Data Centers in Chile

Chile – South America's Premier Digital Hub

Chile is the market for enterprises requiring a stable, well-connected, and economically predictable beachhead for delivering digital services across the Southern Cone. Its top-tier connectivity and growing cloud ecosystem reduce latency for users in the Andean region, directly supporting revenue-critical applications. For companies prioritizing operational stability and scalable infrastructure in Latin America, Chile is a leading choice.

Chile: At A Glance

Network & Connectivity Ecosystem

Chile's connectivity is among the best in South America, anchored by multiple subsea cables and a competitive local market. This mature ecosystem ensures reliable, low-latency performance for workloads serving both domestic and regional users.

Carrier Density & Carrier Neutrality With over 24 carriers active in the market as of September 2025, businesses have significant choice. A strong presence of carrier-neutral colocation facilities in Santiago promotes competition and flexible interconnection options.

Direct Cloud On-Ramps Chile offers over 5 direct cloud on-ramps, enabling private, high-performance connections to 5 major cloud regions as of September 2025. Available providers include:

• AWS
• Google Cloud (GCP)
• Microsoft Azure
• Oracle Cloud

Internet Exchange Points (IXPs) The primary internet exchange, PIT Chile, is central to the country's low-latency environment, keeping domestic traffic within national borders and improving performance for end-users. This reduces reliance on international transit for local application delivery.

Bare Metal Bare metal server options are readily available from providers specializing in Latin American deployments. Companies like Latitude.sh offer dedicated server solutions for workloads that demand direct hardware access and consistent performance.

Power Analysis

Chile's power infrastructure is a significant asset, characterized by a progressive energy policy and a reliable grid in its core economic centers.

Average Cost Of Power Industrial power costs are estimated to range from CLP 90.00 – CLP 120.00/kWh as of September 2025. The grid's generation mix is approximately 70% renewable, making it an excellent choice for companies with sustainability mandates. This predictable cost structure and green energy profile offer long-term financial and environmental benefits.

Power Grid Reliability The power grid serving the Santiago metropolitan area, where most data centers are located, is well-engineered and stable. Colocation facilities are supported by redundant substations and utility feeds, providing the resilience required for mission-critical IT operations.

Market Access, Business & Tax Climate

Chile provides a stable and transparent business environment, serving as an effective hub for regional operations.

Proximity To Key Business Districts Data centers are concentrated in and around Santiago, providing low-latency connectivity to the nation's financial, retail, and government sectors. This proximity is critical for applications in fintech, e-commerce, and resource management, including the country's large mining industry.

Regional Market Reach From a base in Chile, businesses can effectively serve a population of over 19 million people. The country's robust infrastructure also makes it a strategic point for delivering services to neighboring markets like Argentina, Peru, and Bolivia.

Tax Advantage For Data Centers While Chile does not offer specific tax incentives for data centers, its primary advantage is a clear and stable tax framework. The standard 19% VAT provides predictability for financial modeling, which is a key benefit for foreign companies making long-term capital investments.

Natural Disaster Risk

Chile has a moderate overall disaster risk profile, with an INFORM Risk score of 3.2 out of 10 as of September 2025. The risk landscape is dominated by geologic and coastal hazards, which are well-understood and mitigated in modern infrastructure design.

Key natural hazards include:

• Earthquake (9.6/10): This is the most significant risk. Data centers and commercial buildings are constructed to some of the world's most advanced seismic engineering standards to ensure operational continuity.
• Tsunami (8.6/10): A material risk for coastal areas. Critical infrastructure is typically sited at safe elevations and distances from the coast.
• River Flood (5.5/10): A moderate risk in specific basins, managed through site selection and facility engineering.
• Coastal Flood (2.7/10): A lower-level risk that primarily affects immediate coastal zones.