According to the analysis prepared by the real estate services company Cushman & Wakefield, Chile's capital city, which has 13 sites and an average annual demand of 15 MW, stands out because of its technological infrastructure, connectivity and institutional stability.
Chile continues to position itself as a digital hub in Latin America. Proof of this is the large number of foreign technology companies that have created a presence in the country with the aim of providing services locally and abroad.
Amazon, Google, Huawei and Oracle are just a few of the many companies that have set up sites on this side of the world, and many of them have turned to cities that have characteristics that position them as technology hubs.
Data centers have become a great solution for information storage regardless of the size or amount of data that companies generate. Latin America has experienced a significant increase in their use in recent years, especially after the pandemic.
Which are the most attractive cities for data center investments in Latin America?
According to an analysis of the data center boom and its relationship to countries’ geography and economies prepared by the real estate services company Cushman & Wakefield, Santiago (Chile) and São Paulo (Brazil) are the most attractive cities for this type of infrastructure.
São Paulo, Brazil's main financial center, has the most advanced data center market in South America, with 42 physical spaces for storing large volumes of data and a total capacity of 299 MW.
Its attractiveness is due to its strategic position as an economic hub and its advanced telecommunications infrastructure and fiber optic connectivity, Sebastian Solis, the consulting firm’s Valuation & Advisory Manager, explained in a statement.
This city is followed by Campinas, also in Brazil, which has 13 facilities and a capacity of 132.96 MW.
Chile: Infrastructure, connectivity and institutional stability
Chile’s capital has the same number of sites built to date and ranks 50th globally, with an average annual demand of 15 MW.
«This market’s demand has been steadily increasing since 2016. It also has made important progress in geographic connectivity infrastructure and the development of electric power for the efficient operation of data centers,» the executive explained.
The country's institutional stability is another important factor in this equation. «This positions it as one of the most advanced and attractive data center markets in the region,» Solis said.
Growth potential
Solis noted that the growing appetite of technology companies looking to store and process data is expected to continue to drive data center development in South America in the coming years.
«Data centers are long-term investments -30 years or more- that have shown fairly stable behavior in recent years. We have found that projects tend to be built in stages and are expanded according to customer or market demand,» he concluded.
To learn more about Chile’s technology sector and business opportunities in the country, check out the following article.
Source: Diario Financiero
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