Flex Initiates Billion Dollar Expansion to Anchor AI Infrastructure in Mexico

Manufacturing giant Flex is investing $1 billion over two years to scale AI infrastructure and data center production in Mexico, creating 5,000 new jobs.

By: AXL Media

Published: Apr 21, 2026, 9:28 AM EDT

Source: Mexico News Daily

Scaling Data Center Production in Guadalajara

The core of this investment will be concentrated in Guadalajara, where Flex already operates a primary hub for data center equipment. According to Guillermo del Río, Flex’s senior director of business development, the new funds will enable the facility to manufacture, assemble, and test the highly complex systems that power global cloud computing. This expansion is expected to create 5,000 new high-tech jobs, adding to the company’s existing Mexican workforce of 40,000 across eight plants.

The scale of the Guadalajara operation is underscored by its massive energy requirements. Testing advanced AI and server equipment is a power-intensive process; the Guadalajara plant is projected to consume seven times the energy required by the port of Manzanillo. This concentration of technological infrastructure reflects a growing global demand for telecommunications and AI-driven data processing capabilities.

Strengthening the Domestic Supply Chain

A key objective of the $1 billion injection is the localization of the supply chain. While Flex currently sources metals and plastics from within Mexico, the company remains heavily dependent on external sources for electronic components. The new investment seeks to bridge this gap by attracting and developing local suppliers, moving Mexico further up the value chain from basic assembly to sophisticated high-tech production.

Economy Minister Marcelo Ebrard highlighted that this development is not merely about physical space but about "high-tech manufacturing" capabilities. By integrating design, engineering, and supply chain services within the country, Flex is deepening a four-decade-long presence that has already seen $2.3 billion in investment over the last ten years. This latest move represents the company’s largest single investment in Mexico since it began operations 40 years ago.