Amazon Commits US$4bn to new AWS Infrastructure in Chile

Amazon has unveiled plans for Amazon Web Services (AWS) to establish a new infrastructure Region in Chile by late 2026. 

The tech giant intends to invest more than US$4bn to construct and maintain data centres in the country, responding to increasing demand for cloud services across Latin America (LATAM).

The AWS South America (Chile) Region will comprise three Availability Zones at launch, contributing to the company's global infrastructure footprint that currently includes 114 Availability Zones across 36 AWS Regions. 

Such an expansion also represents an expansion of Amazon's investment strategy in the LATAM region.

“The AWS South America (Chile) Region will help serve the fast-growing demand for cloud services across Latin America and in Chile with secure, reliable, and efficient cloud infrastructure,” says Prasad Kalyanaraman, Vice President of Infrastructure Services at AWS. 

“With the new AWS Region, organisations will have the ability to build with advanced AWS technologies, like AI and machine learning, to help accelerate growth, productivity and innovation.”

Chilean government welcomes AWS investment

The Chilean government has positioned the announcement as validation of its efforts to bolster technology investment.

Currently, the country has 62 listed data centres – according to Data Center Map – with initiatives such as its National Data Center Plan designed to attract infrastructure development.

Aisén Etcheverry Escudero, Chile's Minister of Science, Technology, Knowledge and Innovation, views the AWS expansion as confirmation of Chile's technology strategy. 

“AWS's infrastructure expansion in Chile is a clear example of the country's commitment to advanced technology and innovation and to the work we've done to create an environment where technology companies can thrive, with the National Data Center Plan leading the way,” he explains. 

“This investment demonstrates clear confidence in our country and a commitment to technological development and innovation across the region.”

The Chilean AWS Region will follow the company’s sovereign-by-design approach, which it states has been part of the AWS Cloud architecture since inception. The facilities will provide Chilean customers with the complete range of AWS services, including analytics, compute, database, IoT, generative AI, machine learning and storage technologies.

Sustainability by design

The Region also focuses on water conservation and energy efficiency measures. Whilst the facilities will predominantly employ air cooling systems, AWS estimates that water will only be required for cooling operations during 4% of the year approximately.

It also suggests that its average water consumption will be equivalent to less than the amount used by two Chilean households annually at launch. The company says this aligns with Amazon's broader environmental commitments, including its goal to achieve net-zero carbon across operations by 2040 as part of The Climate Pledge, which Amazon co-founded in 2019.

Furthermore, the Chilean Region expands upon previous AWS investments in the country, which include an Amazon CloudFront edge location established in 2019, an AWS Ground Station antenna location in Punta Arenas in 2021 and the launch of AWS Outposts that same year. 

In 2023, the company added an AWS Direct Connect location and an AWS Local Zones installation in Santiago.

This builds upon the wider environmental commitments from the LATAM data centre industry. By strategically focusing on high-growth markets, whilst prioritising sustainable innovation, industry leaders and their partners operating across the region can expect to capitalise on this market and further contribute to digital transformation efforts in the area.

Continuing on its upward trajectory, the growth of the LATAM data centre market has been overwhelming and can be attributed to a range of factors, including global digital transformation, increasing cloud adoption and a regional surge of technologies like AI that require large volumes of data to power.

Providing essential services

AWS has developed a significant customer presence in Chile, with organisations across multiple sectors adopting its cloud technologies. 

Its banking clients include Banco de Chile, Banco Itaú, BancoEstado and BCI Mach, with the retail sector represented by companies such as Cencosud, Coca-Cola Andina and Salcobrand, while the transportation industry includes LATAM Airlines.

With this level of innovation, AWS has kept an active commitment to developing skills in the region. It has trained more than two million people across LATAM on cloud technologies since 2017, including 100,000 individuals in Chile, via its AWS Academy, AWS Educate and AWS Skill Builder programmes.

The company plans continued investment in local talent development to support the new Region in Chile.

Prasad adds: “By investing in local talent, educational opportunities, and digital skills training, we're proud to contribute to Chile's economic growth and digital transformation for years to come.”

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