Microsoft is expanding its data center footprint in Mexico.

During his keynote at the Microsoft AI Tour 2024 in Mexico City, CEO Satya Nadella this week announced a new investment of $1.3 billion over the next three years to “enhance AI infrastructure,” as well as initiatives aimed at promoting digital and AI skills.

The company said the expansion would include a “significant investment” to increase local computing capacity – but didn’t provide more details.

“We are entering a new era of AI with the promise to create inclusive economic growth and opportunity across every role, industry, and country, including in Mexico,” said Nadella. “Our investments in AI infrastructure and skilling in Mexico will help ensure people and organizations across the country realize the benefits of this technology shift.”

After announcing plans in 2020, Microsoft launched its first Mexican Azure cloud region, in Querétaro State, in May of this year. The region features three availability zones.

In the announcement, the company noted investments in several Mexican carbon capture and removal projects. Microsoft recently signed a six-year deal with The Next 150 to remove up to 95,000 tons of CO2 from a biochar project in Guanajuato, Mexico. In April, it signed a one-year deal with Toroto SAPI de CV to remove 234,000 tons of CO2 through a forest ecosystem restoration project in the state of Campeche, Mexico.

“Today’s announcement demonstrates Microsoft’s trust and commitment to Mexico supporting inclusive economic growth in the country. With this, we are empowering individuals, companies, and society to enhance innovation and democratize the use of AI through skills development, knowledge sharing, and access to cutting-edge technology and digital infrastructure, while also meeting our sustainability goals,” added Rafael Sánchez Loza, general manager of Microsoft Mexico.

Earlier this year, AWS announced plans to open a Mexican cloud region, with Google also expected to open a cloud region soon in Querétaro. AWS already has two Edge locations in the Querétaro area. Huawei and Oracle also both have a presence in Mexico.