WEG will invest USD 250 million in Mexico amid the boom in data centers

Brazilian multinational WEG announces a $250 million investment in Mexico through 2030 , aimed at expanding its industrial capacity to manufacture generators, transformers, electric motors, and energy storage solutions. The project includes a new plant in Hidalgo and seeks to address the growth of data centers and artificial intelligence.

The expansion is expected to create 2,000 direct jobs and another 4,000 indirect jobs , with the goal of supplying both the Mexican and North American markets. This initiative comes at a time when the electricity demand from data centers could reach 1,730 megawatts (MW) by 2031 , according to projections from the Mexican Data Center Association (MEXDC).

The announcement was made during a conference led by the President of Mexico, Claudia Sheinbaum Pardo , along with the Secretary of Economy, Marcelo Ebrard Casaubón , and representatives of WEG, including Daniel Godinho , the group's global vice president of Sustainability and Institutional Relations.

"Behind all this digital revolution lies a fundamental need for reliable, efficient and robust energy infrastructure: technology needs energy and energy needs industry," Godinho stated.

The new investment seeks to expand the production of equipment used in the generation, transformation and distribution of electricity, as well as in systems that require high levels of operational continuity.

In particular, data centers demand electrical infrastructure to support the operation of servers, cooling systems, communication equipment, and processing platforms linked to artificial intelligence.

"WEG's new investment is precisely aimed at responding to this demand through the manufacture of strategic electrical equipment for data centers, integrating Mexico into this strategic industrial chain," the executive explained.

The projected growth for this market allows the company to scale its strategy. According to a study prepared by DCD Intelligence and IDC for MEXDC , the electricity requirements of Mexican industry will increase from a base of 279 MW to 1,730 MW in 2031 , representing an expansion of more than six times.

In an interview published by Energía Estratégica , Adriana Rivera Cerecedo , executive director of MEXDC, anticipates the addition of 205 MW towards the end of 2026 and an equivalent amount during the first quarter of 2027.

"By the first quarter of 2027, we expect to have an equal amount of energy transmitted to the data centers that requested demand," Rivera Cerecedo noted.

Both blocks represent 410 MW of planned electrical capacity , equivalent to 23.7% of the projected demand by 2031. However, the completion of the remaining projects will depend on the availability of infrastructure and the conditions of connection to the national electrical system.

Sector projections also include an estimated economic impact of $82.5 billion and more than 133,000 jobs associated with the construction and operation of data centers over the next few years.

However, MEXDC clarifies that this economic estimate does not correspond to a portfolio of projects with individually committed investments.

Meanwhile, a survey released by Energía Estratégica in January 2026 had identified a potential demand of 1.5 gigawatts (GW) by 2030 and the possibility of mobilizing more than $18 billion in investments over five years.

Both estimates are based on different timeframes and methodologies, but they agree in pointing to an expansion of the electrical infrastructure needs of the Mexican technology sector.

WEG strengthens its presence in Mexico with a new plant and 6,000 jobs

WEG's decision also reflects its strategy to deepen local manufacturing of industrial equipment and reduce dependence on imported components.

The company has been operating in Mexico for more than 25 years and currently has more than 6,000 employees, 400 engineers, four industrial parks and a network of more than 500 distributors .

Over the past few years, the group has accumulated investments of nearly $400 million , intended to serve more than 2,000 local customers and develop exports to more than 30 markets.

At an international level, WEG has more than 50,000 employees, 69 industrial plants in 18 countries and a commercial presence in more than 135 markets .

Godinho emphasizes that the industrial expansion will allow the development of manufacturing capabilities and further the training of specialized workers.

"Furthermore, WEG manufactures 100% of the equipment it produces here in Mexico; we don't import for assembly, we are a very vertically integrated company," the executive stated.

The company identifies electric generators and transformers, motors, and energy storage systems as the main components of its expansion.

These latter factors become relevant in light of the need to improve the continuity and resilience of supply, particularly in facilities where power outages pose operational risks.

"With this investment we will be able not only to supply national demand (driven by the growth rates of data centers), but also to export to the external market, especially to North America," he added.

Mexico's regional positioning is also supported by the costs of building digital infrastructure.

According to the Data Center Construction Index 2026 , prepared by Turner & Townsend and disseminated by Data Center Dynamics , Monterrey ranks 23rd among the surveyed markets, with an average construction cost of $12.41 per watt of installed capacity .

For its part, Querétaro is in 32nd position, with $11.49 per watt , below the $15.01 recorded in Silicon Valley and the $11.80 of Northern Virginia.

The indicator compares construction costs per unit of installed capacity, not electricity rates. Its methodology uses a 60 MW data center as a reference.

However, the competitiveness of both markets coexists with challenges of energy availability and access to specialized personnel.

The Turner & Townsend survey, based on more than 500 projects and a survey of more than 400 specialists, identifies that 56% of those consulted consider the electricity supply a critical obstacle .

In addition, 52% indicate that network procedures and connections usually take between one and two years, while 32% report timeframes exceeding 24 months.

Added to these difficulties is the availability of human resources: 81% of the specialists surveyed identified moderate or severe limitations in incorporating highly qualified workers.

In this way, the expansion of the electrical industry and the availability of equipment become relevant to accompany new technological developments.

WEG's $250 million investment is also linked to the Mexican government's plans to expand electricity transmission and distribution infrastructure, in a context of growing industrial and technological demand.

During the presentation of the project, President Claudia Sheinbaum Pardo highlighted the magnitude of the resources allocated to strengthening the national electricity networks.

"The investment we are making in transmission and distribution is historic: between two and three times the investment of previous six-year terms in lines and substations of electrical transmission and distribution," the president stated.

In this regard, Sheinbaum points out that domestic manufacturing of transformers and other electrical components will support new infrastructure projects and reduce the need to import equipment. WEG's plant in Hidalgo will complement existing production in Nuevo León.

For his part, the Secretary of Economy, Marcelo Ebrard Casaubón , emphasizes the role that the company will play in supplying infrastructure for new industrial and technological projects.

"They are a key company for Mexico, for the expansion of industrial activity, data centers, artificial intelligence; everything that implies economic growth goes through this type of equipment," the official maintains.

"Data centers will grow exponentially, and with them the required energy infrastructure," says Daniel Godinho , global vice president of Sustainability and Institutional Relations at WEG.

The executive clarifies that the company's strategy will not be limited to data centers, but will also allow it to meet the needs of the Mexican energy sector and expand exports to North America.

In this way, WEG plans to expand its manufacturing capacity until 2030 , with the aim of supplying the demand for electrical equipment linked to industrial expansion, investments in transmission and distribution and the development of technological infrastructure in Mexico.