Nvidia announced a $1 billion investment to build a green AI data center in Nuevo León, Mexico, with the facility slated to focus on AI workloads and to be operational by 2026.
The investment follows Nvidia’s Q1 FY2026 earnings, in which revenue rose 69% year‑over‑year to $44.1 billion, largely driven by a 73% increase in data‑center revenue to $39.1 billion. Gross margin for the quarter was 60.5% GAAP, but a $4.5 billion charge related to U.S. export restrictions on China reduced the reported margin; the non‑GAAP margin would have been 71.3%. The strong revenue and margin performance underscore the continued demand for Nvidia’s AI infrastructure and the company’s ability to maintain profitability even amid regulatory headwinds.
Strategically, the new data center expands Nvidia’s presence in Latin America and diversifies its portfolio in response to the U.S. export ban that has curtailed sales of its H20 platform in China. The company’s CEO, Jensen Huang, noted that “global demand for NVIDIA’s AI infrastructure is incredibly strong,” and that the expansion into Mexico is part of a broader plan to tap new markets while reinforcing the company’s sustainability commitments. The facility will be built to green‑energy standards, aligning with Nvidia’s broader environmental strategy, though specific renewable‑energy or cooling technologies have not yet been disclosed.
Huang added that the investment is “a key step in securing a foothold in the Latin American market and ensuring that Nvidia can continue to deliver high‑performance AI solutions to hyperscalers and enterprises worldwide.” The announcement signals confidence in sustained AI demand and the company’s capacity to scale its data‑center operations globally.
The project is expected to create jobs in the region, supporting local economic development, and it reinforces Nvidia’s long‑term growth trajectory by adding a new, high‑density AI cluster to its global network. The investment demonstrates the company’s commitment to expanding its infrastructure footprint while navigating geopolitical constraints and maintaining a leadership position in the AI chip market.
Overall, the $1 billion commitment reflects Nvidia’s strategy to capitalize on robust AI demand, diversify its geographic exposure, and reinforce its sustainability and operational excellence goals, positioning the company for continued growth in the coming years.
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