Data Centers in Santiago

Santiago – Strategic Hub for Andean Digital Markets

Executive Summary

Santiago is the undisputed digital infrastructure leader for South America's Pacific coast. The market is built for businesses that require low-latency access to the growing economies of Chile, Peru, and Argentina. Its dense connectivity and direct cloud access provide a stable, high-performance platform to drive revenue and secure operations throughout the Andean region.

Santiago: At A Glance

Network & Connectivity Ecosystem

Santiago's ecosystem is mature and competitive, offering the best connectivity on the western coast of South America. Interconnection is straightforward, and the market provides multiple paths to ensure high uptime.

Carrier Density & Carrier Neutrality With over 24 network service providers present as of September 2025, Santiago offers deep connectivity options. The market features numerous carrier-neutral facilities, giving customers the freedom to choose providers and optimize for cost and performance without getting locked into a single network.

Direct Cloud On-Ramps The market has more than 4 dedicated cloud on-ramps serving 4 distinct cloud regions as of September 2025. This enables secure, high-speed private connections directly to major platforms, including:

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

Internet Exchange Points (IXPs) The primary exchange, PIT Chile, is central to the country's internet traffic, keeping data local and reducing latency for Chilean end-users. This strong public peering environment lowers transit costs and improves application performance significantly.

Bare Metal Bare metal server options are readily available from multiple providers in Santiago. Companies like Latitude.sh offer compute capacity ideal for performance-sensitive workloads that require dedicated, non-virtualized hardware.

Power Analysis

Average Cost Of Power Industrial power costs in Santiago typically range from $0.12 to $0.17/kWh as of September 2025. While not the cheapest in the world, the price reflects a stable grid with an impressive energy mix, where renewables account for approximately 70% of generation. This focus on green energy mitigates long-term price volatility.

Power Grid Reliability The power grid serving Santiago's main data center zones is reliable and well-engineered. Major colocation facilities are supported by redundant power feeds from multiple utility substations, ensuring high levels of uptime required for mission-critical operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers in Santiago are strategically located to serve the city’s primary financial and commercial districts. This proximity provides low-latency connectivity for the region's top banking, retail, and mining headquarters, which are heavily dependent on real-time data processing.

Regional Market Reach From Santiago, a single deployment can effectively serve the entire Chilean population of over 19 million people. It also acts as a strategic digital outpost for reaching users in western Argentina, Peru, and Bolivia with significantly better performance than connecting from Brazil or the United States.

Tax Advantage For Data Centers Chile does not offer specific tax incentives for data center development or operation. The primary financial advantage comes from operating within a transparent and stable business climate with clear regulatory frameworks, reducing unforeseen operational risks and costs.

Natural Disaster Risk

Santiago has a Moderate overall natural disaster risk profile, with an INFORM Risk score of 3.2 out of 10 as of September 2025. The risk profile is dominated by a single, well-understood hazard.

Data centers in this market are designed and operated with the following primary risks in mind:

• Earthquake: The most significant risk (9.6/10). Modern data centers in Chile are constructed to the world's highest seismic engineering standards to ensure operational continuity.
• River Flood: A secondary risk (5.5/10) that is highly localized and mitigated through proper site selection away from floodplains.