Amazon has announced a significant investment exceeding $4 billion to establish a new Amazon Web Services (AWS) infrastructure region in Chile by the end of 2026. This marks a major expansion in Latin America, designed to meet the growing demand for cloud services in the region. The new South America (Chile) Region will consist of three Availability Zones (AZs), adding to AWS's existing global network of 36 regions and 114 AZs. Upon completion, this will bring the total number of AWS regions to 41 and AZs to 130, including new expansions planned in Chile, New Zealand, Saudi Arabia, Taiwan, and a European Sovereign Cloud. Core Characters and Event Overview The chief figures in this announcement are Prasad Kalyanaraman, Vice President of AWS Infrastructure Services, and Aisén Etcheverry Escudero, Minister of Science, Technology, Knowledge, and Innovation in Chile. Kalyanaraman emphasized that the new region will address the increasing cloud service demand in Latin America, offering a secure and efficient infrastructure for innovation. Etcheverry Escudero welcomed the investment, noting its importance in bolstering Chile’s standing as a technology hub and fostering local economic growth. Cause and Purpose The need for this new infrastructure stems from the rapid technological advancement and digital transformation occurring across Latin America. Chile, in particular, has seen a surge in demand for cloud services from various sectors, including financial institutions, retailers, educational institutions, government agencies, and non-profit organizations. The new AWS region will help these entities manage data locally, comply with data residency regulations, and provide low-latency services, thereby enhancing user experience and operational efficiency. Specific Measures and Benefits AWS has been steadily building its presence in Chile since 2019, starting with the deployment of an Amazon CloudFront edge location. In 2021, the company launched an AWS Ground Station antenna site in Punta Arenas and introduced AWS Outposts, allowing customers to run AWS services on-premises. These efforts were followed by the setup of an AWS Direct Connect site and a Local Zone in Santiago in 2023, further reducing latency and improving service performance. The new South America (Chile) Region will offer a wide array of services, including advanced technologies like AI and machine learning. Notably, many prominent Chilean organizations have already begun using AWS, such as AgroSuper, Universidad Andrés Bello, Banco de Chile, Itaú Bank, BancoEstado, Cencosud, Coca-Cola Andina, and Transbank. These companies span industries like finance, retail, education, and logistics, and they are looking to leverage AWS's capabilities to drive their digital initiatives. Sustainability and Environmental Commitment Amazon is committed to minimizing the environmental impact of its new data center. The design of the facility will prioritize energy efficiency and sustainability, aligning with The Climate Pledge commitment to achieve net-zero carbon emissions by 2040. According to AWS-commissioned research by Accenture, AWS data centers are up to 4.1 times more energy-efficient than traditional facilities, and optimized workloads can reduce carbon footprint by up to 99%. The cooling system will rely primarily on air cooling, with only about 4% of the time requiring water cooling, equivalent to the annual water usage of approximately two Chilean households. Economic Impact and Job Creation The establishment of the new data center is expected to generate significant economic benefits for Chile. It will create numerous job opportunities and stimulate the local economy. AWS plans to expand its training programs, including AWS Academy, AWS Educate, and AWS Skill Builder, to support the development of local tech talent. Since 2017, AWS has trained over 200,000 people in Latin America, with more than 10,000 trainees in Chile alone. These initiatives aim to enhance the country's digital skills and foster a vibrant tech ecosystem. Future Prospects and Industry Reactions The new AWS region is poised to position Chile as a key technology node in Latin America. Peter DeSantis, Director of Global Infrastructure at AWS, highlighted that this expansion will not only meet the growing cloud service needs but also empower regional businesses with the latest technological advancements. Industry experts agree that Amazon’s substantial investment in Chile is a significant milestone for the region’s digital economy. They believe it will attract more international companies, bolster local startups, and drive innovation in critical areas like AI and machine learning. The impact of AWS's investment extends beyond just Chile. It reflects a broader trend of Latin America’s emerging role in global technology innovation and demonstrates confidence in the region's market potential. For Amazon, this move solidifies its leadership in the cloud computing sector and provides strong support for its clients in Latin America. Company Profile Amazon Web Services (AWS) is a subsidiary of Amazon, established in 2006 as one of the world's most comprehensive and broadly adopted cloud platforms. It offers over 240 fully managed services, including computing, storage, databases, networking, analytics, IoT, and AI/ML, serving millions of customers globally. AWS is known for its customer-centric approach, innovative solutions, and commitment to operational excellence and sustainability. The company's continuous investments in global infrastructure reflect its strategy to be a long-term leader in cloud technology and a trusted partner for businesses of all sizes. In summary, Amazon's investment in Chile’s new AWS region is a strategic move that enhances the company's global cloud infrastructure, supports local innovation, and promotes sustainable practices. This initiative is set to transform the digital landscape in Chile and contribute to the broader economic and technological growth of Latin America.