According to MBN, KIO Data Centers plans to invest about US$1.3 billion to develop QRO3, the next phase of its technology campus in Queretaro’s El Marqués Industrial Park. The project is expected to provide approximately 100 megawatts of capacity and could become the Mexican company’s largest data center, while generating more than 8,100 direct and indirect jobs.
The expansion comes as demand for digital infrastructure increases across Mexico and North America, driven by cloud services, artificial intelligence (AI), data processing and other digital operations. KIO CEO Octavio Camarena Villalvazo said the project is part of the company’s broader growth strategy in a market where data centers are becoming an important component of economic infrastructure.
KIO has operated in Queretaro for more than 20 years and developed one of the region’s first data centers. With QRO3, the company plans to significantly increase its installed capacity in Mexico while responding to demand from companies requiring cloud and AI infrastructure.
Qro3 Expands Querétaro’s Digital Capacity
The QRO3 project is designed to serve demand for cloud and AI-related services, with a particular focus on North American customers. During the announcement, Camarena said data centers have become part of the infrastructure that determines a country’s competitiveness, alongside roads, ports and airports.
“Without world-class data centers there is no cloud, no smart manufacturing, no digitized data, no artificial intelligence,” Camarena said.
The project also reinforces Queretaro’s position as a data center hub. Minister of Economy Marcelo Ebrard said the state accounts for about 80% of Mexico’s data centers and highlighted KIO’s role in developing the sector. During the event, Mexico’s Economy Ministry awarded KIO the Hecho en México designation, recognizing the Mexican company’s development of technology infrastructure from Queretaro.
The concentration of data center capacity in the state has been supported by its industrial base and connectivity, while growing demand for digital services is creating additional requirements for power, telecommunications and specialized infrastructure.
The expansion is also expected to affect employment and the technology supply chain. KIO estimates that QRO3 could create more than 8,100 direct and indirect jobs. Data center operations require specialists in electricity, telecommunications, information systems, cooling, maintenance, cybersecurity and critical infrastructure management.
As capacity expands, the project could therefore increase demand for specialized technical talent and strengthen links between technology companies, suppliers and educational institutions in Queretaro.
KIO Increases Investment Across Mexico And Latin America
QRO3 forms part of KIO’s wider expansion program following the arrival of I Squared Capital as a shareholder. Camarena said the company has invested more than US$900 million in Mexico and Latin America since that transaction.
Of that amount, approximately US$200 million corresponds to projects and expansions planned for 2026 in Mexico City, Monterrey, Queretaro and Guatemala. The investment pipeline demonstrates the importance of Mexico within KIO’s regional strategy and reflects demand for additional capacity in different markets.
The company is also expanding outside Queretaro. In Mexico City, KIO announced the construction of MEX8, a US$70 million data center in Santa Fe. The facility is expected to add 4 MW of critical capacity for cloud, colocation and low-latency services and was reported to be 60% pre-sold at the time of its announcement, reported MBN.
MEX8 is expected to generate about 3,000 jobs and enter service in 1Q2027. Its location also reflects the growing importance of placing some digital infrastructure closer to users and businesses.
For applications such as AI inference, digital banking, cybersecurity and autonomous mobility, reducing latency can be an operational requirement. This is encouraging data center operators to complement large campuses with facilities located closer to major demand centers.
Mexico City officials have also identified digital infrastructure as a requirement for the capital’s technology ecosystem. Mexico City Economic Development Minister Manola Zabalza said more than 70% of Mexico’s startups are based in the capital, increasing demand for scalable infrastructure supporting financial services, e-commerce, streaming and other digital businesses.
Energy Efficiency Becomes A Key Requirement
KIO’s expansion also incorporates energy-efficiency considerations as the data center market grows. The company said its facilities seek to maintain a low power usage effectiveness indicator while incorporating renewable energy and practices intended to reduce environmental impact.
Energy availability and efficiency are increasingly relevant to data center development because large-scale computing infrastructure requires continuous electricity, cooling and connectivity. The expansion of AI and cloud computing is increasing the amount of processing capacity required by businesses, placing additional pressure on power infrastructure.
For Queretaro, QRO3 therefore represents more than an expansion of physical data center capacity. It connects the state’s industrial ecosystem with demand generated by cloud computing, AI, advanced manufacturing and enterprise digitalization.
Camarena said each additional megawatt of data center capacity can function as a “knowledge factory” for the country. He also cited studies estimating that investment in data centers can produce an economic multiplier of five to seven times the original investment.
Applied to a potential US$1.3 billion investment, that estimate suggests QRO3 could generate several billion dollars in broader economic activity as construction, equipment procurement, specialized services and operations develop around the project.
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Source: MBN
