Amazon to Invest More Than $4 Billion to Launch Infrastructure Region in Chile | AMZN Stock News

Author's Avatar
May 07, 2025
Article's Main Image
  • Amazon announces a $4 billion investment to establish an AWS infrastructure region in Chile by the end of 2026.
  • The AWS South America (Chile) Region will include three Availability Zones to support growing demand for cloud services.
  • Amazon aims to enhance local talent and digital skills in Chile, fostering economic growth and digital transformation.

Amazon (AMZN, Financial) has unveiled plans to invest over $4 billion in constructing a new Amazon Web Services (AWS) infrastructure region in Chile by 2026. This strategic move is expected to significantly bolster cloud service capabilities for a broad spectrum of sectors, including financial services, education, and government, as well as retail and nonprofit organizations.

The upcoming AWS South America (Chile) Region, featuring three Availability Zones, is designed to meet the burgeoning demand for cloud services in Latin America, particularly in Chile. This initiative will enable customers to run workloads and store content securely, offering lower latency and enhanced service efficiency.

Prasad Kalyanaraman, vice president of Infrastructure Services at AWS, emphasized the region's capacity to drive growth through advanced technologies including artificial intelligence and machine learning. The infrastructure expansion also aims to support local workforce development through educational initiatives such as AWS Academy and AWS Educate, focusing on upskilling Chilean talent.

Chile's Minister of Science, Technology, Knowledge and Innovation, Aisén Etcheverry Escudero, remarked on the investment as a testament to the country's commitment to fostering a thriving environment for technology innovation.

This new region marks a continuation of Amazon's commitment to sustainable operations, aligned with its goal of achieving net-zero carbon emissions by 2040. AWS's strategic growth in Chile includes existing services like Amazon CloudFront, AWS Ground Station, and AWS Outposts, reflecting its ongoing dedication to infrastructure development and energy efficiency.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.