Will AWS' South American Expansion be Sustainable?
Amazon has unveiled plans for Amazon Web Services (AWS) to establish a new infrastructure Region in Chile by late 2026.
This development is set to reinforce AWS's commitment to sustainable practices while addressing the growing demand for cloud services across Latin America.
With an investment exceeding US$4bn, AWS intends to build and maintain data centres in Chile.
This investment aligns with AWS’s broader strategy of expanding its infrastructure footprint, which already spans 114 Availability Zones across 36 AWS Regions.
“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 welcomed this initiative, seeing it as a testament to its efforts in fostering technological investment.
Currently, the country has 62 listed data centres – according to Data Centre Map – with initiatives such as its National Data Centre Plan designed to attract infrastructure development.
- Google
- Kyndryl
- Equinix
- Digital Realty
- Scala Data Centers
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 Centre 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.”
Additionally, AWS’s new region will adhere to its sovereign-by-design approach, ensuring that local customers can access a comprehensive suite of AWS services while maintaining stringent environmental standards.
This includes leveraging AWS's expertise in analytics, AI, machine learning and IoT to foster regional innovation while supporting sustainable practices.
Sustainability by design
The design of the new AWS Region in Chile incorporates significant sustainability measures, with an emphasis on water conservation and energy efficiency.
The facilities primarily use air cooling systems, with water only required for cooling during approximately 4% of the year.
This efficient approach is projected to result in water consumption equivalent to less than what two Chilean households use annually.
- The LATAM data centre market is currently estimated to be around US$5.14bn in 2024 and is expected to grow to US$7.81bn by 2029
- In particular, the South American market is expected to reach 1.81 thousand megawatts (MW) by 2029
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.
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’s expansion in Chile also underlines its commitment to developing local talent and fostering digital skills.
Since 2017, AWS has trained more than two million individuals in cloud technologies across LATAM, including 100,000 in Chile alone.
Through programs such as AWS Academy, AWS Educate and AWS Skill Builder, AWS is preparing the workforce for future technological advancements while supporting the sustainable growth of the cloud industry.
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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