Weekly Review I August 30, 2023

GENERAL SITUATION IN MEXICO

Weekly Review I August 30, 2023

RELEVANT NEWS

BUSINESS CLIMATE IN MEXICO TAKES A LEAP FORWARD THANKS TO NEARSHORING AND THE MEXICAN SUPER PESO

The business climate in Mexico recorded a notable improvement in the third quarter of 2023 and, together with Brazil, brought the Latin American rating to its best level in the last two years and the second best in almost six years, according to the indicator released Thursday by the Brazilian economic research center Fundação Getulio Vargas (FGV).

The so-called Latin American economic climate index (ICE), which the FGV elaborated with surveys of 119 specialists from 15 countries, jumped more than 30 units, from 65.8 points in the second quarter to 99.6 points in the third quarter.

This is its best level since the second quarter of 2021 (101.4 points) and the second-best since the first quarter of 2018 (102 points).

According to the FGV, the sharp jump was caused by the improved assessment of Brazil and Mexico, the two largest economies in the region.

While Brazil’s index jumped from 58.8 points in the second quarter to 121.4 points in the third - the highest for the country in 11 years - Mexico’s rose from 85.7 to 118.7 points.

“The trajectory of the falling inflation rate and the approval of the new fiscal framework and tax reform, as well as the upward revisions of this year’s GDP projections, are some of the factors that explain Brazil’s improved assessment,” according to the FGV.

The entity attributed the increase in Mexico’s rating to the fall in inflation, the appreciation of its currency against the dollar, and the displacement of direct investment flows from the United States and China to Mexico due to the nearshoring trend.

SOURCE: FORBES MEXICO

RELEVANT NEWS

REQUEST FOR INDUSTRIAL POLICY TO DETONATE NEARSHORING

In the midst of the trade war between the United States and China, Mexico cannot fall into the dilemma of “marrying one country or the other”, but rather define a triangular strategy led by the public-private sector to take advantage of the benefits of nearshoring, recommended economic experts.

Enrique Dussel Peters, Coordinator of the Center for China-Mexico Studies (Cechimex) of UNAM’s School of Economics, predicted the imposition of more protectionist measures against China by North American countries; however, the suggestion is that the next federal government, together with the Business Coordinating Council (CCE), develop an industrial policy focused on generating added value.

Participating in the seminar “The USMCA within the Framework of the China-US Confrontation”, organized by INADI and the CCE, Francisco Javier Haro Navejas, Researcher at the Faculty of Economics of the University of Colima, said that China is at a moment that defines the business and investment agenda both in North Asian countries and in Latin America, and Mexico lacks public policies to link the international environment.

He pointed out that Chinese investments will reach our market, but the most benefited from nearshoring have been Vietnam and Taiwan, as well as South American countries such as Brazil.

He hoped that with the change of government, there will be guidance because the benefits that have come with nearshoring will be limited by the lack of human, infrastructure, and technological capacity.

RELEVANT NEWS

Arturo Oropeza, President of the Institute for Industrial Development and Digital Transformation A.C. (INADI), stated that Mexico has suffered from a diplomatic policy with China and there is a vacuum due to a lack of knowledge or caution, even though it could be an opportunity.

The head of the organization grouped by academics who promote an industrial policy mentioned: “It is estimated that 450 new companies will be installed in the country due to the nearshoring phenomenon and 20% of these are Chinese... it is a geopolitical effect”.

However, Dussel Peters regretted that in Mexico “we

do not have business organizations or officials interested in a serious discussion with China. We are in a magical realism that Foreign Direct Investment (FDI) will rise when the specific approach should be which products should drive a methodological framework of value chains.

“We cannot deepen a Free Trade Agreement as the only development project, it is illusory... it is to yearn for the past and that no longer exists,” he said. The Director of Cechimex said: “It would seem that China is a possibility for growth and trade, but China is here to stay”.

SOURCE: EL ECONOMISTA

RELEVANT NEWS NEARSHORING AND 5G WOULD INCREASE ELECTRICITY CONSUMPTION BY 2.3%, WARNS AIPOWER

The relocation of industries from abroad to Mexico and the emergence of cellular networks with fifth-generation or 5G technology will put upward pressure on electricity demand, which could grow by up to 2.3% annually in Mexico and 3.6% only in the region of Baja California and northern Mexico, where the first nearshoring investments will be felt, estimated AiPower.

AiPower, with eight industrial complexes located around the world for the development of electric generators and 200 patents registered in this sector, estimates that Mexico has a lag in its electric infrastructure, which will be evident and will worsen as nearshoring is perceived in the country.

Nearshoring is a phenomenon of relocation of invest-

ments and industrial plants from China to regions closer to the United States, such as Mexico. This relocation of industry means that the country could increase its economic growth from 1.1% to 2.6% by the end of 2023 and, in the medium term, unleash the arrival of investments of over 40 billion dollars in Mexico from all sectors.

But this means that the country must have a reliable electrical infrastructure to take advantage of the economic opportunities of this relocation, including speeding up the deployment of 5G technology, which, by its very nature, allows the improvement of production processes. However, 5G networks also imply additional energy consumption.

Enrique Leon, CEO of AiPower Mexico, considers that

RELEVANT NEWS

the country is lagging behind in its electrical infrastructure, but there is evidence that this obstacle has begun to be solved.

“Nearshoring is a trend that is redefining the energy industry in Mexico, especially in the north and center of the country, with the arrival of hundreds of companies from all over the world, especially Asia. This translates into a sustained growth of electricity demand in the country. In fact, with this phenomenon, electricity consumption is projected to grow at a 2.3% average annual rate nationwide and 3.6% in Baja California,” said Enrique Leon.

AiPower, which claims to offer generators with the capacity to provide one megawatt of electricity, intends to play a two-pronged game in Mexico.

In the first, the company is going with the supply of its machinery in all industries. With the second, AiPower also intends to support the expansion of cellular coverage and the first 5G network deployments, with the dispersion of generators that ensure electricity supply in this type of infrastructure.

“Another important trend we are observing is the arrival of 5G in Mexico, the implementation of the fifth-generation mobile network, and that is generating a significant increase in energy demand. Power generators have then become essential to ensure a reliable power supply in these circumstances. Thus, AiPower wants to support the expansion of 5G technology, which in turn will drive the development of the digital economy and next-generation connectivity throughout the country,” said Enrique Leon.

SOURCE: EL ECONOMISTA

KEYPOINTS OF PRESIDENT ANDRES MANUEL LOPEZ OBRADOR’S MORNING PRESS CONFERENCE

August 23-29, 2023

POLITICAL AGENDA

• State of the Union: The President announced that the Government Report will be held on September 1st in Campeche, followed by delivering the report to Congress. He mentioned plans to regularly supervise sections of the Tren Maya with company owners. He will inaugurate infrastructure projects in Cancun and oversee the progress of the Tulum airport, set to be inaugurated in December alongside the new Mexican Airline.

• Judicial Power: President Lopez Obrador discussed the budget’s jurisdiction lying with the Chamber of Deputies due to the Constitution. Autonomous bodies’ budget proposals are sent to the Ministry of Finance, which then forwards them to the Chamber of Deputies. He criticized excessive benefits received by judges, magistrates, and ministers, including high salaries and various perks, which he deemed unconstitutional since they shouldn’t earn more than the President. He proposed a reform to elect these officials through popular vote, emphasizing the importance of the 2024 elections for achieving this. He highlighted the Judiciary’s history of supporting elite-favoring privatizations and stressed the need for reform in this regard.

KEYPOINTS OF PRESIDENT ANDRES MANUEL LOPEZ OBRADOR’S MORNING PRESS CONFERENCE

Branch and autonomous bodies not to serve the interests of the oligarchy, asserting that their sole allegiance should be to the people.

• Textbooks: The president expressed satisfaction over the distribution of free textbooks by the Ministry of Education in 30 states, with Chihuahua and Coahuila being exceptions due to ongoing constitutional disputes. He accused Minister Luis Maria Aguilar of halting textbook distribution in these two states and highlighted that a file regarding a pending tax payment of 25 billion pesos by a company remains archived without resolution.

• INAI: Regarding the Supreme Court’s decision to allow the INAI (National Institute for Transparency, Access to Information, and Personal Data Protection) to convene with only four council members, the President of Mexico commented positively on the decision, suggesting that those in such autonomous bodies should consider reducing their salaries. He expressed concern about a sense of detachment among those working in autonomous organizations, emphasizing their separation from the people. He urged members of the Judicial

• Altos Hornos de Mexico: Regarding the miners in Monclova, Coahuila, the President of Mexico mentioned efforts to rescue Altos Hornos, a steel company, due to its substantial debt and the resulting job losses and unpaid suppliers. He stressed that the company owes significant amounts to the public treasury. However, Alonso Ancira, the president of Altos Hornos, has not relented. The President emphasized the need for financially and administratively capable companies to take over Altos Hornos. This approach would enable rehiring of workers and negotiating with suppliers to restore the company. He clarified that the debt cannot be forgiven but suggested that an agreement could be reached with new investors.

• Cantaluna: Responding to a reporter’s question about the Cantaluna issue, the president mentioned that a comprehensive agreement has been reached with both Fovissste and Infonavit to reimburse individuals affected by problems with the housing project constructed in a highrisk area. He clarified that the affected individuals cannot remain there and that their money is being returned to provide them with the opportunity to access alternative housing. The president further clarified that among all the affected people, only 15 families remain dissatisfied, who have sought legal assistance to capitalize on the situation. He emphasized that these families fail to comprehend the fair treatment being offered to them and advised them not to be manipulated by “coyote” lawyers seeking to exploit their situation.

KEYPOINTS OF PRESIDENT

ANDRES MANUEL LOPEZ OBRADOR’S MORNING PRESS CONFERENCE

ELECTIONS 2024

• Zoe Robledo: IMSS Director Zoe Robledo responded to inquiries about his potential gubernatorial aspirations for Chiapas. He affirmed that he prioritizes building a lasting institution over personal ambitions and is confident in his decision. Robledo clarified that reports of contract issues didn’t sway his choice, and these concerns were addressed by the publishing newspaper. He highlighted strengthening IMSS-Bienestar as a way to support Chiapas by providing healthcare access to those without social security. While not ruling out future political aspirations in the state, he emphasized his current dedication to the institution.

• MORENA´s internal process: President Lopez Obrador discussed MORENA’s internal process and responded to allegations of public resource misuse. He emphasized the process’s positive advancement, signaling a departure from historical practices of favoritism and manipulation. Regarding campaign advertising, he expressed a preference for its absence, suggesting it doesn’t greatly benefit candidates aligned with progress or regression. He criticized Reforma newspaper for prioritizing opposition candidates and mentioned censorship prevented him from naming one. Shifting topics, Lopez Obrador highlighted a significant achievement during his tenure: reducing Mexico’s wage gap from 35% to 15%, showcasing tangible progress in addressing income inequality.

INTERNATIONAL

• Elections in the US: President Lopez Obrador responded to the remarks made by the current

Florida governor, Ron DeSantis, who stated that if elected president of the United States, he would send armed forces to Mexico to combat drug cartels. The Mexican president expressed the belief that such anti-immigrant rhetoric could be perceived as beneficial for certain candidates during elections. He urged people not to take these statements too seriously, as they are likely shaped by the electoral context. He emphasized that the relationship between both countries has improved, and he underscored the significance of the economic and trade ties between them. He highlighted that the proposed border closure would have adverse effects on both Mexico and the United States due to their intertwined economies.

• Latin America: On Friday, September 8th, the President will travel to Colombia to discuss cooperation for mutual development and the issue of narcotics trafficking. Following that, he will visit Santiago, Chile, to commemorate the 50th anniversary of the coup d’etat and the assassination of Salvador Allende at the Palacio de La Moneda.

KEYPOINTS OF PRESIDENT ANDRES MANUEL LOPEZ OBRADOR’S MORNING PRESS CONFERENCE

SECURITY

• Nuevo Leon: Addressing recent violence in Nuevo Leon and commenting on internal divisions within Movimiento Ciudadano, the president stated that an investigation is underway. He acknowledged Samuel Garcia as a capable governor but noted opposition from the PRIAN bloc in the state. The president criticized conservative media in the northern region, accusing them of suppressing pluralism and promoting outdated and manipulative conservatism. He urged caution, particularly during the ongoing campaign period. The president also highlighted Minister Norma Piña’s decision to hire an ex-associate of Garcia Luna, who had signed contracts with companies under investigation in Mexico.

• National Commission for Missing Persons: President Lopez Obrador commented on Karla Quintana’s resignation from the National Commission for Missing Persons, stating that her replacement is under the Secretariat of the Interior’s jurisdiction and he doesn’t know the reasons behind her departure. A comprehensive nationwide search

is ongoing, and a detailed census report is anticipated in the coming months. Collaboration involves various entities, such as the Secretariat of Public Security, prosecutors, governors, the National Commission for Missing Persons, and National Servants. The President also mentioned his lack of knowledge about the Prosecutor’s process concerning missing young people in Lagos de Moreno, while confirming government support for their search efforts. Additionally, he highlighted the allocation of a budget to rescue trapped miners in Pasta de Conchos and Coahuila as a commitment.

HEALTH

• IMSS Bienestar: President Andres Manuel Lopez Obrador anticipates the completion of the IMSS - Bienestar healthcare system during his tenure, assuring quality medical care, specialized treatments, and free medicine to uninsured Mexicans. He envisions it as a leading global healthcare system. Grateful for Zoe Robledo’s leadership, he confirmed Robledo’s continued role in IMSS. Robledo noted IMSS - Bienestar’s expansion to 24 regions, encompassing 692 hospitals and 13,886 health centers, benefiting over 53 million individuals without social security. Progress in key areas like infrastructure, medication supply, staffing, and equipment was highlighted. Robledo explained that surgery delays were linked to anesthesia machine issues and described steps, including a competitive bidding process, to improve surgical capacity and medication control.

• ISSSTE: President Lopez Obrador discussed progress in the rescue of the ISSSTE, a previously privatized and mismanaged institution. Rosa

KEYPOINTS OF PRESIDENT ANDRES MANUEL LOPEZ OBRADOR’S MORNING PRESS CONFERENCE

Icela Rodriguez was entrusted with leading this effort. Health Secretary Jorge Alcocer outlined six key actions for the ISSSTE’s recovery, focusing on service improvement, quality medicine, equipment, infrastructure, medication supply, and skilled staff. Rodriguez explained how the ISSSTE had suffered due to privatization and mismanagement since 2007, leading to medicine shortages. ISSSTE head Dr. Pedro Zenteno Santaella discussed the growth in beneficiaries and efforts for improvement, including extended hours and new equipment. A substantial investment of 10.4 billion pesos aimed to address medicine shortages. The ISSSTE’s financial director highlighted debt recovery and significant infrastructure investments. Accusations of around 15 billion pesos of embezzlement were revealed, and ongoing investigations into alleged fraud were mentioned. Unproductive SuperISSSTE stores were sold to fund hospitals. The conference ended with condolences for the passing of Veracruz’s Health Secretary, Dr. Gerardo Diaz Morales.

INFRASTRUCTURE

• Tren Maya: Diego Prieto, Director General of INAH, mentioned that in terms of archaeological salvage, approval has been granted for 100% of the right-of-way surface for the project’s progress across sections 1-7. As of August 24, there’s a record of 54,232 diverse immovable properties and 1,233,777 recovered ceramic fragments (all documented). Regarding the archaeological zone improvement program, progress is being made in 27 archaeological sites, with 2 more being attended to for consolidation and restoration of architectural elements.

• Pemex: President Lopez Obrador noted that since the start of his term, investments were made in exploration and production, leading to the discovery of new deposits and enhanced knowledge about existing fields. He expressed his administration’s disagreement with shared-profit contracts, asserting that Pemex is capable of conducting production activities on its own. He emphasized that the energy reform did not yield the anticipated outcomes from the previous government, with only three active contracts in the realm of oil production.

• Southeastern region: The federal leader emphasized the significance of both public investment and construction industry promotion in the southeastern region for job creation and economic development. While acknowledging the importance of increased investment in the south, he pointed out the challenges of establishing water-intensive industries like breweries or dairy basins in the north. He highlighted the economic integration advantages of the northern states, along with regions like the Bajio and Mexico City, due to their strong economic ties with the United States.

KEYPOINTS OF PRESIDENT ANDRES MANUEL LOPEZ OBRADOR’S MORNING PRESS CONFERENCE

• Mexicana de Aviacion: The President mentioned that Mexicana de Aviacion airline will achieve reasonable profits, as flight tickets will cost 18-20% less. He highlighted that the airline will notably cover the route from the Mexico City International Airport (AIFA) to the new Tulum airport, which has received requests from foreign airlines for consideration. He expressed confidence in the disciplined and hardworking military engineers who have proven their capabilities.

GUERRERO

• Security: Secretary of the Navy, Admiral Jose Rafael Ojeda Duran, shared insights into the security landscape of Guerrero, Mexico. To address security challenges, the National Guard has deployed a substantial force of 4,556 personnel across Guerrero. Their efforts have led to the interception of over 10 tons of cocaine along the state’s coastlines. Additionally, there are 31 dedicated search and rescue (SAR) team members available. Plans to assist civilian populations have positively impacted 11,529 individuals. Furthermore, the provision of primary medical care has reached 23,442 people across 23 communities, offering valuable consultations and informative sessions to the local populace.

• Government of Guerrero: Governor Evelyn Salgado emphasized the state’s security and governance situation, with a focus on well-being through social programs. Guerrero benefits from 36 federal and 55 subprograms, supporting over a million residents, a historic level of assistance. The governor highlighted successes, including a disability pension program, scholarships for youth, and pension support for seniors. Healthcare infra-

structure improvements, such as completed hospital projects in Zihuatanejo and Tlapa, were noted, alongside commitments to build hemodialysis clinics in eight regions. Health caravans covering the entire territory address remote region needs effectively. These initiatives underscore the administration’s dedication to social welfare.

• Investment: President Lopez Obrador highlighted the impact of social investment in Guerrero, leading to a 7% reduction in poverty. He emphasized substantial funds allocated to the state and efforts to address nutritional needs. The president reiterated his government’s focus on public welfare, evidenced by the sale of the presidential plane. The funds were used for specialized hospitals in Oaxaca and Guerrero. Another ISSSTE hospital in Acapulco, with an investment of approximately 3.243 billion pesos, is on track for completion before his term ends. The ISSSTE hospital will benefit over 630,000 individuals, offering diverse medical specialties and creating job opportunities. Lopez Obrador affirmed a commitment to preserving the site’s historic architecture while minimizing community disruption.

NEWS BY STATE

BAJA CALIFORNIA

Baja California has become an attractive destination for industrial investment in recent years. Industrial parks offer a number of advantages for companies that want to establish operations in the state, such as high-quality land and buildings, modern infrastructure, and skilled and competitive workforce. As a result of these advantages, the state has experienced significant growth in the development of industrial parks, in recent years, more than 20 new industrial parks have been built in the state, and this growth is expected to continue in the coming years.

SONORA

Alfonso Durazo, Governor of the State of Sonora, welcomes the new United States Consul General, Matthew P. Roth, who will serve the next 3 years in Hermosillo. “We will work in coordination to continue strengthening the United States-Mexico bilateral relationship,” said the Governor of Sonora.

SOURCE: DEBATE

SOURCE: THE LOGISTICS WORLD

CHIHUAHUA

The benefits of nearshoring have permeated several states in northern Mexico, including Chihuahua, where companies in the automotive, aerospace, and medical device sectors have shown special interest in the state to expand operations or for new investments.

From January to June 2023, Chihuahua has received 1.92 billion dollars in Foreign Direct Investment, and up to the beginning of August of this year there were 30 new investments from foreign companies representing 1,300 new jobs.

SOURCE: LOGISTICS WORLD

NUEVO LEON

The Secretary of Economy of Nuevo Leon, Ivan Rivas Rodriguez, highlighted that the nearshoring process has “shielded” the state’s economy since 76 percent of the investments generated by this phenomenon are flowing to the region.

During his conference “The benefits of nearshoring in Nuevo Leon” on the third day of Expo Pyme, the official pointed out how nearshoring is affecting and shielding exports.

SOURCE: TELEDIARIO

COAHUILA

The private construction industry in the Southeast Region of Coahuila has a very intense rebound, due to the demand for industrial buildings, a factor that represents a boost for Nearshoring, said Mario Ricardo Hernandez Saro.

The former president of the Association of Industrialists and Businessmen of Ramos Arizpe (Aiera), indicated that: “all the parks have a lot of demand for properties, the buildings that were already built are the first to be occupied, but there is a high demand for the construction of new spaces,” he explained.

TAMAULIPAS

Construction related to the electricity and telecommunications industry in Tamaulipas had a growth of 2.7% at the end of the first semester of this year 2023, while that related to the oil and petrochemical sector rose 0.7% percent.

The building sector rose 2.5%, transportation and urbanization 0.9%, and other constructions 3.2%; the positive data are part of the projects that have been landed in 2023 on the eve of economic development from the Mexican Chamber of the Construction Industry (CMIC).

SOURCE: MEXICO INDUSTRY

SOURCE: EL DIARIO DE COAHUILA

GUANAJUATO

A delegation from Guanajuato will travel to Germany in September with the objective of attracting more investments, mainly in the automotive and food sectors, according to Ramon Alfaro Gomez, Secretary of Economic Development.

Alfaro Gomez explained that this visit will be used to offer businessmen a positive message about the state of Guanajuato, which will make them want to bring their businesses to the territory, in addition to the fact that it is expected that by the end of the year, the 6 billion dollars that have been stipulated as an investment goal will be achieved.

SOURCE: PORTAL MOVILIDAD

AGUASCALIENTES

During her visit to Aguascalientes, Senator Bertha Xochitl Galvez Ruiz, an aspiring national representative for the Frente Amplio por Mexico, highlighted the importance of nearshoring as an opportunity for economic growth in the region. She argued that this strategy would not only promote employment and growth but would also help diversify the local economy.

SOURCE: HERALDO

QUERETARO

Italian companies are joining the state’s Circular Economy System, through a chain headed by the firm Eurotranciatura, which invited 14 suppliers to be part of this model with the aim of changing and improving processes, informed the Ministry of Sustainable Development (Sedesu).

One of the objectives is for companies to reduce emissions and contribute to the 41,000 tons of CO2 that have been avoided since 2021, when the system began, which to date has generated 177 projects, explained the head of Sedesu, Marco Antonio del Prete Tercero.

SOURCE: EL ECONOMISYA

CDMX

The Government of Mexico City, in collaboration with the private sector, has presented the “Nighttime Self-Care Decalogue” aimed at bars and nightclubs. The objective of this strategy is to enhance the safety of citizens in response to criminal incidents that have occurred in these venues. The decalogue includes measures such as planning the exit in groups, consuming responsibly, safeguarding drinks, staying alert to the surroundings, engaging in safe social interactions, monitoring the time of alcohol sales, verifying the bill, using secure taxis, being cautious with newly acquainted people during nightlife, and seeking psychological support in case of depression. These measures aim to promote the safety and well-being of those who attend nighttime establishments in the city.

STATE OF MEXICO

President AMLO announced an agreement with the State of Mexico to distribute free textbooks for the 2023-2024 school year. The agreement followed a meeting between SEP authorities and Governor Alfredo del Mazo’s team. Previously, there were differing criteria on distribution, but after the meeting, it was decided that the textbooks would be provided to all students. The State of Mexico’s Governor agreed with this decision.

SOURCE: EL ECONOMISTA

SOURCE: EL UNIVERSAL

INVESTMENT NEWS

NATIONAL

INNOVATION NEW MATERIAL

China’s Innovation New Material is investing in a new plant in Mexico, focusing on producing aluminum alloy materials for automobiles. This expansion aims to strengthen the company’s position as a global supplier of lightweight auto aluminum alloy materials.

GLOBANT

Argentinian company Globant plans to invest $1 billion in Latin America over five years, aiming to hire 20,000 professionals across the region, including Mexico. The company will focus on AI-based products and technologies, fostering high-skilled and high-paying job creation and innovation.

NORTHEAST

FRISA

Mexican company Frisa invests $200 million in Nuevo Leon, creating 900 jobs and expanding aerospace and steel production. SpaceX collaboration and potential automotive industry involvement contribute to its growth plans.

VISHAY

American company Vishay inaugurates a semiconductor plant in Gomez Palacio, Durango, with a $45 million investment, creating 500 jobs, it is also mentioned that some are high-paying jobs. This boosts local economy and manufacturing sector growth.

XIGNUX

Mexican firm Xignux embraces Nearshoring prospects in Nuevo Leon, anticipating positive effects on their sustainable energy-related manufacturing. With a $250 million 2023 investment, they’re preparing for growth and tackling infrastructure constraints.

CENTRAL MEXICO

COPENHAGEN INFRASTRUCTURE PARTNERS

Danish fund CIP to establish a green hydrogen plant in Mexico’s Oaxaca region, supplying fuel for Pacific coast ships. The move follows President Lopez Obrador’s invite to President Biden. CIP’s involvement highlights their renewable energy commitment.

CDMX

SCALA DATA CENTERS

Brazil’s Scala Data Centers is investing $80 million in its first Mexican data center, creating high-paying jobs. The Tepotzotlan-based center, operating on renewable energy, aligns with a major Hyperscale client and is set to launch in Q4 2023. This expansion strengthens IT infrastructure in Mexico.

SOURCES: CLUSTER INDUSTRIAL, EL FINANCIERO, TEKIOS MAG, DATA CENTER DYNAMICS, YICAI GLOBAL, H2 BUSINESS NEWS