Amazon to Launch AWS Region in Chile with $4 Billion Investment
SEATTLE – Amazon.com Inc. (NASDAQ: AMZN), a dominant broadline retail and cloud computing leader, plans to establish a new Amazon Web Services (AWS) infrastructure region in Chile by late 2026. This significant expansion underlines Amazon’s strategic intent to enhance cloud capabilities across Latin America, backed by a major $4 billion investment in constructing and maintaining data centers in the region.
- According to InvestingPro, Amazon’s current stock trades just below its Fair Value, indicating potential growth opportunities for investors.
- The initiative reflects the company’s ongoing commitment to regional digital transformation and global infrastructure expansion.
Expansion Strategy and Financial Foundation
The AWS South America (Chile) Region will initially launch with three Availability Zones, aligning with Amazon’s wider infrastructure plan to develop five new AWS regions and 16 additional zones worldwide.
- Amazon’s strong financial health, rated GREAT by InvestingPro, and its moderate debt levels support this large-scale investment.
- This underscores Amazon’s ability to sustain long-term growth while expanding its cloud footprint.
Enabling Innovation Through Infrastructure
AWS Vice President of Infrastructure Services, Prasad Kalyanaraman, stated that the new region will address increasing demand for cloud services by offering secure, low-latency infrastructure.
- Local organizations will benefit from access to advanced AWS technologies, driving innovation and digital resilience.
- This expansion will empower both public and private sectors, from startups to government agencies.
Government Endorsement and Strategic History in Chile
Chile’s Minister of Science and Technology, Aisén Etcheverry Escudero, welcomed the move as validation of Chile’s growing role in technological advancement.
- Amazon has previously launched several services in Chile:
- An Amazon CloudFront edge location in 2019
- An AWS Ground Station antenna in 2021
- AWS Outposts for local infrastructure extension
- AWS Direct Connect and Local Zones in 2023 to improve latency and connectivity
Data Sovereignty and Localized Services
The new AWS Region will emphasize data sovereignty, a priority in AWS architecture, by allowing data to be stored and processed within Chile.
- Customers will benefit from improved performance and compliance support due to local data residency.
- The infrastructure will support diverse clients, including educational institutions, healthcare providers, and financial entities.
Sustainability at the Core
Amazon plans to operate the Chilean region with air-cooling technology, significantly reducing water usage—a key component of its environmental strategy.
- This aligns with Amazon’s pledge to reach net-zero carbon emissions by 2040, a goal under The Climate Pledge.
- Amazon’s strong operational metrics, including $126.14 billion in EBITDA and a 15% return on invested capital, support both sustainable and profitable growth.
Workforce Development and Regional Education
To accelerate cloud adoption, Amazon has invested heavily in cloud education, training over two million people in Latin America since 2017.
- In Chile alone, more than 100,000 individuals have received cloud skills training, supporting a robust digital talent pipeline.
Broader Business Context and Analyst Outlook
Amazon’s Q1 2025 results outperformed expectations, revealing strong revenue and earnings despite a slowdown in AWS growth, attributed to enterprise sales delays and AI service limitations.
- In parallel developments:
- Zoox, Amazon’s autonomous vehicle arm, recalled 270 vehicles after a Las Vegas incident, with a software update in progress.
- Analysts remain confident, with Tigress Financial Partners raising the 12-month price target to $305, while DA Davidson and UBS maintained Buy ratings at $230 and $249, respectively.
This latest AWS expansion not only strengthens Amazon’s regional presence but also reinforces its dual focus on technological innovation and sustainable development.