Like the rest of Latin America (LATAM), Chile was introduced to the internet and the concept of a digital economy in the mid-1990s. Since then, its government has invested heavily in policies and initiatives that support the development of the country’s digital infrastructure. These policies include tax incentives for startups and foreign companies willing to invest in the country, technology incubation programs and initiatives to promote the development and penetration of broadband infrastructure across the country.
Today, Chile is the world’s largest producer of copper, which has helped create one of the most vibrant and fastest growing economies in LATAM. But the country—ranked number one for its business environment in LATAM for the 2022-26 forecast period[1]—is also home to a growing number of companies providing banking and financial services, retail and consumer goods, energy and telecom products.
This convergence of international companies has made Chile a regional hub for technology and digital services, creating an ecosystem of universities, startups and other corporations eager to take advantage of its growing digital infrastructure.
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Supportive business environment in strategic location enables growth
Chile represents the confluence of strengths in finance, government and geography, making it a logical choice for companies looking to expand their presence in LATAM.
First, the country has LATAM’s fourth highest overall GDP[2] and its highest per capita GDP.[3] Santiago, Chile’s capital and largest city, is also home to more than seven million people, making it the sixth largest metro (by population) in LATAM.
Chile is also known for having one of the most supportive business environments in LATAM for startups. It offers:
- a wealth of funding from venture capital firms, angel investors and government programs
- access to a well-educated and highly skilled workforce
- technology incubators and co-working spaces that provide mentorship and resources to entrepreneurs
- universities and R&D organizations that offer opportunities for collaboration and innovation
Perhaps most importantly, Chile is a landing point for eight major subsea cables, with five at Valparaiso, less than 75 miles from Santiago. Subsea cables enable high-speed connections between Chile and companies in North and South America. Plans for new cables such as the Humboldt Cable System, will connect Valparaiso with Australia and then beyond, making Chile a convenient jumping off point for companies looking to connect routinely—and quickly—with businesses in the Asia Pacific region.
Equinix invests in Chile, expands presence in LATAM
The Chilean data center market, centered around Santiago, is the 3rd largest such market in LATAM by operational space; it is expected to grow at a CAGR of 7.27% from 2022-2028.[4]
Chile also benefits from abundant supplies of non-conventional renewable energy (NCRE) including solar, wind and hydroelectric which can help power its data centers with clean, sustainable energy. Renewable resources now account for 45% of the country’s electricity generation[5], with more than 19% coming from solar photo voltaic sources.[6] Chile has set a goal of becoming carbon neutral by 2050.
Against this backdrop, Equinix recognized that Chile would play a critical role in the expansion of LATAM’s digital infrastructure. That’s why in May, 2022 we acquired four data centers in Santiago from Empresa Nacional De Telecomunicaciones S.A. (“Entel”), a leading Chilean telecommunications provider.
The acquisition made Equinix the largest provider of data center colocation services in Chile, bringing the best of Platform Equinix® to Chilean businesses and multinationals looking to expand into Chile. It also extended our data center footprint in LATAM to five countries—Chile plus Brazil, Mexico, Columbia and Peru, allowing us to help meet growing demand for digital infrastructure throughout the region.
Investments will increase capacity and introduce digital services
Until now, Chile’s digital infrastructure has been focused primarily on data center colocation services for retail and wholesale customers doing business in country. And much of this data traffic has traveled on the public internet which can expose users to unwanted security, reliability and cost challenges.
Investments by Equinix in Chile’s digital infrastructure will change all of that. First, we’re expanding the capacity of our new data centers, providing growth opportunities for current customers. Access to our worldwide network of Equinix IBX® data centers and Equinix digital services (Equinix Fabric®, Equinix Metal® and Network Edge) will follow.
These digital services will open a new world of partnerships and facilitate time-sensitive, low-latency transactions among businesses, regional cloud services and hyperscalers, network service providers and others—a positive change from traditional infrastructure, where all data traffic had to pass through a centralized data center. Soon, Chilean companies will be able to connect quickly, securely and sustainably to markets and new opportunities worldwide via Equinix Fabric software-defined interconnection.
Digital infrastructure expands industry-specific capabilities
Deploying digital infrastructure on Platform Equinix will have a transformative effect on Chile’s largest industries. Companies in the mining industry, for example, will be equipped to better manage, store and use their increasing volumes of mining operations data. They will also be able to process and analyze collected data to streamline mining processes, reduce waste and better understand trends in customer purchasing behavior. And they will be able to deal more effectively with pricing volatility, production pressures and supply chain uncertainties as they move forward into the digital future of mining.
Equinix interconnection services will help financial and retail service providers future proof their businesses by connecting with thousands of potential global partners and customers in digital ecosystems—quickly, securely and cost-effectively. This streamlined communication will lead to faster, more effective access to credit card networks, multinational payment systems, and the latest banking systems. Reliable, high-speed interconnections will also give companies in Chile a critical layer of redundancy to ensure business continuity in the event of a local or natural disaster.
Accelerate digital transformation on Platform Equinix
Of course, companies in Chile are not unique in their pursuit of digital transformation. No matter how you plan to progress your company’s digital transformation, you’re still going to need to establish a digital presence in the right places, connect with an ecosystem of the right partners and service providers, and deploy the right infrastructure to power applications and connect with end users. As the world’s digital infrastructure company™, Equinix provides customers with these capabilities worldwide.
By deploying on Platform Equinix, you can tap into the full power of vendor-neutral Equinix IBX colocation data centers in 70+ metros worldwide, connect with 3,000+ cloud and IT service providers and 2,100+ network service providers from the Equinix partner ecosystem, and take advantage of on-demand digital services that help you get the infrastructure you need, when you need it.
To learn more about how Equinix can help you establish or expand your business footprint in Chile, read our data sheet about our data centers in Santiago.
[1] Economist Intelligence – EIU – 2022 Rankings Overview
[2] Statista – GDP in Latin America and the Caribbean in 2021
[3] International Monetary Fund (IMF) DataMapper, October 2022
[4] Chile Data Center Market – Investment Analysis & Growth Opportunities 2023-2028, Arizton Advisory & Intelligence, March 2023
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