MONTERREY, Mexico — Nvidia Corp. denied plans to invest $1 billion in the northern Mexican state of Nuevo Leon, hours after Governor Samuel Garcia announced the technology giant would build a green data center there.
The clarification comes amid confusion over the scope of the project and the role of Nvidia in local technological development. In a statement to Reuters on Wednesday, the US chipmaker said, “Nvidia does not have financial investment plans in Nuevo Leon.
The company’s support for digital transformation and technological progress in Latin America is based exclusively on cooperation initiatives, research and talent development.”
Earlier on Wednesday, Garcia had posted a video on social media alongside representatives he identified as Nvidia officials, announcing that the company would spend $1 billion on a so called green AI data center in Nuevo Leon.
The project, according to the governor, would focus on artificial intelligence and renewable energy technologies. However, local media later reported that Garcia had corrected the claim, explaining that the planned investment would be made by Mexico based CIPRE Holding and would utilize Nvidia technology rather than direct Nvidia capital.
The misunderstanding highlights the growing interest in northern Mexico as a hub for technological infrastructure, with several states seeking to attract AI and green energy projects.
Nuevo Leon, home to Monterrey, has positioned itself as a center for digital innovation and industrial development in Latin America.
“Announcements like these can sometimes be premature, especially when technology partners are involved but not directly investing,” said Mariana Lopez, a technology industry analyst based in Mexico City.
“It’s common for governments to highlight corporate involvement, but that doesn’t always mean direct financial commitment from the foreign company.”
She added that Nvidia’s role in AI initiatives globally often focuses on providing hardware, software, and research collaborations rather than direct capital investment.
Nvidia supports talent development and innovation across Latin America, which is valuable, but it’s distinct from committing a billion dollar investment, Lopez said.
Similarly, Eduardo Ramirez, a senior economist at Monterrey’s Tecnologico Institute, said, “Mexico’s tech ecosystem benefits from access to advanced technologies even without direct foreign capital.
Companies like CIPRE Holding leveraging Nvidia systems can still drive substantial local growth.” According to regional development data, Nuevo Leon has attracted over $3 billion in foreign direct investment (FDI) for industrial and technological projects in the last five years, primarily in manufacturing and energy sectors.
By comparison, direct US technology investments in northern Mexico remain relatively modest but are growing. For instance, Microsoft and Amazon have established AI focused data centers in Mexico City and Querétaro in recent years, each with investment estimates below $500 million.
Analysts note that the presence of Nvidia technology through partnerships, even without direct investment, could accelerate similar digital initiatives in Nuevo Leon.
Local business owners expressed cautious optimism about the potential AI data center. “Any project that brings advanced computing technologies to the region is welcome,” said Laura Torres, owner of a Monterrey software startup.
“Even if Nvidia isn’t investing directly, having access to their systems can help us develop new products and services.” Residents in nearby communities were more skeptical.
“We hear announcements like this all the time, and they rarely materialize as promised,” said Javier Morales, a civil engineer in Monterrey. “What matters is whether these projects actually create jobs and opportunities locally.”
Government officials emphasized that collaboration between local firms and global technology providers is part of a broader strategy to boost Nuevo Leon’s competitiveness.
“Our goal is to foster innovation and attract skilled talent, not merely headline foreign investment figures,” said Carla Mejia, a state economic development spokesperson.
While Nvidia has clarified it will not provide direct funding, the partnership with CIPRE Holding and use of Nvidia technology could still catalyze Nuevo Leon’s digital transformation.
Analysts suggest that Mexico’s AI and green energy sectors are likely to see incremental growth through such collaborations rather than large scale corporate investments.
“The project could be a blueprint for future public private cooperation in Mexico,” said Lopez. “By combining local investment with advanced technology partnerships, states like Nuevo Leon can build sustainable innovation ecosystems without relying solely on billion dollar foreign commitments.”
Nvidia’s denial of a direct $1 billion investment in northern Mexico underscores the complexity of corporate-government announcements and the distinction between technology partnerships and financial commitments.
While the green AI data center will proceed under Mexico’s CIPRE Holding using Nvidia technology, the clarification highlights the importance of accurate reporting and public communication regarding foreign investment initiatives.
The incident also reflects broader trends in Latin America, where governments are increasingly leveraging global tech companies’ expertise to boost digital innovation without necessarily securing direct financial investment.