Amazon Web Services (AWS), the cloud computing division of Amazon, has announced a $4 billion investment to establish its first data centers and cloud infrastructure in Chile.
This project marks AWS’s third cloud region in Latin America, following similar initiatives in Brazil and Mexico. The new cloud region in Chile is expected to become operational by the second half of 2026, according to Juan Pablo Estevez, the head of AWS South Latin America.
During an interview in Santiago, Juan Pablo Estevez confirmed that all the necessary permits have been secured for the project, which aims to provide significant computing power for services including generative AI, Reuters news report said.
The rise in data center construction globally has raised concerns about the environmental impact, particularly regarding energy and water consumption. These concerns have been particularly pronounced in Chile, a country that has been grappling with a severe drought for over 15 years.
In response to environmental concerns, Amazon has outlined measures to mitigate the impact of its new data centers in Chile. Estevez stated that the facilities would only rely on water cooling systems for about 4 percent of the year, a usage rate estimated to be equivalent to that of eight homes over a 15-year period. For the remaining time, the data centers will primarily use air cooling and evaporation technology to manage temperatures effectively.
AWS has emphasized its commitment to sustainable operations, with Estevez highlighting that since 2023, Amazon has been matching 100% of its energy consumption with renewable energy sources. The company currently operates 36 cloud regions and 114 availability zones globally, serving major clients such as Netflix, General Electric, and Sony, who use AWS services for storage, networking, and security. In Chile, AWS already serves a range of local enterprises, including major retailer Cencosud, e-commerce giant MercadoLibre, and mining companies, through its existing regional services.
Despite a recent dip in AWS’s first-quarter cloud revenue and income forecast, Estevez remains optimistic about growth in Chile and the broader Latin American region. He noted that the cloud market in Chile, valued at $1.5 billion in 2024, is projected to grow to $1.9 billion by 2025.
According to market forecasts, the sector is expected to expand by 20.3 percent annually until 2028. AWS’s significant investment in Chile is poised to strengthen its foothold in the region and meet the rising demand for cloud infrastructure amid the increasing adoption of digital services and advanced computing solutions.
InfotechLead.com News Desk
