Mexico in the Techshoring Era: Emerging Tech Hub or Just a Cost-Effective Workforce?

For years, Mexico has been the go-to hub for manufacturing, thanks to its strategic location next to the U.S. and a highly competitive workforce. But recently, something interesting has been happening—Mexico is making a name for itself in the digital and tech space. 

Tech giants like Amazon Web Services (AWS), Microsoft, and Netflix are investing billions in digital infrastructure, raising an important question: 

Is Mexico transitioning into a true tech hub, or is it still just seen as a low-cost labor provider, even in the digital era? 

Big Tech’s Bet on Mexico 

Major companies are putting serious money into Mexico’s techshoring transformation: 

• AWS: In early 2024, Amazon announced a $5 billion investment to set up a cloud infrastructure region in Querétaro over the next 15 years, reinforcing Mexico’s role as a tech hub for Latin America. 

• Microsoft: In September 2024, Microsoft unveiled a $1.3 billion expansion focused on AI infrastructure, responding to the growing demand for digital solutions and cloud services. 

• Netflix: In February 2025, Netflix committed $1 billion over four years to produce original content in Mexico, collaborating with local producers and talent. This move not only boosts Mexico’s creative industry but also expands tech job opportunities in digital production and streaming services. 

These investments show a clear trend: Mexico is no longer just about manufacturing—it’s becoming a key player in the digital economy.

At President Claudia Sheinbaum's conference, "La Mañanera", Netflix CEO Ted Sarandos announced a multimillion-dollar investment in Mexico for audiovisual productions.

Can Mexico Keep Up with the Demand for Tech Talent? 

With all this money pouring into tech, there’s one big challenge: Does Mexico have enough skilled professionals to support this shift? 

A 2024 study by the Knowledge Observatory of UNIR University found that: AI-related job postings grew by 95% in the past year, with 7,254 vacancies listed on platforms like LinkedIn and InfoJobs. 

The demand is there, but the supply? Not so much. To truly compete with places like India or China in tech services, Mexico needs to invest heavily in education and workforce development. That means stronger partnerships between universities and the private sector to train the talent required for the digital economy. 

Can Mexico Become a Tech and Knowledge Exporter? 

For decades, Mexico’s economy has been defined by physical exports—cars, electronics, industrial goods. But with these new digital investments, could Mexico shift toward exporting tech services and knowledge? 

• Cloud computing and AI infrastructure are attracting global businesses to store and process data in Mexico. 

• Streaming and digital content production are making Mexico a leader in Spanish-language entertainment. 

• Nearshoring is no longer just for manufacturing—it’s happening in software, fintech, and IT services too. 

But let’s not ignore the challenges. Large-scale data centers require massive resources like water and electricity, which is already causing concerns in some regions. In Querétaro, for example, local communities are worried about water shortages and power grid capacity due to rapid tech expansion. 

So, the big question is: Can Mexico balance tech growth with sustainability? 

The Pros & Cons of techshoring

Nearshoring—bringing business operations closer to home—has huge potential, but it also comes with obstacles that need to be addressed. 

Opportunities: 

• Economic Growth & Jobs: Nearshoring could create between 500,000 and 800,000 new jobs in Mexico by 2030 (INEGI, Mexico’s Economy Ministry & Central Bank). 

• Diversifying Exports: Moving beyond manufacturing to digital and tech services adds value to Mexico’s economic output. 

• Infrastructure Development: As tech firms set up operations, there’s a push for better connectivity, power grids, and tech parks, benefiting entire regions. 

Challenges: 

• Infrastructure Gaps: Some areas still lack the high-speed internet, power capacity, and logistical support needed for major tech operations. 

• Shortage of Skilled Talent: The demand for AI engineers, software developers, and cybersecurity experts is outpacing the supply. 

• Regulatory & Bureaucratic Hurdles: Foreign investors still struggle with slow approval processes and unclear regulations. 

• Sustainability Concerns: Large-scale data centers require huge amounts of energy and water, which could create tensions in certain communities. 
  

Is Mexico Ready to Compete with India and China in the Digital Economy? 

Right now, India dominates IT outsourcing, and China leads in tech hardware production. Can Mexico carve out its own niche in the global digital economy? 

Some say yes. Mexico has a strategic location, a growing pool of engineers, and trade agreements like USMCA, making it an attractive nearshoring destination. 

Others aren’t convinced. Without major reforms in education, infrastructure, and sustainability, Mexico could struggle to fully capitalize on this moment. 

Final Thought: From Manufacturing Powerhouse to Digital Player? 

Mexico has proven itself in manufacturing, but the next challenge is tech and digital services. If it plays its cards right, it could become a major tech hub for North America—competing not just in low-cost labor, but in innovation, AI, and digital transformation. 

So, what do you think? Is Mexico ready to step up as a true tech hub, or are we still stuck in the "low-cost labor" mindset?