MEXICO CITY, Mexico: In response to growing demand for cloud services as more firms adopt new technologies, Amazon Web Services Mexico (AWS), a unit of Amazon.com, said this week it would invest over US$5 billion to build several data centers in Mexico.

In an interview with Reuters, Ruben Mugartegui, head of Amazon Web Services Mexico unit, said the data centers will be built in the Mexican state of Queretaro, and the investment will be spread over the next 15 years.

The company, which currently serves clients such as Mexican theater operator Cinepolis, stock exchange BIVA, airline Aeromexico, and local governments, has been working on this project for more than five years, he added.

Mugartegui said that cloud computing provides companies with access to technology services, such as storage and databases, through the internet, removing the need to own and maintain physical data centers and servers.

He stressed that companies can cut technology costs by around 20 percent when they use AWS.

Since arriving to Mexico in 2015, Amazon has invested over 52 billion pesos ($3.04 billion) in the country.

The Mexican government has been trying to lure companies to invest in the country with various initiatives, such as granting tax incentives for firms wishing to move operations to Mexico.