Chile Data Center Colocation Market Growth Insights – Utilized White Floor Area to Reach 1,602.6 Thousand Sq. Ft., Utilized Racks to Reach 45.12 Thousand Units, and IT Power Capacity to Reach 329 MW by 2031.

Chile Data Center Colocation Market – Supply & Demand Analysis 2026-2031

CHILE DATA CENTER COLOCATION MARKET SIZE

Chile data center colocation market size was valued at USD 248 million in 2025 and is expected to reach USD 588 million by 2031, growing at a CAGR of 15.47% during the forecast period. While electricity prices are relatively higher than in some Latin American markets, Chile's highly developed renewable energy sector and increasing availability of long-term renewable power purchase agreements (PPAs) make it an attractive destination for sustainable data center investments.

In 2025, Santiago remained the primary location for new data center developments in Chile, with operators such as Ascenty, Equinix, SONDA, and Gtd contributing substantial additional capacities. The city continued to attract large-scale investments due to rising demand for cloud services, colocation facilities, and broader digital transformation needs.

Chile is experiencing rapid growth in cloud service adoption, driven by a robust digital transformation strategy and increasing demand for scalable IT solutions. The expansion of data centers and enhanced connectivity infrastructure has positioned Chile as the regional leader in cloud technology.

In June 2025, Microsoft launched a new cloud region in Chile, which was its first one in the South American country. This comprises three independent physical locations, each with one or more data centers.

Chile has set an ambitious vision to prevent climate change and promote sustainability. The country's goals include achieving peak greenhouse gas emissions by 2030, reaching carbon neutrality by 2050, and attaining net-zero greenhouse gas emissions by 2065. This vision aligns with global efforts to mitigate climate change and underscores Chile’s commitment to a sustainable future.

Chile has strong global connectivity supported by eight active submarine cables, linking the country with Panama, Peru, and several other South American regions. Additionally, the Halaihai subsea system is under development and is expected to become operational by 2029, further strengthening Chile’s digital infrastructure.

RECENT DEVELOPMENTS & NEWS IN THE CHILE DATA CENTER COLOCATION MARKET

1. In September 2025, Ascenty inaugurated its third Chilean data center, a $114-million, 16-MW facility located in Quilicura. The site operates on 100% renewable energy and uses a closed-loop cooling system to reduce water consumption almost to zero.

CHILE DATA CENTER COLOCATION MARKET INSIGHTS BY UTILIZED AREA

The Chile data center colocation market by utilized area is expected to reach 1,602.6 thousand square feet by 2031. In 2025, Santiago remained the primary location for new data center developments in Chile, driven by rising demand for cloud services, colocation facilities, and broader digital transformation needs. The city continued to attract large-scale investments, with operators such as Ascenty, Equinix, SONDA, and Gtd contributing substantial additional capacity to meet the growing demand.

CHILE DATA CENTER COLOCATION MARKET INSIGHTS BY UTILIZED RACKS

The Chile data center colocation market by utilized racks is expected to reach 45.12 thousand units by 2031. Data centers in Chile primarily use 42U racks as the industry standard due to their versatility in supporting a wide range of IT equipment. This standard rack configuration is complemented by rack heights ranging from 36U to 52U, catering to diverse operational requirements. Most racks follow a standard width of 19 inches, ensuring compatibility with a broad range of global IT hardware and supporting the growing needs of colocation facilities.

CHILE DATA CENTER COLOCATION MARKET TRENDS & DRIVERS

Inland Connectivity in Chile

Chile has significantly improved its inland and submarine connectivity, establishing itself as a critical data transit center in South America. Investments in fibre optic networks and international submarine cables, such as the Humboldt Cable, are enhancing global data traffic and regional connectivity.

The country currently operates eight submarine cables and is developing one additional cable expected to go live by 2029. These multiple cable routes improve bandwidth capacity, lower latency, and support growing demand for broadband, cloud services, and digital applications essential to Chile’s economy.

In January 2025, Chile stated that it was conducting a $2.2-million feasibility study for a subsea cable to connect its southernmost province with Antarctica, aiming to enhance connectivity and scientific collaboration. Led by the Undersecretariat of Telecommunications and regional partners, this project could bring advanced digital tools and faster data transmission to researchers in Antarctica.

Increase in Government Initiatives

The Chilean government is actively positioning the country as a Latin American digital infrastructure hub through its National Data Center Plan (PDATA), launched in December 2024. The initiative aims to accelerate data center and colocation investments by streamlining permitting procedures, improving regulatory coordination, supporting territorial decentralization, and strengthening public-private collaboration.

One of the plan's primary objectives is to triple Chile's data center industry by 2030 while ensuring sustainable and balanced regional development. The strategy also includes digital tools to monitor electricity availability, coordinated infrastructure planning, and simplified investment procedures, creating a more predictable environment for colocation developers.

The government established an inter-ministerial committee to coordinate the implementation of the National Data Center Plan and facilitate faster project approvals for digital infrastructure investments.

INDUSTRY RESTRAINT

Imminent Water Crisis and Location Constraints

Chile’s exposure to natural disasters such as earthquakes and tsunamis makes selecting appropriate sites for data centers, particularly, complex. To avoid service interruptions during seismic events, facilities must incorporate resilient construction standards and comprehensive disaster recovery measures.

The site approval process is often prolonged, as developers must secure environmental permits that evaluate water consumption, waste management, and other ecological impacts. In addition, there is limited land available that meets the criteria required for large-scale data center developments.

Water scarcity further complicates the establishment of water-intensive facilities, especially as a prolonged drought and the overuse of aquifers have created additional pressure on local resources. Public resistance has grown in areas such as Santiago, where concerns over declining water availability have prompted communities to oppose new data center proposals.

Chile has endured a severe drought for over ten years, causing countrywide water shortages that affect various sectors, including agriculture, residential supply, and industrial operations. The data center sector, which typically demands significant volumes of water for cooling, is also facing the consequences of these conditions.

INSIGHTS BY COLOCATION DEMAND

Based on the colocation demand by industry, in 2025, Chile’s data center colocation market was dominated by the cloud & IT segment with a share of around 62%, reflecting rapid cloud activities as enterprises shift CAPEX workloads to managed environments. This trend was mirrored in market studies, showing strong colocation and cloud expansion across the country, with colocation capturing a large share of data-center revenue.

INSIGHTS BY COLOCATION REVENUE

In 2025, wholesale colocation accounted for the largest Chile’s data center colocation market share. Chile has established itself as one of Latin America’s leading colocation data center markets, with data center facilities across the country primarily concentrated in the Santiago Metropolitan Region. The market is expected to expand steadily during the forecast period as hyperscale investments and new colocation developments continue to increase.

This growth is further supported by strong cloud adoption, increasing AI and digital transformation initiatives, expanding fiber connectivity, and a stable business environment, which are expected to sustain the country’s colocation industry throughout the forecast period.

WHAT'S INCLUDED?

1. A transparent research methodology and insights on the colocation demand and supply aspect of the market.
2. Market size available in terms of utilized white floor area, IT power capacity, and racks.
3. Market size available in terms of Core & Shell Vs Installed Vs Utilized IT Power Capacity, along with the occupancy%.
4. A study of the existing Chile data center market landscape, with insightful predictions of data center market size during the forecast period.
5. An analysis of the current and future colocation demand in Chile by several industries.
6. The study on sustainability status in Chile.
7. Analysis of current and future cloud operations in Chile.
8. The snapshot of upcoming submarine cables in Chile.
9. Snapshot of existing and upcoming third-party data center facilities in Chile.
10. Facilities Covered (Existing): 39
11. Facilities Identified (Upcoming): 09
12. Coverage: 5 Cities
13. Existing vs. Upcoming (White Floor Area)
14. Existing vs. Upcoming (IT Load Capacity)
15. Data center colocation market in Chile.
16. Colocation Market Revenue & Forecast (2025-2031)
17. Retail Colocation Revenue (2025-2031)
18. Wholesale Colocation Revenue (2025-2031)
19. Retail Colocation Pricing along with Addons
20. Wholesale Colocation Pricing along with the pricing trends.
21. An analysis of the latest trends, potential opportunities, growth restraints, and prospects for the colocation data center industry in Chile.
22. Competitive landscape including market share analysis by the colocation operators based on IT power capacity and revenue.
23. Vendor landscape of each existing and upcoming colocation operator based on existing/ upcoming count of data centers, white floor area, IT power capacity, and data center location.

TARGET AUDIENCE

1. Data center Real Estate Investment Trusts (REIT)
2. Data center Construction Contractors
3. Data center Infrastructure Providers
4. New Entrants
5. Consultants/Consultancies/Advisory Firms
6. Corporate and Government Agencies

RESEARCH METHODOLOGY

1. Primary Research: Interviews/interactions with data center developers, colocation providers, contractors, system integrators, and infrastructure providers.
2. Secondary Research: Analysis of annual reports, financial filings, press releases, data sheets, white papers, industry blogs, and tender documents.
3. Historical Period: 2022–2024
4. Base Year: 2025
5. Forecast Period: 2026–2031
6. Approach: Market data is validated using primary industry inputs and secondary sources, with 2025 representing actual values and 2026–2031 representing forecast estimates.