(Reuters) -Salesforce ( CRM ) said on Wednesday it would spend $1 billion in Mexico over the next five years, as the cloud software provider looks to expand its operations and drive artificial intelligence adoption.

The company, which began operating in Mexico in 2006, said the investment will fund a new Mexico City office and a Global Delivery Center to support customers across the Americas.

"This $1 billion investment is a commitment to Mexico as a key market for AI-powered growth," CEO Marc Benioff said.

Mexico is rapidly emerging as a tech services hub, drawing investments from technology companies, particularly in the AI domain due to the country's proximity to the U.S. and growing talent base.

Microsoft ( MSFT ) announced last year that it will spend $1.3 billion over the next three years to build up its infrastructure in Mexico for cloud computing and AI.

Salesforce ( CRM ) said Mexico is a growth market for the company, with a customer base including organizations such as Xcaret, Grupo Bafar and FEMSA.

"This investment will not only create jobs and build AI skills within Mexico but will also position our country as a key consultancy hub for markets across Latin America on AI agents and more," Mexico's Economy Minister Marcelo Ebrard said.

Last month, Salesforce ( CRM ) forecast third-quarter revenue below Wall Street estimates. The company had also announced a $20 billion increase to its existing share buyback program.

Salesforce ( CRM ) has rolled out AI across its cloud services at a rapid pace, culminating in the 2024 commercial launch of Agentforce - its AI agent platform designed to automate tasks, streamline operations and help lift margins.