Amazon Web Services (AWS), the cloud computing arm of Amazon, will invest USD 4 billion to build its first data centers and cloud infrastructure in Chile. The project, which has secured all necessary regulatory permits, is expected to become operational by the second half of 2026, Reuters reported, citing AWS's head of South Latin America.
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Third Cloud Region in Latin America
The development in Chile marks AWS's third cloud region in Latin America, following existing operations in Brazil and Mexico. According to Juan Pablo Estevez, AWS's head for South Latin America, the new region will provide "substantial" computing capacity to support services such as generative artificial intelligence (AI).
Environmental Concerns Addressed
AWS's expansion comes amid growing scrutiny over the environmental impact of data centers, particularly in Chile, which has faced a severe drought for over 15 years. In response to these concerns, Estevez emphasised that the new facilities will use water-based cooling only 4 percent of the time—equivalent to the water usage of eight homes over a 15-year span. For most of the year, servers will be cooled using air and evaporation-based technologies.
Estevez also reportedly noted that Amazon has been matching 100 percent of its energy consumption with renewable sources since 2023.
AWS's announcement follows challenges faced by other tech firms in Chile. Google was forced to revise plans for a USD 200 million data center after a local environmental court partially reversed its permit last year. Meanwhile, Microsoft is set to launch its Azure cloud-computing center in Chile later this year, according to its website.
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Chile’s Cloud Market
Despite a recent dip in AWS's global revenue and income forecast, the company remains optimistic about growth in Chile and the broader region. "The forecast is that Chile's market will grow 20.3 percent year over year from now until 2028," said Estevez, as cited in the report. The local cloud market, valued at USD 1.5 billion in 2024, is projected to reach USD 1.9 billion in 2025.
AWS currently operates 36 cloud regions and 114 availability zones worldwide, serving major clients including Netflix, General Electric, and Sony. In Latin America, Chilean retail giant Cencosud, e-commerce leader MercadoLibre, and major mining firms are among the existing users of AWS's regional services.
