Chile Artificial Intelligence (AI) Data Center Market

Chile Artificial Intelligence (AI) Data Center Market Analysis

The Chile Artificial Intelligence Data Center Market size is estimated at USD 245.27 million in 2025, and is expected to reach USD 578.72 million by 2030, at a CAGR of 17.88% during the forecast period (2025-2030).

Chile, located in South America, is recognized for its stable economy, robust infrastructure, and commitment to sustainability. The country has become a strategic destination for global investments, particularly in the technology and renewable energy sectors. With a strong focus on innovation and digital transformation, Chile is emerging as a key player in Latin America’s technological advancements, including artificial intelligence (AI) and data center development.

The Chilean government launched the ‘National Data Centre Plan’ in May 2024 to attract USUSD2.5 billion in investments and promote sustainable practices. The plan prioritizes energy-efficient technologies and renewable energy. Additionally, the updated National Artificial Intelligence Policy addresses technological challenges, establishes a framework for AI development, and encourages collaboration between the public and private sectors to enhance research and development.

Amazon Web Services (AWS) announced a USD4 billion investment in 2024 to establish its first data centers in Chile, marking its third cloud region in Latin America. The project, set to begin operations by late 2026, will support generative AI services and use air and evaporation cooling technologies to minimize water usage. Meanwhile, Google faced setbacks with its USD200 million data center in Santiago after a Chilean environmental court partially reversed its permit due to water usage concerns during a drought. Google plans to revise the project with air-cooled technology to address these issues.

Chile’s data center industry is expected to expand further, supported by government initiatives and growing demand for AI and cloud services. However, sustainability remains a key focus, with companies adopting eco-friendly cooling technologies in response to water scarcity. AWS’s use of air and evaporation cooling reflects this shift. Additionally, advancements in cloud infrastructure, 5G networks, and edge computing are reducing latency and enabling new applications, further strengthening Chile’s role as a digital gateway in Latin America. With its strategic investments and commitment to sustainability, Chile is emerging as a leader in the region’s AI and data center landscape.

Chile Artificial Intelligence (AI) Data Center Market Trends and Insights

Expansion of Hyperscale Cloud Infrastructure

Chile is establishing itself as a significant hub for hyperscale cloud providers in Latin America. In May 2025, Amazon Web Services (AWS) announced a USD 4 billion investment to develop its first data centers and cloud infrastructure in the country. This initiative represents AWS's third cloud region in Latin America, following its existing regions in Brazil and Mexico. The project is expected to become operational in the second half of 2026. Once completed, it will provide substantial computing power, including infrastructure designed to support generative AI services. These services are increasingly being adopted across industries such as healthcare, finance, and manufacturing, where advanced computing capabilities are essential for innovation and operational efficiency.

In addition, Microsoft is investing approximately USD 317 million to construct a data center in Chile. This facility is also projected to be fully operational by 2026. These developments indicate a growing focus on Chile as a location for cloud infrastructure expansion. The country’s geographic position, access to renewable energy sources, and improving digital infrastructure are factors contributing to its selection by global technology companies. These data centers are expected to enhance regional cloud service availability, reduce latency, and support the increasing demand for AI-driven applications and cloud computing solutions in Latin America.

Adoption of Sustainable and Water-Efficient Cooling Technologies

Chile’s prolonged drought, now extending over 15 years, has significantly raised environmental concerns, particularly regarding water consumption in data centers. This situation has led companies to implement sustainable cooling technologies to address these challenges. For instance, AWS has announced that its upcoming data centers will primarily utilize air and evaporation-based cooling systems. Water usage will be restricted to only 4% of the year, which is equivalent to the water consumption of eight homes over 15 years. This approach aims to reduce the environmental impact while maintaining operational requirements.

Similarly, Google faced environmental challenges with its proposed USD 200 million data center in Santiago. In September 2024, a Chilean environmental court partially revoked the project’s permit due to concerns over water usage amidst the ongoing drought. In response, Google has stated plans to revise its project by incorporating air-cooled technology, which reduces water dependency and addresses environmental concerns. This adjustment reflects the necessity to align with sustainable practices in the region.

These developments indicate a broader industry trend towards environmentally conscious practices within Chile’s data center sector. Companies are increasingly adopting water-efficient cooling technologies to address regulatory and environmental challenges, ensuring compliance and sustainability in their operations.

Competitive Landscape

Chile's AI data center market is advancing at a rapid pace, driven by increasing demand for advanced digital infrastructure to support artificial intelligence (AI), cloud computing, and other emerging technologies. Key players in this market include global giants such as Amazon Web Services Inc., Microsoft Corporation, Advanced Micro Devices Inc., NVIDIA Corporation, and Cisco Systems Inc. These companies are actively investing in expanding data center capacities, leveraging cutting-edge technologies to meet the growing needs of AI-driven applications and cloud services. The market's growth is further bolstered by the Chilean government's initiatives, which aim to enhance AI capabilities and foster innovation within the country. Together, these factors position Chile as a significant player in the global AI data center landscape, with robust growth prospects in the coming years.

AMD has strengthened its footprint in Chile by providing cutting-edge data center solutions to support the country's growing demand for high-performance computing. The company has partnered with key organizations to deliver AMD EPYC CPUs and AMD Instinct GPUs, enabling enhanced computational capabilities for various sectors, including scientific research, cloud computing, and artificial intelligence. These advancements are expected to significantly contribute to Chile's technological progress and position the country as a leader in the adoption of advanced computing technologies in Latin America.

Chile Artificial Intelligence (AI) Data Center Industry Leaders

Recent Industry Developments

• May 2025: Patria Investments has launched Omnia, a new data center platform focused on developing, building, and operating large-scale data centers across Latin America. Omnia will prioritize 100MW+ facilities designed for high-density workloads using liquid cooling and powered by renewable energy. The first facility's construction is scheduled to begin in the second half of 2025, with operations expected by the end of 2027.
• April 2025: Equinix has expanded its ST2 facility in Santiago, Chile, with a $50 million investment. Located in the Pudahuel area, the facility is the first in Chile to incorporate liquid cooling technology. Equinix now operates four data centers in the country, with a combined IT capacity of over 7.5MW and a total area of 7,536 sqm. A fifth facility, ST5, is under construction in the same district and will feature 16 data rooms across two stories upon completion.