Narayan AmmachchiMicrosoft has launched its first cloud region in Chile, establishing a significant digital footprint in the Southern Cone. The new region — named Chile Central —is based in Santiago and comprises three physically independent sites, each hosting one or more data centers.
The facilities are powered entirely by renewable energy, thanks to a partnership with AES Andes, which supplies power generated from solar and wind sources. This marks a milestone in Microsoft’s sustainability efforts and sets a new benchmark for hyperscale deployments in Latin America.
Chile Central is also being touted as the first cloud region in the Southern Cone to offer sovereign data residency. Microsoft says all data storage and processing will occur within Chile’s borders, a crucial advantage for sectors with strict compliance requirements such as banking, healthcare, and government. Analysts believe this opens the door for these sectors to migrate mission-critical workloads to the cloud with confidence.
In a bid to conserve resources, the data centers use non-evaporative cooling technologies — including air-cooled chillers and direct expansion (DX) systems — that minimize water consumption.
According to IDC, Microsoft and its partner ecosystem are expected to drive $35.3 billion in new revenue across South America over the next four years. Chile alone is set to attract $3.3 billion of that investment, potentially creating around 81,000 jobs between 2025 and 2029.
Key Microsoft customers in Chile include BCI, Codelco, Aguas Andinas, Banco Falabella, SQM, and Theodora AI.
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