Amazon (AMZN) Announces Huge $4B AWS Investment in Chile

Tech giant Amazon (AMZN) announced on Wednesday that it will invest over $4 billion to build its first AWS cloud infrastructure region in Chile, which is expected to open by the end of 2026. This will be Amazon’s third AWS region in Latin America, after Brazil and Mexico. The new Chile region will include three availability zones to improve data storage options, reduce latency, and support important industries like finance, retail, education, and government. Amazon’s investment will fund the construction, operation, and maintenance of the new data centers. The company also plans to hire and train local workers.

It is worth noting that the new AWS region will be designed with the environment in mind. Indeed, it will use energy-efficient, mostly air-cooled technology to reduce water use, which is important in Chile since it is prone to droughts. Amazon also said that it has been using 100% renewable energy in the region since 2023. In addition to this, the company has already trained over 100,000 people in Chile in cloud-related skills and continues to offer digital education through programs like AWS Academy and AWS Educate to help improve local technology skills.

Amazon’s expansion into Chile indicates that it is confident in the country’s tech sector and shows that it is committed to sustainability and digital growth. The move is also expected to boost innovation, create new jobs, and help the local economy. It will also strengthen AWS’ position in Latin America’s cloud services market, which is expected to grow by more than 20% per year through 2028.

Is Amazon Stock Expected to Rise?

Turning to Wall Street, analysts have a Strong Buy consensus rating on AMZN stock based on 48 Buys and one Hold assigned in the past three months, as indicated by the graphic below. Furthermore, the average AMZN price target of $241.59 per share implies 27.9% upside potential.

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