Amazon's cloud computing unit (AWS) has announced plans to invest $4bn in Chile to build its first data centres and cloud infrastructure in the country. Juan Pablo Estevez, AWS head for South Latin America, confirmed in a Santiago interview with Reuters that all necessary permits have been secured for the project, which will deliver "substantial" computing power for services including generative AI.

The announcement comes amid growing environmental concerns over data centre operations in the South American nation, which has experienced drought conditions for more than 15 years. These concerns recently forced Google to scrap its plans for a $200mn data centre in the country after a local environmental court partially reversed its permit last September.

Google will now redesign the project from scratch, focusing on more sustainable technologies. The US tech giant stated it would utilise air-cooled technology, moving away from water-intensive cooling systems.

Addressing these environmental considerations, Estevez stated that Amazon's cloud region would use water cooling for its servers only 4% of the year, equivalent to about eight homes over a 15-year period, relying on air and evaporation technology for the remainder. He also confirmed that Amazon has matched 100% of its energy consumption with renewable power since 2023.

The investment represents a significant expansion of AWS's global footprint, which already includes 36 regions and 114 availability zones worldwide, serving clients such as Netflix, General Electric, and Sony. In Chile, existing users of Amazon's regional services include Cencosud, MercadoLibre, and mining companies. This expansion comes as Chile positions itself as a regional technology hub, with Microsoft's Azure centre also expected to launch in the country this year.