AWS Boosts Cloud Footprint in LATAM with Chile Expansion
Amazon has announced ambitious plans for Amazon Web Services (AWS) with a new infrastructure region being established in Chile by the end of 2026.
The tech behemoth is planning a financial injection of more than US$4bn to develop and sustain data centres throughout the country, catering to an escalating demand for cloud services across the Latin America (LATAM) region.
This AWS South America (Chile) Region encompasses the launch of three Availability Zones, which will extend AWS’ global infrastructure already constituted by 114 Availability Zones across 36 AWS Regions.
Additionally, this venture highlights Amazon’s ongoing strategy to amplify its investment regime within the LATAM sector.
“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 supports technological progress
This announcement bolsters the Chilean government's efforts to underpin technology investment.
The nation, currently home to 62 data centres according to Data Center Map, actively seeks infrastructure development via projects like its National Data Center Plan.
- 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 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 AWS Chilean Region will align with the company’s sovereign-by-design framework, rooted in the AWS Cloud architecture from its inception.
Chilean clients will gain access to comprehensive AWS services, such as analytics, compute, database, IoT, Gen AI, ML and storage technologies.
Sustainability by design
The Chilean initiative also addresses water conservation and energy efficiency.
The facilities will primarily use air cooling systems, with AWS anticipating water utilisation for cooling being required roughly four percent of the year.
The projected water consumption is estimated to fall below the annual usage of two Chilean households upon completion, aligning with Amazon's environmental objectives, including a commitment to net-zero carbon levels by 2040 as delineated in The Climate Pledge, which Amazon co-founded in 2019.
This Chilean presence enhances AWS’ existing ventures in the area, such as the 2019 launch of an Amazon CloudFront edge site, an AWS Ground Station in Punta Arenas in 2021 and the AWS Outposts initiative the same year.Moreover, in 2023, AWS established a Direct Connect site and an AWS Local Zones installation in Santiago, which complements the regional environmental commitments within the LATAM data centre landscape.
- 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
As industry leaders and collaborators concentrate on emerging markets with a sustainable innovation focus, they can leverage this increasingly profitable market and further the digital transformation efforts in the region.
The LATAM data centre market's momentum continues upward, driven by factors such as a rampant digital transformation, burgeoning cloud adoption and a regional proliferation of data-intensive technologies like AI.
Ensuring essential cloud services
In Chile, AWS boasts a growing client base, with companies across diverse sectors incorporating its cloud solutions.
Its banking clientele includes Banco de Chile, Banco Itaú, BancoEstado and BCI Mach, alongside retail giants like Cencosud, Coca-Cola Andina and Salcobrand, and transport entities such as LATAM Airlines.
Aligned with this progression, AWS remains devoted to nurturing regional expertise.
The company has equipped more than two million individuals across LATAM with cloud technology knowledge since 2017, including 100,000 in Chile, through initiatives like AWS Academy, AWS Educate and AWS Skill Builder programmes.
AWS is planning sustained investment to further nurture local talent in support of the impending Chilean Region.
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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