Chile has positioned itself as one of the most attractive geographies in Latin America for Data Center deployment. In fact, the country is the main candidate to become the Digital Hub for the Southern Cone, putting itself as a top player in the region, beside economies like Brazil or Mexico.
In the last years, Chile has caught the attention of the main Cloud Service Providers worldwide, announcing consistent investments which have multiplied lately. These announcements have been a strong impulse for the Data Center industry in the country.
As InvestChile informed recently, new Data Center deployments in Chile mean almost a 3,000 million USD investment nationally. This comes hand in hand with an increase in cloud service investment, which has been growing in double-digit figures in the last years.
Forecasts until 2023 keep this tendency stable, so we will be able to see a considerable growth in investments in Chile and Latin America as a whole, as hyperscalers keep deploying new cloud nodes.
The favorable situation that Chile has is no mere coincidence. The country gathers the necessary conditions to be attractive for new investments. Amongst them, we can highlight a strong Telecommunications sector (because of which, Chile will be the first Latin American country to develop a 5G network), and a solid Data Center infrastructure ecosystem with a huge expansion capability.
Another relevant factor is Power availability to deliver new developments rapidly. We must highlight the great proportion in the generation of renewable energy in Chile, having over 1,800 GW of solar energy installed, which helps to develop a more efficient Data Center ecosystem.
In the past years, Chile has consolidated its comparative advantages and fostered a series of measures to increase its attractiveness for investors, highlighting the following:
Consequently, this general outlook has allowed Chile to be one of the biggest receptors of Colocation demand by hyperscalers. In our experience, Nabiax has executed growth projects which have doubled our capacity in Paine Data Center. In 2022, we will implement new investment projects, with the goal of multiplying our capacity by three, which will be focused on answering to this increasing demand.
Gonzalo Atán, Country Manager Chile