, the sector’s exports reached USD 362 million, marking a 55% increase since 2023, said Diego Peyrat, Dispatch Manager of CNIME. Peyrat points out that Paraguay’s auto parts maquilas are still a relatively small portion of the entire industry, which in 2025 had over 400 companies. Nevertheless, the numbers show growth and an increasing presence of these higher-value components in the overall mix of Paraguay’s industry.

Sustained Growth and Positive Outlook

Paraguay’s auto parts sector has experienced remarkable growth over the past three years. “We have recorded spectacular growth in this segment in the last three years. Between the beginning of 2025 and October, this has been one of Paraguay’s biggest years and has already registered exports worth USD 362 million. We are witnessing a very interesting pace of growth. The forecast for 2026 is also very positive, with the sector again likely to break records,” Peyrat said to La Nación/Nación Media.

Motherson Group and the Ripple Effect of Investment

The growing confidence of international investors is reflected in the entry of India’s Motherson Group into the country. Although still little is known about the operation of the Indian company, Peyrat assures that this new investment will have a ripple effect in the Paraguayan industry, attracting new international companies. In this case, it is about the auto parts sector, but there will likely be many other firms that also come to invest in Paraguay in 2026 and beyond. “The first companies to enter saw the potential, and we now have the confidence of other companies from abroad, and I think we will also see that with the auto parts sector,” said Peyrat.

Maquila Projects and Sector Diversification

In 2025, Paraguay approved 22 maquila projects, while another seven are under analysis. These projects are spread out over a number of industries, including clothing manufacturing, furniture assembly, and food production. Companies in clothing manufacturing and services are still the most common, even as there is a clear intent to push more diversity in the types of companies that make up the maquila sector in Paraguay.

Move Toward Higher Value-Added Components

Diversification is one of the main topics in the development of the auto parts sector. As one of the largest by volume produced in the maquila regime in Paraguay, wiring harnesses and electrical parts, in particular, are the most common. Nevertheless, an increasing number of companies are seeking to expand into other, more sophisticated components with higher added value. This strengthens the competitiveness of the sector, increasing its international positioning and contributing to its long-term sustainability.

Employment Growth and Regional Concentration

Motherson’s decision to enter the country is expected to expand that dynamic, allowing Paraguayan companies to occupy larger and more strategic portions of global supply chains, not only making the maquila sector in Paraguay more attractive to foreign investors but also increasing export revenues. By October of 2025, the auto parts sector had registered 7,963 direct jobs. In terms of geographic distribution, 91% of approved maquila companies are concentrated in just four Paraguayan regions: Alto Paraná, Central, the capital, and Amambay. Alto Paraná has by far the largest share, with 47% of all firms, due in part to its logistical advantage of being closest to Brazil, the largest market for Paraguayan exports.

Policy Support and Investment Climate

Employment, regional concentration, diversification, increasing export performance, and international investments are just some of the elements shaping the maquila sector in Paraguay. The strong showing by the auto parts sector is the result of a complex interaction between the government’s strategic approach to generating FDI and the support of private sector companies, both foreign and Paraguayan, seeking to take advantage of Paraguay’s business-friendly environment. Paraguay has, for some time, provided strong incentives for export-oriented production and invested in the infrastructure necessary for industrial companies to set up shop and thrive. The entry of Motherson and the approval of various other maquila projects show that Paraguay has positioned itself as a desirable location for such firms.

A Bright Future for the Auto Parts Sector in Paraguay

Looking ahead, the auto parts sector is expected to continue growing and increase its share of the maquila sector in Paraguay. Diversification remains central, as companies expand into higher-value components and projects are approved across multiple industries. Strategic regional placement supports logistical efficiency and proximity to export markets, while new foreign entrants bring advanced technologies and deeper integration into global supply chains. These factors are set to boost exports, generate employment, and stimulate related industries such as logistics, materials supply, and engineering services.

In short, the maquila sector in Paraguay—particularly the auto parts segment—is undergoing expansion and diversification. Motherson Group’s investment, combined with strong export growth and rising employment, underscores the sector’s growing economic importance. With a solid foundation of incentives, infrastructure, and strategic geography, Paraguay is well-positioned to strengthen its role in global manufacturing and export markets in the years ahead.

Foreign direct investment (FDI) in Chile has surpassed initial expectations. According to data from the Central Bank, by October of this year, accumulated foreign direct investment in Chile reached US$12.711 billion. This figure corresponds to an annual increase of 13.6% in the inflow of foreign capital when compared to the same period in 2024. These statistics indicate a robust recovery in foreign direct investment and a sustained upward trend in capital inflows to Chile, thus reinforcing the country’s reputation as a safe, stable, and competitive investment destination.

Committee of Ministers for Foreign Investment highlights strong performance

The above data was discussed and positively assessed during the most recent meeting of the Committee of Ministers for Foreign Investment. This group, which meets on a quarterly basis and  is presided over by the Minister of Economy, Development, and Tourism and the Minister of Energy, Álvaro García, provides a high-level forum for the most relevant authorities in charge of attracting foreign direct investment to Chile.

The previous meeting of the Committee of Ministers for Foreign Investment was convened on Friday, December 11, 2025, and included the participation of top government officials. In addition to the Minister García, the gathering featured the Minister of Foreign Affairs, Alberto Van Klaveren; the Minister of Transport and Telecommunications, Juan Carlos Muñoz; the Undersecretary of Public Works, Danilo Núñez; the Undersecretary of Agriculture, Alan Espinosa; the International Coordinator of the Ministry of Finance, Carola Moreno; and the Acting Director of InvestChile, Juan Pablo Candia.

The latter, Candia, was in charge of the Committee’s most recent session, offering a general overview of the work performed by InvestChile in terms of FDI over the last four years. He also provided an update on the agency’s pipeline of projects moving forward through 2026. In his presentation, Candia not only highlighted Chile’s quantitative achievements in this regard but also emphasized the qualitative evolution of Chile’s investment promotion strategy. This includes greater attention being paid to regionalization and the diversification of targeted sectors.

Outperforming the Target by a Wide Margin

“In the foreign direct investment results we are seeing a very clear sign of confidence in Chile. We set ourselves a goal of US$17 billion in FDI for the 2023–2026 period, and today we can say that this figure has been very widely surpassed, as we have reached 137% of that, with more than US$23 billion in committed investment. It is a good moment to reaffirm that Chile is an attractive destination, with clear rules, with institutional stability, with an active investment promotion policy”, asserted García.

This outcome, it is important to highlight, is the product of a favorable comparison with global trends that have limited investment flows elsewhere. In other words, FDI in Chile is a relative bright spot in the current international economic scenario. Chile has been able to outperform global averages despite being heavily affected by high uncertainty, tight financial conditions, and geopolitical risks. This positive anomaly has been attributed to the country’s policy continuity, openness to trade, and deep-rooted commitment to protecting the rights of investors.

Job Creation

The realization of foreign direct investment in Chile has also had a positive impact on the job market. In this regard, official statistics show that the materialization of the aforementioned investments has enabled the creation of 8,300 permanent jobs. This number surpasses the Council of Ministers target of 7,000 jobs by 117% for the 2023–2026 period. This, for its part, has not been a matter of chance, according to the Minister García.

“This performance is not random. It is the result of the sustained work of InvestChile and the Committee of Ministers, which has defined a modern strategy, with a very strong international presence, and with a robust focus on regionalization. Today we are seeing how foreign investment not only grows, but also creates jobs, is decentralized, and strengthens strategic sectors such as mining and energy. That way it is making an important contribution to the productive development of the country and to its energy transition,” he stressed.

Outperforming World Averages

One of the key points in Candia’s presentation centered on how FDI in Chile has exceeded world averages throughout the 2022–2024 period. This has been the case even though the global context has been marked by great uncertainty and strong headwinds. In fact, statistics on foreign direct investment show a 2.9% average decline in flows at the global level between 2022 and 2024. Chile, for its part, had a positive average growth of 1.4% in direct investment flows over the same period.

The divergence is a demonstration of the relative resilience of foreign direct investment in Chile and, in particular, of investor confidence in the country’s macroeconomic management, its regulatory framework, and its long-term development strategy. Experts have emphasized that Chile’s strong institutions, independent central bank, and well-developed capital markets continue to set the country apart within Latin America.

Central Bank Data and Comparison with Historical Averages

According to Central Bank data, foreign investment flows accumulated through October already total US$12.711 billion. In this regard, Central Bank data show an increase of 13.6% in accumulated foreign direct investment in Chile compared with the same period in 2024. The average net accumulated flows between 2022 and 2025, measured through October, amounted to US$14.604 billion. This amount, in turn, represents a 16.6% increase over the historical average in the 2003–2025 period. This figure, according to historical statistics available in the Central Bank’s Balance of Payments, is US$12.520 billion.

These long-term comparisons, it is worth pointing out, are used to illustrate the fact that current performance is not cyclical in nature. On the contrary, they are part of a broader trend in which FDI in Chile has generally exceeded historical norms in recent years, even as other economies have struggled to return to pre-pandemic levels of investment.

Main Source Countries

Over the past ten years, the countries that have most contributed to the growth of FDI in Chile have been Canada and Italy. The former has shown the most dynamic behavior, displacing the United States from the top spot, and currently totaling more than US$41.84 billion in accumulated investments in Chile. The investment from Italy, in turn, has grown by 36%, moving Italy from 26th to 6th place in the ranking of countries that have invested in Chile the most during the same period.

This diversification of source countries is seen as a positive trend, since it reduces the concentration of FDI in Chile in any single country. In this way, it is an example of how Chile’s network of trade agreements and diplomatic relations with the rest of the world allows it to facilitate investment flows from both traditional partners and emerging economies.

Regionalization and Strategic Sectors

The foreign direct investment registered in Chile has also supported the decentralization of productive activity, with a strong focus on the country’s regions. In this context, different investment projects have served to reinforce development poles in both northern and southern Chile, supporting local economies and helping to break with a historic geographic concentration.

Mining, without a doubt, remains the sector that receives the most foreign investment, thanks to Chile’s position as a global leader in the production of copper and other critical minerals. Energy, meanwhile, has emerged as the most dynamic sector in terms of FDI in Chile over the last few years, driven by initiatives such as renewable energy projects, green hydrogen developments, and infrastructure aligned with the country’s energy transition.

Minister García highlighted the successful implementation of InvestChile’s Regional Strategy. This strategy, as described by the Ministry of Economy, has already enabled the signing of 10 regional agreements, along with other advances in the development of regional value propositions, investment opportunities, and regional coordination tables. All these actions, in the eyes of the authorities, help to strengthen FDI in Chile as a strategic component of growth, regional development, and long-term competitiveness.

Jeff Bezos, founder of Amazon, has visited Peru. This has reopened the debate about the opportunities the country has for major investors. We asked three entrepreneurs and executives about the country’s strengths. They are Alonso Rey, Alfonso Bustamante, and Felipe Ortiz de Zevallos.

One of the world’s richest people and the founder of Amazon landed in Peru last week. Although Jeff Bezos was not on business but rather on vacation, the visit of the North American magnate has been a boon for investment expectations. Bezos enjoyed his visit to the Andean country and was able to tour Lima’s gastronomy, which included, among others, Central, La Perlita, and Mayta, and did a tasting in the Pisco Valley.

Bezos’ arrival is not the first visit by a world-famous technology-related businessman to Peru. In 2016, Mark Zuckerberg did it, and last year, the country received TikTok’s CEO Shou Zi Chew. However, Bezos’ presence has reopened the debate about the opportunities in the country to receive companies as big as the e-commerce colossus. For some time now, Peru has been described as a blessed country, not only for its landscapes and strategic location, but also for having raw materials capable of attracting the largest companies in the world. It is a fact that Peru has investment potential.

Macro Stability and an Untapped Promise

Years ago, Peru was not just a country with investment potential but “the star of the region” due to its high growth rates. Currently, growth is around 3% but inflation is kept within the target range (between 1% and 3%), the currency is solid thanks to the Central Reserve Bank, and fiscal stability has been maintained (although with the risk of a change if populist policies are extended). These fundamentals reinforce the idea that Peru has investment potential that remains underexplored.

In order to better understand these opportunities, this blog post brings together the opinions of three experts who have a very clear vision about the doors that Peru should open in order to be able to attract the largest investors in the world. They are the former president of the Confederation of Private Business Institutions (Confiep), Alfonso Bustamante Canny; the current ComexPerú president, Alonso Rey Bustamante, and Apoyo founder, Felipe Ortiz de Zevallos.

Peru has investment potential in several sectors

In the opinion of Felipe Ortiz de Zevallos, the rise in international metal prices places mining at the center of the country’s investment potential. He highlighted the need to advance with projects such as Michiquillay and La Granja, in Cajamarca, and Zafranal, in Arequipa, which would drive growth in those regions. These projects would focus on copper, whose demand will increase in the world due to the energy transition.

Alfonso Bustamante Canny put the energy sector on the table in connection with the demand that data centers will require. “Artificial intelligence is taking over the agendas of governments and business leaders, but electricity is the bottleneck,” he said. In this regard, he pointed out that Peru has 8,000 megawatts of efficient energy installed, plus 4,000 more in backup mode.

Alonso Rey Bustamante agreed on the potential of mining and energy, and also signaled in agriculture. “We are a world producer of avocado, grapes, blueberries, and cocoa, among others. With the irrigation projects that are underway, we can expand the lands, increase planting, and have more industrial exports,” he said.

What Peru should do to attract the largest investors

Private investment is key to fostering economic growth, job creation, and poverty reduction in Peru. However, to be able to attract the largest companies in the world, reforms are required. The three experts agreed that the State must simplify administrative procedures for investment and business creation. If the legal certainty and stability are not there, capital will go to other markets.

“The State has to be more agile and must run at the same speed as private investment,” said the ComexPerú president. In this sense, he asked for more digitalization, transmission lines, better roads, and access to the internet countrywide. “The country is spending public money in ways that we do not agree with, like keeping inefficient state companies alive, when those same resources could be used to close the infrastructure gaps. We cannot tell Amazon that the construction of a facility in Peru takes four years and 200 procedures”, he added.

Felipe Ortiz de Zevallos warned about political unpredictability as another threat. He referred to the prediction markets in the world, where people do not bet on elections in Peru because there are so many candidates that no one knows what may happen. In his opinion, this political uncertainty makes confidence take a back seat and investment over the long term is undermined.

Alfonso Bustamante said that it is necessary to improve infrastructure but at the same time advance in the reform of the judicial system, which is “unpredictable” and not able to administer justice.

A lack of security and problems with governance

Rising violence has been one of the clearest stains on the country’s investment attractiveness in recent times. Extortion, violent crimes, and illegal mining have become obstacles to growth. On that subject, Alfonso Bustamante warned that extending the Comprehensive Mining Formalization Registry (Reinfo) would be sending a negative signal to formal investors. Instead, he called for tougher requirements that take into account not only the environmental and occupational safety standards.

Alonso Rey said that the State has to deliver four basic services to the population: security, health, education, and justice. “We are not doing well in any of the four, which is not the case with the countries with which we compete: Argentina, Bolivia, Ecuador, and Chile,” he said. “They are also after the foreign investment we are looking for,” he added.

Felipe Ortiz de Zevallos agreed that public security should be a basic task of the State and that fighting corruption is also essential. The businessman explained that high-profile visitors like Bezos require large security contingents in Peru, which they would not need in Costa Rica or Uruguay. “We are world champions in the culinary arts, we have some bad spots on security and on integrity. On the other hand, there are very good signals: we have been the ones who have advanced the most in the construction of roads in the last decade,” he said.

The key role of the Port of Chancay

The announcement of the Port of Chancay has placed Peru once again in the international spotlight. “It is the great central piece that will strengthen the country’s infrastructure base, and with that, we should take advantage,” said Ortiz de Zevallos. Alonso Rey said that to be able to take full advantage of it, roads with fast access times and a proactive attitude in the search for investment are needed. Alfonso Bustamante added that it is necessary to eliminate logistical bottlenecks around the port for the project to have a significant impact.

What about the Peruvian investment potential?

Felipe Ortiz de Zevallos summarized that a country can attract investment, not by the size of the companies that can arrive, but by the size of its market, stability and governance, infrastructure, talent, how easy it is to do business, or the incentives. “The situation is good in terms of macroeconomic stability, which is extraordinary for Peru, but we have challenges that are not being fully addressed, such as the informal economy, the inefficient State, and the sometimes sluggish bureaucracy,” he said.

Alonso Rey Bustamante was categorical that in Peru, the State has not shown the required willingness to support private investment and saw an opportunity in data centers with renewable energies. “If we have the energy, we should have the containers in place for the data centers; we have the place. The call is to a bit of deregulation, to eliminate some absurdly expensive and unproductive public holidays that close production for four days a year, do not generate tax revenue, but take away productivity,” he added.

Alfonso Bustamante Canny concluded, saying that Peru has investment potential that is extraordinary, and which nobody in the world has. “I don’t know any country that has as many possibilities as Peru. It’s a shame that this has been wasted because of some ineptitude,” he said.

In Mexico, technology continues to arrive with force—and this time, it’s no joke. British investment firm Actis has just announced a major commitment: US$1.5 billion to build large-scale data centers across three Latin American countries. Mexico has earned a prominent place on that list. This move further strengthens the country’s position in the rapidly expanding digital infrastructure landscape and places data centers in Mexico squarely at the center of regional technological transformation.

A Massive and Ambitious Bet

Actis is not coming to Mexico as a casual observer. Through Terranova, its purpose-built platform for developing hyperscale data centers, the firm selected Mexico as the first country in Latin America to launch this regional expansion strategy. The project is designed to unfold over an intense three-year period, during which Brazil and Chile will also join the investment roadmap. However, Mexico is the initial anchor. That choice is not accidental. Actis sees the country as a strategic entry point thanks to its growing digital demand, proximity to the United States, and improving industrial ecosystem. The company’s vision is long-term and capital-intensive, aimed at building infrastructure capable of supporting the next generation of cloud computing and artificial intelligence workloads.

Energy: The Deciding Factor for Digital Growth

The message from Actis is blunt and unambiguous: without sufficient and reliable energy, the dream of artificial intelligence and cloud expansion could remain just that—a dream. Power infrastructure has become the single most important constraint for digital development in Latin America. While Mexico has generation capacity, the real challenge lies in transmission and grid connectivity. Access to the National Electric System, especially in high-demand regions, is increasingly complex. This bottleneck threatens to slow the expansion of data centers in Mexico unless it is addressed with urgency and coordination between public and private actors. Mauricio Giusti, Managing Director of Digital Infrastructure at Actis, has emphasized that energy availability is not just a technical detail—it is the foundation upon which the entire AI and cloud ecosystem depends.

Construction Already Underway

This investment is not theoretical. Terranova’s first Mexican data center is already under construction in San Miguel de Allende, Guanajuato. The contract was signed on December 31, 2024—while most people were celebrating the New Year—and delivery is scheduled for January 2026. According to Giusti, Actis is achieving a record-breaking delivery timeline of just 12 months, compared to the industry norm of 18 to 24 months. That accelerated execution reflects both the urgency of market demand and Actis’ operational experience in delivering complex infrastructure projects globally. But the expansion does not stop there. Terranova is also negotiating the acquisition of land in Querétaro, Mexico’s largest and most established data center cluster. The plan is to develop a purpose-built campus designed from the ground up to support high-density AI workloads, ensuring scalability and long-term relevance.

Private Sector Filling Infrastructure Gaps

One of the most striking aspects of this expansion is how companies are responding to Mexico’s infrastructure constraints. Members of the Mexican Data Center Association (MEXDC) confirm that several firms are directly financing substations and grid reinforcement projects, which are later transferred to the state. In effect, private investors are paving the road themselves to ensure projects move forward. While this approach demonstrates confidence in the market, it also underscores the need for broader public investment and regulatory alignment. Without it, the pace of growth for data centers in Mexico could be uneven and more expensive than necessary.

Mexico’s Geopolitical and Strategic Advantages

Beyond local demand, Actis sees a much bigger picture. Latin America, and Mexico in particular, could emerge as a global hub for “AI factories”—massive facilities dedicated to training and running artificial intelligence models. Currently, these AI factories are concentrated in the United States. But the U.S. is facing severe constraints on energy availability, land, and permitting timelines. Mexico offers a compelling alternative: relative energy abundance, competitive costs, and low-latency connectivity to North American markets. These advantages make data centers in Mexico strategically attractive not only for domestic use, but also as extensions of U.S.-based digital ecosystems. Nearshoring is no longer limited to manufacturing; it is now reshaping digital infrastructure as well.

A Significant Gap—and an Even Bigger Opportunity

Actis has not disclosed how much of the US$1.5 billion will be allocated to each country. However, the firm did share a revealing statistic: data center capacity per capita in Latin America is 20 times lower than in the United States. That gap highlights a clear reality. The region is underbuilt for current and future digital demand. But it also signals enormous upside potential for investors willing to move early and build at scale. Mexico’s role in closing that gap could be decisive, provided that energy transmission, permitting, and long-term planning keep pace with private investment.

Looking Ahead

Actis’ investment marks more than a financial milestone—it signals confidence in Mexico’s role in the global digital economy. With hyperscale projects already underway, advanced AI-ready campuses on the horizon, and growing interest from international capital, data centers in Mexico are rapidly becoming a cornerstone of the country’s economic and technological future. The challenge now lies in execution. If energy bottlenecks are resolved and infrastructure planning aligns with market demand, Mexico has a real opportunity to position itself as a regional—and even global—leader in next-generation digital infrastructure.