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Amazon to Invest $4 Billion in Cloud Infrastructure in Chile, Eyes 2026 Launch

Amazon Web Services (AWS) will invest $4 billion to build its first data centers in Chile, establishing a dedicated cloud region that is set to go live by the second half of 2026, the company confirmed in an interview with Reuters on Tuesday.

This marks AWS’s third cloud region in Latin America, after Brazil and Mexico, and reflects the tech giant’s continued push to expand its generative AI and cloud services footprint across high-growth emerging markets.

All the necessary permits have been approved,” said Juan Pablo Estevez, AWS’s head of South Latin America, who emphasized the project’s potential to provide substantial computing power” to local and regional businesses.

Environmental Considerations

AWS’s expansion comes amid concerns over the environmental impact of data centers in drought-stricken Chile, where Google was forced to revise a $200 million data center plan due to environmental backlash last year.

  • Estevez noted that AWS’s Chile facilities will use water-based cooling for only 4% of the year, equivalent to the consumption of just eight households over 15 years.

  • The remaining cooling needs will be met through air and evaporation-based technologies.

  • AWS has also matched 100% of its energy use with renewable sources since 2023.

Market Outlook and Growth

Despite AWS’s recent cloud revenue falling short of Wall Street forecasts, Estevez remains bullish on the regional outlook:

  • Chile’s cloud market is projected to grow 20.3% annually through 2028

  • Valued at $1.5 billion in 2023, it is expected to reach $1.9 billion by 2025

AWS already serves regional clients like Cencosud, MercadoLibre, and various mining companies, and will now compete directly with Microsoft Azure, whose Chilean center is set to go live this year.

Globally, Amazon operates 36 cloud regions and 114 availability zones, powering key enterprise services for companies like Netflix, Sony, and General Electric.