Anirban Ghoshal
Senior Writer

Oracle bolsters distributed cloud, AI strategy with new Mexico cloud region

Sep 26, 20233 mins
Cloud ArchitectureCloud ComputingGenerative AI

The second cloud region in Monterrey, providing over 100 OCI services, is part of Oracle's plan to compete with AWS, Google and Microsoft, and cash in on enterprise interest in generative AI.

technician evaluating cloud performance
Credit: Shutterstock

Oracle has partnered with telecommunications service provider Telmex-Triara to open a second region in Mexico in an effort to keep expanding its data center footprint as it eyes more revenue from AI and generative AI-based workloads.

Earlier this month, the company said it expects cloud revenue to grow 29% to 31% in the second quarter of 2024, driven by high demand for AI and generative AI workloads from enterprises.

This demand in AI and generative AI workloads, according to co-founder CTO Larry Ellison, will sustain itself as enterprises continue feeding data to AI engines or models to keep them up-to-date or relevant, which in turn will create demand for Oracle’s offerings for model training, inferencing, and grounding.

The company followed up its bet on generative AI workloads by announcing several generative AI-led offerings at its annual CloudWorld conference last week.   

The company, which has iterated its intent to expand its data center footprint to compete with larger cloud service providers, last year said that it was planning to invest $2.4 billion quarterly in cloud infrastructure.

In December last year, Oracle launched a public cloud region in Chicago. That launch was followed by the opening of a new data center in Singapore and Serbia within months.

Monterrey region to provide Telmex value-added services

The new region in Mexico, in Monterrey, is part of Oracle’s distributed cloud strategy, under which the company provides a managed open source database service available across multiple clouds for transaction processing, analytics, and machine learning workloads.

Oracle said that it has partnered with Telmex to formulate a joint go-to-market strategy in order to deliver OCI services along with the latter’s value-added services.

Telmex is providing the data center space to host the Oracle Cloud Monterrey Region and will provide its sales force for a joint go-to-market strategy.

OCI services currently being offered in the region include over 100 Oracle Cloud Infrastructure (OCI) services, such as Oracle’s Autonomous Database and MySQL HeatWave, among others.

The launch of the new region (mx-monterrey-1), which has one availability domain, takes Oracle’s total cloud region tally to 46.  The first region in Mexico is based at Querétaro.

Other data centers in the North America region include four commercial regions in the US and two such regions in Canada. The company also runs five separate government regions out of the US.

Rival cloud service providers such as Google, IBM and AWS have no public cloud regions in Mexico. Microsoft’s portal claims that a new data center is being planned in Querétaro.

Oracle’s Monterrey region customer includes Christus Muguerza, Copayment, Corporación Inmobiliaria Vesta, Convergencia Tecnológica de Occidente, and Quicklearning among others.