Data Centers in Chile

Chile – South America's Pacific Connectivity Hub

Executive Summary

Chile is the primary digital hub for businesses targeting the Pacific coast of South America. Its combination of robust fiber optic connectivity, direct cloud access, and political stability provides a secure, low-latency environment for mission-critical applications and regional data aggregation. This makes Chile an exceptional choice for companies requiring a reliable foothold for growth in Latin America.

Chile: At A Glance

Network & Connectivity Ecosystem

Chile boasts the most developed and liberalized telecom market in Latin America, offering superior connectivity options for colocation and cloud access.

Carrier Density & Carrier Neutrality: With over 20 carriers operating in the country as of September 2025, businesses have extensive choice. The market features numerous carrier-neutral facilities, primarily in the Santiago metropolitan area, ensuring competitive pricing and redundant network design options.

Direct Cloud On-Ramps: There are 5 direct cloud on-ramps connecting to 5 distinct cloud regions as of September 2025. This enables low-latency, private connections to all major hyperscalers, including AWS, Google Cloud (GCP), Microsoft Azure, and Oracle Cloud.

Internet Exchange Points (IXPs): The primary exchange, PIT Chile, is critical for keeping domestic traffic within the country, which reduces latency and transit costs for users. Most significant peering occurs directly within major data centers.

Bare Metal: Bare metal server options are readily available from multiple providers. Global suppliers like Latitude.sh and Hivelocity offer dedicated server solutions for workloads requiring maximum performance and control.

Power Analysis

Chile's power infrastructure is a key asset, characterized by a progressive energy policy and a reliable grid.

Average Cost Of Power: Industrial power rates typically range from USD $0.11 to $0.15/kWh as of September 2025. This competitive pricing, combined with a high percentage of renewables in the national grid, offers predictable long-term operational costs.

Power Grid Reliability: The power grid, particularly in the Santiago region where data centers are concentrated, is modern and reliable. Major colocation facilities are supported by redundant power feeds from separate substations, adhering to international uptime standards.

Market Access, Business & Tax Climate

Chile's stable economy and business-friendly environment make it a secure location for digital infrastructure investment.

Proximity To Key Business Districts: Data centers are located strategically near Santiago's financial, technological, and commercial districts. This proximity provides single-digit millisecond latency to the country's most important corporate headquarters and financial exchanges.

Regional Market Reach: From Santiago, businesses can effectively serve markets across the Southern Cone, including Argentina, Peru, and Bolivia. Chile's stable infrastructure also makes it an ideal disaster recovery location for companies with primary operations in other Latin American countries.

Tax Advantage For Data Centers: Chile does not offer specific tax incentives for data center construction or operation. The advantage lies in its clear and stable tax framework, which avoids the uncertainty of temporary programs and simplifies long-term financial planning.

Natural Disaster Risk

Chile has a Medium overall disaster risk profile, with a score of 3.2 out of 10 as of September 2025. The risk landscape is dominated by geologic hazards, which are addressed with advanced engineering and strict building codes.

• Earthquake Risk: High (9.6/10). This is the most significant natural hazard. Data centers in Chile are purpose-built to the highest seismic standards in the world, ensuring operational continuity.
• Tsunami Risk: High (8.6/10). This risk is confined to coastal areas. Data center and cloud infrastructure is located well inland, primarily around Santiago, and is not directly exposed.
• River Flood Risk: Moderate (5.5/10). Site selection for critical facilities typically avoids flood-prone zones, mitigating this risk through proper location and engineering.