Data center surface area and capacity in Chile continues to grow

At the end of the first half of the year, the surface area occupied by this type of facilities had doubled compared to the same time last year, reaching its highest point since records began. Installed capacity also recorded a significant increase. 

The data center industry has been steadily growing in recent times, and it is expected to maintain an upward trend in the coming years, according to Chilean business publication Diario Pulso. In the first half of the year, the installed capacity of data centers in Chile increased by more than 66% compared to the same period last year, rising from 119 MW to 198 MW. 

Data centers or «data processing centers» are defined as «a large facility, structure, or building where a large quantity of electronic equipment, such as servers, fans, connections, and other necessary resources, is housed and maintained; this equipment is used to maintain a network or a system of computers, information, connections, and data belonging to one or more companies,» explains real estate services company Colliers. 

By the end of June, this industry had reached a total surface area of 670,000 square meters, more than doubling the space used by this type of projects in the first half of 2023. At that time, data centers occupied a total of 330,000 square meters, increasing by 103% to the current level. This is the highest point since records began, according to data from Colliers. 

The surface area occupied by the industry is distributed across a total of 31 data centers in operation. During the last year, the real estate services firm highlighted the entry of data centers like Scala in Curauma, a new data center from ODATA, and the expansion of Google's project. 

ODATA is currently the leading operator in terms of installed capacity, along with Google Cloud, which together account for 49% of the total market in no more than two data centers. Both companies have prioritized expansion over the construction of new facilities. This is «mainly due to the existing regulatory uncertainty in different areas of the country and the economies of scale generated, optimizing some operating costs,» said Colliers. 

Even so, there are plans for 35 future developments by various firms. Currently, there are more than 20,000 square meters under construction, equivalent to around 25 MW of installed capacity. 

This number of projects is at the highest level on record. «This is because many of these projects are expansions of data centers that are already in operation. But additionally, sectors have consolidated based on areas with proven feasibility in terms of regulations, latency, energy, and communities, among other factors,» said Colliers research consultant Augusto Matte. 

«The market continues to receive announcements of new entrants, such as Microsoft, and a large number of new positions and expansions for centers that are already in operation,» according to the study. Although there is still no certainty regarding the number of square meters that will be in operation by the end of the year, Matte assures that this is a growing market. 

«In addition to the submarine fiber optic cable project that will connect Chile with Asia, there is an optimistic stance from the authorities, providing energy initiatives and regulations for the full development of the industry in the coming years,» notes Colliers. 

Did you know that Santiago de Chile is one of the best cities to install data centers? Chile’s capital stands out for its technological infrastructure, connectivity, and institutional stability. Additionally, Chile has implemented a National Data Center Plan.