AWS expands in Latin America with first Chile cloud region

Amazon Web Services (AWS) will invest $4 billion to build its first cloud region in Chile by late 2026, marking a significant expansion of its Latin American presence.

The new region will feature three availability zones and become AWS’s third region in the region after Brazil and Mexico, and its 37th worldwide.

The company confirmed that all necessary permits for construction and operation have been secured. AWS expects the Chilean region to provide substantial computing power for generative AI, data analytics and enterprise applications.

The decision reflects the growing demand for low-latency cloud services as Chile’s cloud market is projected to expand more than 30 percent in 2024 and reach $1.9 billion by 2025. IDC forecasts continued growth at about 20 percent annually through 2028.

Local organisations, including LATAM Airlines, AgroSuper and Andrés Bello University, already rely on AWS for critical workloads. Partners such as Deloitte, Accenture and NTT will help support customer onboarding and manage systems.

AWS’s expansion follows its entry into Chile in 2019 with a content delivery edge location, followed by the addition of Outposts, Direct Connect, and a Local Zone over the past few years.

Environmental considerations remain central to the project. AWS will limit water cooling to only 4 percent of the year — equivalent to the annual consumption of two average Chilean households — and primarily use air and evaporative cooling.

The company reached 100 percent renewable-energy usage in 2023 and targets net-zero carbon emissions by 2040 as part of its Climate Pledge.

Competition is heating up in Chile’s cloud market. Microsoft Azure plans to open its local region this year, while Google faced regulatory setbacks after a court partially revoked its permit for a $200 million data centre project.

AWS hopes its early investment will help it capture a larger share of the Latin American cloud services sector, reinforcing its global network of 36 regions and 114 availability zones.

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