Amazon to Invest $4 Billion in Chile for New AWS Region

Amazon Expands Cloud Infrastructure in Chile with $4 Billion Investment

Amazon is committing significant capital to bolster both current and prospective Amazon Web Services (AWS) users within Chile.

The technology leader revealed on Wednesday a planned investment exceeding $4 billion. This funding will facilitate the construction of an AWS infrastructure region comprised of data centers in Chile, slated for completion by the close of 2026.

Establishing a New AWS Region

The investment will be allocated to the creation of three distinct availability zones – essentially, independent groupings of data centers – within the new AWS region. Amazon also intends to cultivate and employ local expertise for the operation and maintenance of this Chilean region.

According to Prasad Kalyanaraman, VP of infrastructure services at AWS, “The AWS South America (Chile) Region is designed to address the increasing demand for cloud services throughout Latin America, and specifically within Chile, by providing a secure, dependable, and highly efficient cloud infrastructure.”

He further stated that the new region will empower organizations to utilize cutting-edge AWS technologies, including artificial intelligence and machine learning, to drive growth, enhance productivity, and foster innovation.

Existing AWS Presence and Customer Base

AWS currently serves a substantial customer base in Chile. Notable clients include LATAM Airlines, Agrosuper, and the Andrés Bello National University.

This expansion represents a continuation of Amazon’s investment in AWS infrastructure and services within Chile.

Prior Investments in Chilean Infrastructure

In 2021, AWS Outposts were launched in Chile, extending access to AWS services on-premises. Subsequently, in 2023, customers were granted the ability to establish private connectivity between AWS and their existing data centers or offices.

Also during 2023, AWS Local Zones were introduced to provide customers with access to extremely low-latency AWS offerings.

Competitive Landscape

Amazon is not alone in establishing a cloud presence in Chile. Google Cloud initiated its first cloud region in Chile in 2021, following initial announcements made five years prior.

Similarly, Microsoft’s Azure unveiled its inaugural data center region in Chile in 2020.

Further details regarding this investment have been requested from AWS.