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SEATTLE – Amazon Web Services (AWS), the cloud computing division of Amazon.com, Inc. (NASDAQ:), announced it will launch an infrastructure region in Mexico by early 2025. The move is part of the company's long-term investment. His strategy in Latin America is expected to exceed $5 billion over the next 15 years.
The new AWS Mexico (Central) Region is aimed at providing local customers, including governments and nonprofit organizations, with lower latency and the option to store data within the country. The upcoming region will consist of three Availability Zones at launch, contributing to AWS' global footprint of 105 Availability Zones across 33 geographic regions.
The creation of the AWS Mexico Region responds to the high demand for cloud services in Latin America and will support the country's digital transformation and economic growth. This enables the deployment of advanced technologies such as artificial intelligence (AI) and machine learning to help customers meet their data-resident environment preferences.
Mexico's Economy Minister Raquel Buenrostro welcomed the investment as a sign of confidence in Mexico's ability to support the nearshoring trend. The investment is also expected to facilitate the training of students and digital entrepreneurs in the country.
Several Mexican companies have expressed support for new AWS Regions, recognizing the potential to enhance their operations. Aeromexico, Santander bank (BME:) Vector Casa de Bolsa, Cinépolis, Mexico, is one of the companies looking to improve performance and customer experience with expanded local infrastructure on AWS.
AWS' commitment to Mexico includes previous investments such as the launch of seven Amazon CloudFront edge locations, AWS Outposts, AWS Local Zones, and an AWS Direct Connect location in Queretaro. These efforts are aimed at bringing AWS services closer to end users and supporting hybrid cloud environments.
In line with its commitment to sustainability, Amazon, the parent company of AWS, aims to achieve net zero carbon across its operations by 2040 and to power its operations with 100% renewable energy by 2025. We are working towards this goal. AWS also aims to become water positive by 2030.
This announcement is based on an Amazon Web Services press release statement.
Investment Pro Insights
As Amazon.com, Inc. (NASDAQ:AMZN) prepares to expand its cloud infrastructure in Mexico, the company's financial health and market performance remain critical to its ambitious growth plans. According to InvestingPro's real-time data, Amazon boasts a massive market capitalization of $18,200 billion, indicating its significant presence in the market. The company's commitment to innovation and expansion is also reflected in its revenue growth, which grew by an impressive 11.83% over the past 12 months as of Q4 2023.
According to InvestingPro Tips, investors are focused on Amazon's earnings, with 23 analysts raising their earnings estimates for the next fiscal year. This optimism is reflected in the company's strong returns over the last year, with an impressive total price return of 87.16%. These factors are essential for parties considering Amazon's strategic investments, such as its new AWS Mexico region, which promises to improve the company's service offerings and customer experience in Latin America.
Amazon trades at a high P/E ratio of 59.43 times earnings, which indicates high market expectations for the company's future growth. The company's position as a prominent player in the Broadline retail industry and solid revenue numbers, with revenue of $574.78 billion in the trailing twelve months as of Q4 2023, sustains its expansion efforts. It gives you more confidence in your ability to utilize it.
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