Amazon Web Services (AWS) recently announced plans to launch a new infrastructure region in Chile by the end of 2026, marking a significant investment of over $4 billion. This initiative aims to enhance cloud services for Chilean businesses and organizations, providing them with greater choice and lower latency for running applications and storing data securely within the country.
With a growing demand for cloud services across Latin America, the new AWS South America (Chile) Region is expected to benefit a wide range of industries, including retail, financial services, education, and government. Notable current AWS customers in Chile include the likes of LATAM Airlines, Banco de Chile, and Coca-Cola Andina, among many others.
Prasad Kalyanaraman, Vice President of Infrastructure Services at AWS, emphasized the importance of this development. "The AWS South America (Chile) Region will help serve the fast-growing demand for cloud services across Latin America and in Chile with secure, reliable, and efficient cloud infrastructure," he stated. He further highlighted that organizations will gain access to advanced technologies, such as artificial intelligence and machine learning, which could accelerate growth, productivity, and innovation.
For small business owners, this expansion has several key benefits. The local infrastructure not only means reduced latency—crucial for applications requiring rapid data access—but also ensures compliance with data residency requirements for organizations that need to store sensitive information locally. The AWS region will launch with three Availability Zones, providing a robust setup for business continuity and high availability applications.
One of the standout aspects of this initiative is its potential to drive economic growth and digital transformation in the region. Chile’s Minister of Science, Technology, Knowledge, and Innovation, Aisén Etcheverry Escudero, underscored this point, stating, "This investment demonstrates clear confidence in our country and a commitment to technological development and innovation across the region."
While the benefits are significant, small business owners should also remain aware of potential challenges. Transitioning workloads to the cloud can require substantial upfront investments in training and development. AWS has committed to local talent development through training programs like AWS Academy, AWS Educate, and AWS Skill Builder. Since 2017, Amazon has trained over two million individuals in Latin America on cloud skills, with more than 100,000 in Chile alone.
Another consideration is the adaptability of businesses during this transition. While AWS provides powerful tools and technologies, businesses must evaluate their operational processes to fully leverage these advancements, especially those unfamiliar with cloud environments.
Energy efficiency and sustainability are also at the forefront of AWS’s investment. The upcoming data centers in Chile will be largely air-cooled, and AWS estimates that water utilization for cooling will be minimal, representing about 4% of the year’s total need. AWS is committed to reaching net-zero carbon across its operations by 2040, aligning with broader sustainability goals.
Small business owners looking to innovate may find this new AWS region to be a game changer. With secure, reliable, and energy-efficient cloud infrastructure, organizations can access advanced technologies to drive growth and improve bottom lines. However, they should prepare for an adaptation phase to ensure they can take full advantage of what these new resources offer.
In a landscape increasingly defined by digital transformation, AWS’s infrastructure in Chile positions small businesses to compete more effectively both locally and globally. The local availability of cloud services may foster an era of innovation, allowing businesses to evolve their operations with agility and foresight.
For further details, you can read the full announcement from Amazon here.
Image Via Envato: lblinova
