A US$1 billion investment by Flex to produce AI and data center equipment in Mexico signals accelerating demand for advanced manufacturing and digital infrastructure, supported by government industrial policy and nearshoring trends, according to Claudia Sheinbaum and Marcelo Ebrard. Rising AI adoption,reported by INEGI and EY-Parthenon,is driving growth in data centers, cybersecurity, cloud services and hybrid STEM talent demand. The trend affects technology manufacturers, industrial firms, energy providers and workforce development as Mexico positions itself in global AI and advanced manufacturing supply chains.
Mexico is strengthening its position in advanced manufacturing and AI infrastructure following a US$1 billion investment announcement by Flex. The project, focused on producing data center and AI equipment, is expected to generate more than 5,000 jobs and expand Mexico’s role in global technology supply chains, government officials and company executives said.
President Claudia Sheinbaum described the initiative as a key step in the country’s technology development strategy. Sheinbaum said the investment reflects growing confidence in Mexico’s manufacturing capabilities and workforce. Economy Minister Marcelo Ebrard said the investment will be deployed over the next three years, primarily in Jalisco, Chihuahua and Aguascalientes. The expansion is expected to strengthen Mexico’s position in advanced manufacturing and AI-related infrastructure. Ebrard added that the project supports Mexico’s ambition to rank among the world’s leading countries in advanced manufacturing tied to data centers and AI. “With this investment, Mexico improves its position in advanced manufacturing. We could say we are among the top six globally in data center and AI manufacturing,” Ebrard said. The announcement also brings Mexico’s investment portfolio during the current administration, which began in October 2024, to more than US$300 billion, he added.
Flex Expands Long-Term Investment Strategy
The announcement builds on Flex’s long-standing presence in Mexico and reflects continued growth in technology manufacturing demand.
Guillermo del Río, Director of Business Development and Government Relations,Flex, said the company has invested US$2.3 billion in Mexico over the past decade. However, he noted the new US$1 billion initiative represents the largest investment by the company since it began operating in the country.
The expansion is expected to create more than 5,000 specialized jobs, requiring skilled labor in advanced manufacturing, engineering and digital technologies.
“In Mexico we have a great deal of talent. That has been the strength of our company and of the country, where we have achieved advanced manufacturing capabilities,” del Río said.
Ebrard added that investments of this scale could position Mexico among a limited group of countries capable of producing highly advanced manufacturing equipment.AI Adoption Accelerates Across Mexico
The investment comes amid accelerating adoption of AI across Mexico’s business landscape. Companies are increasingly implementing AI-driven systems and digital platforms, creating demand for infrastructure, data processing capacity and cybersecurity solutions.
Organizations are also rethinking how they manage applications and infrastructure across data centers, cloud environments and edge systems. The growing complexity of digital operations is driving demand for integrated platforms that simplify application delivery, monitoring and protection, reported MBN.
Technology providers are responding with new solutions designed to centralize operations and improve visibility. During its AppWorld event, F5 announced enhancements to its Application Delivery and Security Platform, which integrates application delivery, monitoring and protection in a single environment.
Companies often operate multiple tools independently, which can slow incident detection and complicate coordination among IT teams, according to the company.
Among the tools introduced was F5 Insight for ADSP, designed to convert operational data into analytical indicators for IT teams.
The platform uses telemetry and advanced analytics to transform large volumes of technical information into diagnostics. This approach can help organizations anticipate failures, improve service performance and support data-driven decision-making.
Greater visibility may also reduce downtime, improve availability and optimize technology resources, particularly in environments that span multiple clouds, data centers and edge systems.
The trend coincides with expanding AI adoption across Mexico’s productive sector. According to data from INEGI based on the 2024 Economic Census, nearly 40% of companies in Mexico already use AI in their operations. The same analysis reported that approximately 5,600 industrial robots were recently installed in the country, reflecting increased automation across industries.
A separate study by Centro México Digital estimated that AI adoption could increase Mexico’s GDP by up to 6%.
AI Infrastructure Drives Data Center Growth
The rise of AI is also reshaping infrastructure requirements, particularly in the data center sector.
The Mexican Association of Data Centers said AI integration with specialized infrastructure will help determine which countries lead the next cycle of global innovation. The organization noted that sustained growth will depend on balancing expansion with operational resilience.
Amet Novillo, President, MEXDC, said AI is increasing global energy demand for data centers while creating opportunities to modernize electrical infrastructure and accelerate clean energy adoption.
The expansion of data center infrastructure is expected to strengthen Mexico’s digital competitiveness and support growth in cloud services, AI applications and advanced manufacturing.
Demand for Hybrid STEM Talent Expands
The growth of AI adoption is also reshaping labor market requirements. Research from EY-Parthenon found that 100% of CEOs in Mexico identify AI as a primary driver of profitability for 2026.
The study indicates that organizations are moving from pilot programs to large-scale AI transformations. Companies are increasing capital allocation to generative AI, machine learning and autonomous systems, reported MBN.
José Luis Guasco, Managing Director,EY GDS Mexico, said AI is transitioning from experimental technology to a core component of competitiveness.However, companies face challenges in scaling AI initiatives. According to the study, barriers include organizational culture, operational complexity and shortages of specialized talent.
To address these challenges, companies are hiring hybrid profiles that combine technical skills such as programming and data analytics with strategic capabilities, including business planning and critical thinking.
Organizations aim to enhance productivity through technology rather than replace workers, reflecting a broader shift toward human-centered AI adoption.