Amazon Web Services (AWS), the cloud computing division of Amazon (AMZN, Financial), plans to invest $4 billion to establish its first data center and other cloud infrastructure in Chile. This will be AWS's third cloud region in Latin America, following Brazil and Mexico, with operations expected to commence in 2026. The project, which has received all necessary permits, aims to provide substantial computing power for services like generative AI.
The rapid increase in global data centers has raised concerns about energy and water resource usage. In Chile, these concerns are heightened due to a prolonged drought lasting over 15 years. Last year, environmental issues led a local court to revoke part of Google's permit for a $200 million data center in Chile, forcing a redesign. Microsoft's Azure data center in Chile is expected to launch this year.
Juan Pablo Estevez, AWS's regional head for Chile, stated that Amazon's cloud region will only use water for cooling 4% of the year, equivalent to the annual usage of eight households over 15 years, relying on air and evaporation for the rest. Since 2023, Amazon has used 100% renewable energy. AWS currently operates 36 cloud regions and 114 availability zones worldwide, serving companies like Netflix, General Electric, and Sony.
