Microsoft Querétaro AI data centre linked to water shortages, power outages, illnesses
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Occurred: 2024-
Page published: October 2025
A huge Microsoft data centre in Querétaro, Mexico, has been associated with increased water shortages, power outages, health and other problems for nearby residents, despite company denials.
What happened
What happened
Local residents report suffering weeks-long water outages resulting in school closures and frequent power cuts disrupting medical treatment since Microsoft opened its AI data center in Querétaro mid-2024.
A local doctor cited a case where a patient had to be rushed to a distant hospital due to power failure preventing oxygen treatment. And the shortage of clean water led to a hepatitis outbreak in summer 2025, and residents pay for private water trucks amid ongoing supply instability.
Power surges are also reportedly causing food spoilage and damage to personal devices.
These events coincide with a massive data centre boom in the region, where water use for cooling and electricity demand strain already limited infrastructure in a notoriously drought-prone area.
Why it happened
Why it happened
The rapid construction of data centres as AI infrastructure drives massive electricity and water consumption. Querétaro suffers from a persistent drought and water rationing worsened by land use changes.
Microsoft and other companies have not disclosed precise water or energy usage, and environmental oversight and transparency are limited, raising accountability concerns.
Tax exemptions for data centres and lenient regulations attract investment but exacerbate resource competition with local communities.
Microsoft denies it's data centre's role in utility problems. However, local officials question the power grid's capacity and report mounting conflicts.
What it means
What it means
The situation reflects a broader issue in which the expansion of AI technology infrastructure in regions with fragile utilities imposes significant social and environmental costs disproportionately on vulnerable populations - a dynamic that fuels widespread mistrust towards companies and governments prioritising economic growth over local well-being.
The tension in Querétaro serves as a warning for ongoing and future AI infrastructure development across the world, and emphasises the need for meaningful engagement with and protections for local communities, sustainable resource management, and real transparency and accountability.
System 🤖
System 🤖
Developer: Microsoft
Country: Mexico
Sector: Multiple
Purpose: Train and operate AI systems
Technology: Generative AI
Issue: Accountability; Environment; Transparency
Investigations, assessments, audits 👁️
Investigations, assessments, audits 👁️
New York Times. From Mexico to Ireland, Fury Mounts Over a Global A.I. Frenzy
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Research, advocacy 🧮
News, commentary, analysis 🗞️
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https://observatorioglobal.udlap.mx/fury-mounts-over-global-ai-frenzy-as-data-centers-strain-resources/
https://www.tomshardware.com/tech-industry/microsoft-denies-mexico-data-center-linked-to-water-shortages-local-illnesses-and-power-outages-stomach-bugs-and-even-hepatitis-reported-in-region-as-1-5-gigawatt-ai-data-center-buildout-looms
AIAAIC Repository ID: AIAAIC2086
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