Amazon to Invest $4 Billion in Chile for New AWS Cloud Region

Amazon to Invest $4 Billion in Chile for AWS Infrastructure Region

Amazon Web Services (AWS) is set to make a significant investment of over $4 billion in Chile, aiming to establish a new AWS infrastructure region by the end of 2026. This strategic move underscores Amazon's commitment to expanding its cloud services across Latin America and bolstering its presence in Chile.

Key Investment Details:

• Investment Amount: More than $4 billion.
• Timeline: By the end of 2026.
• Objective: To build an AWS infrastructure region comprising three availability zones (groups of isolated data centers).
• Goal: To serve the growing demand for cloud services in Chile and across Latin America, providing secure, reliable, and efficient cloud infrastructure.

Strategic Importance and Benefits:

Prasad Kalyanaraman, VP of infrastructure services at AWS, highlighted the significance of this expansion. The new AWS Region will empower organizations in Chile and the broader Latin American market to leverage advanced AWS technologies, including artificial intelligence (AI) and machine learning (ML). This will facilitate accelerated growth, enhanced productivity, and foster innovation.

AWS aims to hire and develop local talent to manage and support the new infrastructure, contributing to the Chilean economy and tech ecosystem.

Existing AWS Presence and Customer Base in Chile:

AWS already boasts a strong customer base in Chile, including prominent organizations such as LATAM Airlines, Agrosuper, and Andrés Bello National University. This new investment builds upon Amazon's prior initiatives in the country:

• 2021: Launched AWS Outposts in Chile, extending on-premises access to AWS services.
• 2023: Enabled private connectivity between AWS and customers' data centers or offices.
• 2023: Rolled out AWS Local Zones to provide low-latency AWS offerings.

Competitive Landscape:

Amazon's expansion into Chile occurs amidst a competitive cloud market in the region. Major cloud providers have also established or announced significant investments:

• Google Cloud: Launched its first cloud region in Chile in 2021.
• Microsoft Azure: Announced its first data center region in Chile in 2020.

This investment positions AWS to compete effectively and capture a larger share of the burgeoning cloud market in Latin America.

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Topics Covered:

• Amazon
• AWS
• Chile
• Cloud Infrastructure
• Data Centers
• Enterprise
• United States

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