Amazon (NASDAQ: AMZN) has unveiled plans for a landmark $4 billion investment to launch a new Amazon Web Services (AWS) infrastructure region in Chile, marking one of the company’s largest commitments in Latin America to date.
The announcement, made Wednesday, signals Amazon’s intent to accelerate cloud adoption across the region and further solidify its leadership in the global cloud computing market.
The multi-billion dollar investment will fund the construction, connection, and operation of a network of data centers in Chile, with the new AWS region set to open by the end of 2026.
At launch, the region will feature three availability zones-clusters of independent data centers designed to ensure high availability and resilience for customers. This expansion will allow organizations in Chile and throughout Latin America to access AWS’s full suite of cloud services with lower latency, improved reliability, and enhanced data sovereignty.
Amazon’s move comes as demand for cloud services in Latin America continues to surge, driven by digital transformation across industries such as finance, healthcare, education, and e-commerce.
The new AWS region in Chile will empower local businesses, startups, and public sector organizations to leverage advanced technologies, including artificial intelligence and machine learning, to drive innovation and productivity.
In addition to infrastructure, Amazon is investing in local talent and digital skills development. The company plans to hire and train Chilean professionals to operate and support the new AWS region, contributing to the country’s economic growth and technological advancement.
AWS already counts major Chilean enterprises such as LATAM Airlines, AgroSuper, and Andrés Bello National University among its customers.
Environmental responsibility is also a core focus of the project. Amazon has committed to using primarily air-cooled systems for its Chilean data centers, with water-based cooling employed for only about 4% of the year.
The company estimates that annual water usage will be less than that of two average Chilean households, aligning with Amazon’s broader climate pledge to achieve net-zero carbon emissions across its operations by 2040.
Chile’s Minister of Science, Technology, Knowledge and Innovation, Aisén Etcheverry Escudero, welcomed the investment, highlighting it as a testament to Chile’s commitment to fostering a thriving digital economy and creating an environment where technology companies can excel.
Amazon’s AWS expansion in Chile will join existing cloud regions in Brazil and Mexico, making it the company’s third in Latin America. The move also intensifies competition with other global cloud providers, including Google Cloud and Microsoft Azure, both of which have established a presence in the Chilean market.
As cloud computing becomes ever more critical to economic growth and digital transformation, Amazon’s $4 billion bet on Chile underscores its confidence in the region’s potential and its commitment to supporting innovation for years to come.