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Chile – A Stable Hub for South American Digital Services
Chile stands as a premier destination for digital infrastructure in Latin America, offering a stable economic and political environment ideal for businesses serving the Pacific coast of South America. Its advanced connectivity and significant investment in renewable energy make it a resilient and efficient choice for deploying critical workloads, minimizing risk while maximizing reach into the region.
Chile: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong international connectivity via submarine cables, though terrestrial cross-border options are developing. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | The nearest major cloud hub is São Paulo, Brazil. Private network extensions are available. |
| Power Cost | CLP $90.00-$110.00/kWh (est.) | High reliance on renewables (≈70%) contributes to a stable and increasingly green power grid. |
| Disaster Risk | Moderate (3.2/10) | Primarily driven by high seismic and tsunami risk, requiring purpose-built, resilient data center designs. |
| Tax Incentives | No | Chile does not offer specific tax incentives for data center development or operation. |
| Sales Tax | 19% VAT – as of September 2025 | Standard Value Added Tax applies to most goods and services. |
Network & Connectivity Ecosystem
Chile's network environment is one of the most developed in South America, characterized by robust international links and a competitive local market.
Carrier Density & Carrier Neutrality Data centers in Chile provide access to a diverse mix of international and regional providers, as of September 2025. Carrier-neutral facilities in the Santiago metropolitan area offer the most options for building redundant, high-performance networks.
Direct Cloud On-Ramps There are no direct cloud on-ramps within Chile, as of September 2025. Businesses requiring dedicated cloud access typically establish private network connections to major cloud regions in São Paulo, Brazil. This ensures secure, low-latency interconnection for hybrid cloud architectures.
Internet Exchange Points (IXPs) The primary internet exchange is PIT Chile, which facilitates the majority of local traffic peering. Its presence in Santiago is critical for reducing latency for Chilean end-users and improving overall network efficiency by keeping domestic traffic within the country.
Bare Metal Bare metal server options are readily available from providers serving the Latin American market. Companies like Latitude.sh offer dedicated server solutions from facilities within Chile, providing raw performance for compute-intensive applications.
Power Analysis
Chile's power infrastructure is a key advantage, combining reliability with a strong commitment to renewable energy sources.
Average Cost Of Power Industrial power costs are estimated between CLP $90.00 and CLP $110.00 per kWh, as of September 2025. The country's energy mix is dominated by renewables (approximately 70%), offering predictable pricing and supporting corporate sustainability goals.
Power Grid Reliability The national power grid is reliable, particularly in the Santiago metropolitan region where major data centers are located. These facilities are supported by redundant power feeds from multiple substations, ensuring high levels of uptime for critical operations.
Market Access, Business & Tax Climate
Chile provides a secure and business-friendly environment for accessing both local and regional markets.
Proximity To Key Business Districts Most data centers are concentrated in and around Santiago, providing low-latency connectivity to the nation's financial center and corporate headquarters. This proximity is essential for financial services, retail, and media industries.
Regional Market Reach Strategically located on the Pacific coast, Chile is a natural digital gateway for serving Argentina, Peru, and Bolivia. It is also a key landing point for trans-pacific submarine cables connecting South America with Asia-Pacific, offering unique routing advantages.
Tax Advantage For Data Centers The country maintains a straightforward tax framework without specific incentives for the data center industry. This creates a level playing field for all operators, with clear regulations governing investment and operations.
Natural Disaster Risk
Chile's geography necessitates a focus on infrastructure resilience. The national disaster risk profile is moderate, requiring careful site selection and facility engineering.
Based on the INFORM Risk Index, Chile has a moderate overall risk score of 3.2 out of 10, as of September 2025. The primary natural hazards contributing to this score include:
- Earthquake: 9.6/10
- Tsunami: 8.6/10
- River Flood: 5.5/10
- Coastal Flood: 2.7/10
The extremely high earthquake and tsunami risk ratings mean that data centers must be constructed to the highest seismic standards. While the risk from tropical cyclones is nonexistent (0/10), operators must plan for seismic activity as a primary concern.
