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Data centres and power: who pays for AI's water?

By Diana Baptista

Just three hours away from Mexico City, Querétaro state is home to a tech revolution. Big Tech companies built a dozen data centres in this semi-desert, promising to invest billions of dollars and provide thousands of jobs.

Data centres are stadium-sized buildings that together store all the internet’s pictures, videos, documents, social media posts and more.

They are also increasingly important to the rise of data and energy-hungry AI.

Drone shot of a electrical substation at a data centre in the municipality of Colón, Querétaro. July 25, 2025. Thomson Reuters Foundation/Miguel Tovar

Drone shot of a electrical substation at a data centre in the municipality of Colón, Querétaro. July 25, 2025. Thomson Reuters Foundation/Miguel Tovar

Drone shot of a electrical substation at a data centre in the municipality of Colón, Querétaro. July 25, 2025. Thomson Reuters Foundation/Miguel Tovar

But worldwide the data centre industry is opaque.

Details of how much water and energy they require, or how many greenhouse gas emissions they release, are hidden in non-disclosure agreements with governments, omitted from sustainability reports, or are public but impossible to verify.

For two years, my colleague Fintan McDonnell and I have combed through hundreds of files on water concessions, council meetings, sustainability reports and public information requests.

We spent months talking to activists, researchers and residents, trying to understand what life is like for those who live near a data centre.

The Ascenty 2 data centre in Querétaro used by Microsoft in La Esperanza, Querétaro. July 27, 2025. Thomson Reuters Foundation/ Miguel Tovar

The Ascenty 2 data centre in Querétaro used by Microsoft in La Esperanza, Querétaro. July 27, 2025. Thomson Reuters Foundation/ Miguel Tovar

We found the opacity, extraction of scarce resources and tax breaks given to the industry in Querétaro are part of a playbook replicated around the world, from the United States to India.

In these series of stories and videos, we explore the impact of data centres in Querétaro and Big Tech’s unfulfilled promises.


AI

AI needs a lot of power and water. Can Mexico afford it?

Locals in Queretaro say they’ve been left in the dark as their home becomes ‘data centre valley'

AI

Resistance blooms in Mexico's data centre valley

Community resistance grows in Mexico as locals feel the environmental impact of the data centre boom and empty promises

Drone shot of a electrical substation at a data centre in the municipality of Colón, Querétaro. July 25, 2025. Thomson Reuters Foundation/Miguel Tovar
Just Transition

AI data boom in Mexico fuels rise in dirty energy

A boom in U.S. data centres is devouring fossil fuels in Mexico - and hitting locals with power cuts and pollution

The Ascenty 2 data centre in Querétaro used by Microsoft in La Esperanza, Querétaro. July 27, 2025. Miguel Tovar/Thomson Reuters Foundation
AI

Data centres lured to Mexico can avoid environmental reporting

In a data centre boom in Mexico's Querétaro state, big tech companies are given leeway to bypass environmental requirements

Workers work at Europe's largest data centre of TikTok, a social media firm owned by China-headquartered Bytedance, in Hamar, Norway, November 30, 2023. REUTERS/Victoria Klesty
AI

As AI fuels growth of data centres, critics fight back

Communities are campaigning against the arrival of AI-powered data centres that they say bring negative environmental impacts

Drone shot of one of Microsoft's data centres located in the municipality of Colón, in Querétaro, México, June 17, 2024. Thomson Reuters Foundation/Miguel Tovar
AI

Thirsty data centres spring up in water-poor Mexican town

The Mexican state of Querétaro struggles with a two-year drought while drawing investment for water-hungry data centres

AI

Forget jobs. AI is coming for your water

A conversation with Chat GPT can consume a bottle of water. So why is big tech setting up AI in some of the world’s driest countries?