Investor Letter 2026-2027
Balancing Water, Tech, and Communities in Mexico and expanding this success into the United States.
In the heart of Mexico, a new story is unfolding – one of innovation, partnership, and resilience.
On the sun-baked plains of central Mexico, data centers and factories are rising from arid soil, even as nearby communities grapple with drought. Where some see an inevitable clash between high-tech growth and scarce water, we at Swendoza see a chance to prove that progress and sustainability can thrive hand in hand.
Our mission is simple yet ambitious: to ensure that as industry flourishes, local communities and resources flourish too. We are building a platform of trust – uniting tech giants, government leaders, investors, and rural families in a common cause. Together, we can secure a future where everyone benefits from development, where no one is left behind.
A Land of Ambition Amid Scarcity
Across Mexico’s Bajío region, a remarkable convergence is happening. Querétaro has become a hub for data centers, with industry leaders like Amazon, Microsoft, and Google investing billions into new facilities. “Datacentres are the lungs of digital life,” as Amet Novillo of Equinix vividly put it – they are essential infrastructure for the modern world. The government celebrates this tech boom as a driver of jobs and growth. Yet it arrives in a land of water stress.
Querétaro has endured severe drought conditions, with aquifers over-tapped by decades of expansion and even electrical blackouts during peak demand this past summer. An aqueduct completed in 2011 (Aqueduct II) to supply the growing city is already insufficient in dry seasons. Communities worry what will happen when these “gargantuan” server warehouses demand water and power from an already strained grid.
But it’s not just data centers in one state – the entire region is booming with global investment.
In the neighboring state of Guanajuato, for example, 26 new projects were announced in 2024 alone, totaling roughly $4.3 billion and promising over 12,000 jobs. These span automotive factories, food processing plants, logistics centers, and more. Major U.S. companies like PepsiCo (building its first new Mexican plant in 20 years, a $109 million facility in Celaya) and Walmart (with a $500 million high-tech distribution hub in Silao) have joined the wave. Japanese automakers and suppliers – Toyota upgrading its Guanajuato plant for new hybrid trucks, Mazda expanding in Salamanca, Honda and parts makers like Yusei – are deepening their roots. European investors such as Ferrero (which expanded its chocolate plant) and Whirlpool have added new production lines. Chinese manufacturers are also arriving: Sailun’s partner Aztema just opened a fully automated $400 million tire factory in Irapuato, and Sinoboom launched a $150 million heavy equipment plant in Silao. Guanajuato’s new investments now come from the United States, China, Japan, Italy, France, Taiwan and beyond – a truly international influx.
This surge of industry is transforming central Mexico into a global economic hotspot, bringing prosperity and opportunity. It also intensifies the question on everyone’s mind: Where will the water and energy come from? Locals fear a scenario where gleaming new factories or data centers get preferential access to resources, while nearby towns face dry taps. Those fears are legitimate – but they do not have to come true. We see a better path: one where technology and communities grow together, each strengthening the other.
Bridging Technology and Sustainability
At Swendoza, we believe corporate investment can become a force for environmental innovation. Rather than viewing water limits as a threat to growth, we treat them as a catalyst for smarter design and community collaboration. Our vision is to turn places like Querétaro and Guanajuato into showcases of green infrastructure – proving that even in water-scarce regions, industry can expand sustainably and even improve local conditions.
How is this possible? By demanding and implementing cutting-edge solutions at every step. Take water usage: traditional cooling for servers or industrial processes can gulp down millions of liters of fresh water, evaporating it away. But modern engineering offers a better way. Closed-loop cooling systems reuse the same water again and again, instead of constantly drawing new supplies. In fact, studies show that over 95% of data centers in Mexico already use air-based or closed-loop cooling that recirculates water, minimizing their water footprint. Querétaro officials report that most new data facilities are embracing these designs. Consider the scale: a typical 1 MW data center might consume about 25 million liters of water per year with old methods. With an expected 600 MW of data capacity in the pipeline, that could have meant 15 billion liters annually – roughly 13% of the region’s total water use. Instead, if all those centers use closed-loop or air-cooled systems, nearly all that water will be recycled internally, not taken from the community. Equinix, for example, boasts that its Querétaro sites connect to the city supply but run in a “100%” closed system – continually reusing water so that their consumption is akin to an ordinary office building. These are the standards we champion. We require any project we back to adopt water-efficient cooling by default.
Some innovators go even further. Amazon, for instance, has pledged to become “water-positive” by 2030 – meaning it will return more water to communities than it uses. In Querétaro, anticipating local concerns, Amazon carefully analyzed the climate and water availability before building and chose an air-cooled data center design that doesn’t need continuous water for cooling. This kind of foresight is invaluable. We encourage such water-saving designs not only for data centers but for factories and plants too. Every facility – whether a snack factory, a steel mill, or a tire plant – can invest in things like advanced recycling systems or rainwater harvesting for non-potable uses. And if a big company breaks ground in a town, it should help make the water situation better than it found it. That means corporate social responsibility in action: funding new wells or water treatment facilities, helping farms install efficient irrigation, or supporting household water access projects. When a PepsiCo or Toyota comes to town, it should leave a legacy of cleaner water and stronger infrastructure as part of its investment.
Energy is the other side of the coin – especially since saving water by using air chillers or closed loops can mean using more electricity (to run cooling equipment). We confront this challenge head-on by pushing for renewable power integration at every opportunity. Right now about 75–77% of Mexico’s electricity is generated from fossil fuels, much of it in water-intensive thermal plants. If data centers and new factories simply draw from the grid, an increase in electric demand could indirectly mean more water consumption (to cool power plants) and more carbon emissions. The solution, as one expert put it, is clear: “Big solar, big batteries, 100% renewables, 100% of the time – problem solved.”.
We know this ideal won’t be achieved overnight, but it is precisely the direction we aim for. Whenever a new large power user is planned, we advocate pairing it with investments in local clean energy – solar farms, wind turbines, battery storage – so that the facility can eventually run on Querétaro’s abundant sunshine and the region’s breezes instead of distant coal or gas plants. On-site generation or dedicated renewable projects not only cut carbon and water use, they also relieve pressure on the national grid. Global tech firms are increasingly on board with this approach. Google, for example, has stated that its new cloud region in Querétaro will support its worldwide goal of operating on 24/7 carbon-free energy and 100% renewables. We will hold them to that promise – and actively assist in turning those words into reality on the ground. By aligning corporate sustainability pledges with regional needs, we transform lofty commitments into tangible megawatts of green power.
Ultimately, our model is a virtuous cycle: data centers cooled by recycled water and powered by solar; factories that use renewable energy and return clean water to communities; companies funding local utilities upgrades as part of doing business – all while creating jobs and transferring knowledge. This is not utopian – it’s happening in pieces today, and with collective will we can make it the new standard. Early steps by forward-thinking firms show what’s possible; our job is to make it the norm.
A Collaborative Path Forward
None of these ambitions can succeed in a vacuum. Real, lasting change requires a coalition of all stakeholders. Swendoza is committed to convening and working with everyone – communities, companies, and government at every level – to ensure sustainable development is baked into every project from day one. Our strategy is comprehensive and inclusive:
Engaging Political Leadership (Local & National)
Water and infrastructure shouldn’t be partisan footballs, but a shared priority. Nationally and locally, we engage authorities and legislators – including members of all political parties – to show how our sustainable approach aligns with Mexico’s broader goals on climate and development.
For instance, we are calling for Mexico to adopt transparency rules similar to Europe’s upcoming regulations, which will require data centers to publicly report their water and energy usage. By securing multi-party buy-in, we aim to embed sustainability and openness into the policy framework – rules that outlast any one administration and give communities confidence that their needs won’t be overlooked.
Community Partnerships and Social Investment
The people who call these regions home are not obstacles to development – they are our essential partners. Every project we undertake includes a formal Community Benefits Agreement that is shaped in collaboration with local residents. This might mean a new village well, upgrades to an irrigation system, a water purification plant, or job training programs funded by the investor – whatever addresses the community’s pressing needs. Local knowledge guides us: residents often know exactly where the water lines leak, which schools need support, or which creek used to provide water until it ran dry.
By listening to them, we target investments for maximum impact. We also guarantee that locals have a seat at the table throughout the project’s life. Advisory councils and participatory planning committees will monitor water and energy use jointly with us and the companies. We build real-time data transparency portals so that any citizen can see exactly how much water and power each facility is using, day by day.
This honors the spirit of agreements like Escazú, which asserts the public’s right to environmental information. No secrets, no surprises – just shared facts. If a company finds ways to save more water or energy, that progress will be visible to all, building public trust that the tech boom is not a threat but a neighborly asset. And if there’s a shortfall or issue, we address it together openly. This approach turns potential conflict into collaboration.
Industry Innovation and ESG Commitment:
We actively seek out investors and companies who embrace strong Environmental, Social, and Governance (ESG) values. In Mexico’s dry corridor, we make it clear: only the responsible will prosper in the long run. Working with environmental experts and the firms themselves, we have developed clear sustainability guidelines for operating in water-scarce areas. These include using closed-loop or air-cooled systems, integrating on-site renewable energy or signing power purchase agreements for green power, controlling emissions from backup generators, and planning for end-of-life recycling of water and materials.
Companies that meet or exceed these standards can often be fast-tracked for permits and celebrated publicly; those that refuse will face scrutiny and delay. Fortunately, many industry leaders already understand that being a “good actor” is just good business – it prevents backlash, reduces regulatory risk, and appeals to global investors who are increasingly wary of environmental liabilities. We aim to foster a healthy competition to be the greenest. To that end, our upcoming Green Industry Index will publicly rank data centers and factories on sustainability metrics, from water efficiency to community contributions. Imagine an index that shines a light on those contributing the most to the community and environment – nudging others to up their game. When corporations’ desire to be seen as green and responsible drives ever higher standards, everyone wins.
We’ve seen, for example, in Chile how community pressure turned a planned data center into a catalyst for change: the company was pushed to set a higher bar, and legacy polluters around it felt pressure to improve. We want to replicate that dynamic – here in Mexico and wherever we operate.
Infrastructure Upgrades and Water Security:
Finally, we take a holistic view of water and energy infrastructure. It’s not enough to make each new facility efficient; we must also strengthen the broader system that supports both industry and people. We support government initiatives to diversify water sources – such as new reservoirs or aqueducts – so long as communities benefit at least as much as industry. We actively explore public-private partnerships to fund projects like wastewater treatment plants that can supply recycled water for industrial cooling (freeing up fresh water for households and farms), and reforestation of watersheds to improve aquifer recharge. By pooling investments from tech companies, local governments, and international climate finance, we can multiply the impact and build resilience.
The message to rural communities is clear: the arrival of a data center or factory will bring tangible improvements to your water and power services, not strain them. We’ve proposed, for instance, that companies “adopt” nearby villages in water stewardship programs – committing resources to fix leaks, install rainwater collectors, or deliver emergency water during droughts. When an AWS or Google or Toyota steps up to ensure “water for people and for industry,” the whole notion of progress changes. It’s no longer a zero-sum game of jobs vs. water – it becomes a story of shared investment in a better future.
A Vision of Shared Prosperity
What do we see at the end of this journey? We see data centers humming reliably without draining their communities dry. We see new factories and plants thriving without depriving farmers of water. We see rural families with better access to clean water than they had before the tech giants arrived. We see young people in those villages learning skills and landing good jobs at these new facilities, rooting the digital and industrial economy in local soil. We see politicians across party lines proudly pointing to Querétaro and Guanajuato (and beyond, as these practices spread nationwide) as proof that economic development and environmental stewardship can go hand in hand. And we see investors and companies reaping healthy returns not by skirting social responsibility, but by embracing it – demonstrating that sustainability and profitability can thrive together.
Our narrative is optimistic because we genuinely believe in the power of collaboration to solve even the toughest problems. Water scarcity and technological growth need not be enemies. With transparency, innovation, and goodwill, they can become partners. Mexico stands at this crossroads, but we have the strategy, the stakeholder alignment, and the resolve to choose a path where everyone coexists and benefits. In this new chapter, communities are not roadblocks to progress – they are co-authors of it. Investors are not just funders – they are enablers of a better future on the ground. Governments are not mere referees – they are champions setting fair rules and ensuring they’re followed.
Together, we are writing a story of resilience and shared prosperity. The data centers and factories rising in central Mexico will power the world’s digital and industrial life – but they will do so while nourishing local life. They will honor the land’s limits, respect people’s rights to water and clean air, and contribute to a future where technology and humanity advance side by side, hand in hand.
This is the Mexico we strive to build – and the model we hope to expand internationally, including in the United States and beyond. It’s a vision where drought, development, and dignity are addressed as one; where progress leaves no one behind; and where a balance is struck so elegantly that what once looked like an impending crisis becomes a benchmark for the world. It is an ambitious vision – but by working together, it is within our reach. We invite all who share these values to join us. Let’s prove, here and now, that growth can be green, and that trust and cooperation are the foundation of true prosperity.