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• Amazon Web Services received approval to move ahead with its Santiago data center project after residents lost an environmental challenge.
• Local residents had opposed the project over concerns related to a possible high-voltage power line and environmental impact.
• AWS said the facility is being designed to minimise energy and water consumption while meeting Chile’s environmental requirements.
• The project is part of AWS’ planned USD 4 billion investment in Chile over the next 15 years.
• Experts said Chile’s growing appeal for data center investments must be balanced with environmental and community concerns.
Amazon Web Services is moving ahead with its planned data center development on the northern outskirts of Santiago after Chilean environmental authorities allowed the project to proceed despite opposition from local residents concerned about its environmental impact. Advertisement
Residents living near the proposed site had challenged the project, arguing that the environmental permit failed to consider the likely construction of a high-voltage transmission line that could be required to power the facility. However, authorities ruled in the past month that any future plans for such infrastructure would need to undergo a separate environmental review process.
The proposed data center complex is planned in a hilly area below the Andes mountains, around 8 kilometres north of Santiago’s city centre. Residents in the area said the green space plays an important role for the local community, serving as a recreational and natural zone within the expanding urban landscape.
Local resident Patricio Hernandez said the hill was an important community space that provided greenery and relief from the dense city surroundings. Residents fear that the project and related infrastructure development could significantly alter the character of the area and affect the surrounding environment.
The development comes as global investment in data centers continues to accelerate due to rising demand for cloud computing, digital storage and artificial intelligence infrastructure. However, such projects have increasingly faced criticism in several countries over concerns linked to heavy electricity consumption, water usage, noise pollution and environmental stress on local communities.
AWS stated that the Santiago project has been designed with a focus on resource efficiency and environmental compliance. Rafael Mattje, technology chief for AWS Southern Cone, said the company aimed to minimise both energy and water consumption through the use of advanced infrastructure technologies. The company also stated that the project had met Chile’s environmental requirements.
Last year, AWS announced plans to significantly expand its presence in Chile as part of its wider Latin American growth strategy. The company has committed to investing more than USD 4 billion over the next 15 years to build, operate and maintain cloud infrastructure in the country. Chile is expected to become AWS’ third major regional hub in Latin America after São Paulo in Brazil and central Mexico.
Chile has increasingly emerged as a preferred destination for data center developers due to its strong fiber-optic connectivity, stable digital infrastructure and supportive policy environment. Industry experts believe the government’s efforts to simplify approval procedures and attract foreign investment could further boost interest from global technology firms.
At the same time, urban development and sustainability experts have warned that rapid expansion of data center infrastructure must be balanced with environmental protection and community interests. Sebastian Diaz, a specialist in sustainable cities and former adviser to Chile’s national data center strategy, said Chile’s growing attractiveness for technology investment also brings responsibility to manage long-term environmental and social impacts carefully.
AWS expects the Santiago facility to operate for nearly 30 years once completed. The project will become part of the company’s wider global network of more than 900 data centers and cloud infrastructure facilities worldwide.
Source Reuters
5th Jun, 2025
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