Narayan AmmachchiSingapore-based Flex has committed to invest $1 billion in Mexico, targeting the rapidly expanding data center and AI infrastructure market.
The company will design and manufacture advanced components for data centers, including power systems, cooling solutions, and server infrastructure, according to the Mexican government.
Flex said the investment will strengthen Mexico’s standing as one of the world’s top six manufacturing hubs for AI and data center technologies.
The project is expected to generate more than 5,000 jobs, with operations concentrated in Jalisco, Chihuahua, and Aguascalientes.
The investment reflects a broader nearshoring shift, as global technology and manufacturing firms relocate operations closer to the US to enhance supply chain resilience and reduce geopolitical exposure.
Demand for data center capacity has surged over the past two years, growing at more than 20% annually. This growth is driven by AI workloads, which require massive power capacity—often up to 100 MW per facility—and advanced cooling systems.
The move is part of a wider trend. Rising US-China tensions, tariffs, and disruptions in key trade routes have accelerated the shift toward Mexico. Companies such as Foxconn and TSMC have already expanded their presence, pushing foreign direct investment in Mexico to $36 billion in 2023, a 27% year-on-year increase.
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