Nadella said the investment is "focused on expanding access to digital technology for people and organisations across the country".
Microsoft will build a new data centre to deliver "client services to help every organisation to really get an advantage and drive digital transformation", added Nadella, who met with Mexican President Andres Manuel Lopez Obrador last year.
Vole will also invest in training labs and skills programmes, Nadella said.
This is probably a much better approach than building a wall to keep the Mexicans out.