Chile Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

Chile Data Center Market Analysis

The Chile Data Center Market size is estimated at 338.3 MW in 2025, and is expected to reach 554.5 MW by 2030, growing at a CAGR of 10.38%. Further, the market is expected to generate colocation revenue of USD 2,591 Million in 2025 and is projected to reach USD 4,530.5 Million by 2030, growing at a CAGR of 11.82% during the forecast period (2025-2030).

The Chilean data center market is experiencing a significant transformation driven by the rapid digitalization of businesses and government services. The public sector has emerged as a substantial contributor to IT spending, accounting for 17% of all IT company expenditure in 2022, reflecting the government's commitment to digital transformation. This digital push has led to increased demand for advanced data center infrastructure, particularly in Santiago, which hosts over 85% of the country's data center capacity. The convergence of public and private sector initiatives has created a robust ecosystem for data center operations, with many organizations implementing hybrid IT strategies that leverage both hosted data centers and multi-cloud architectures.

The market is witnessing a notable shift in payment technologies and e-commerce infrastructure, which is driving demand for sophisticated data center services. Recent data shows that cards are the predominant payment method for internet purchases in Chile, accounting for 55% of transactions, while digital wallets and bank transfers represent 14% and 13%, respectively. This diverse payment ecosystem requires robust data processing capabilities and secure infrastructure, leading to increased investments in advanced data center facilities that can handle complex financial transactions and ensure data security.

The evolution of data center tiers is reshaping the market landscape, with a clear preference for higher-tier facilities. The market structure shows a distinctive distribution with Tier 4 facilities commanding 60.7% of the market share, followed by Tier 3 facilities at 37.9%, while Tier 1 and 2 facilities account for only 1.4%. This distribution reflects the industry's focus on reliability and uptime, with organizations increasingly migrating to higher-tier facilities that offer enhanced redundancy and operational excellence. The trend is particularly evident in the financial and e-commerce sectors, where uninterrupted service availability is crucial for business operations.

The market is characterized by significant infrastructure developments and strategic expansions by major cloud service providers. Companies like Google, Oracle, and Microsoft are establishing cloud data center regions in Chile, while Amazon Web Services (AWS) is planning to build a cloud data center area in Santiago, complementing its existing CloudFront Edge site. These developments are accompanied by the construction of new data center facilities, with operators focusing on Tier 3 and Tier 4 certifications to meet the growing demand for high-reliability services. The expansion is particularly notable in Santiago's digital hub, which serves both local businesses and regional cloud requirements, positioning Chile as a strategic location for data center operations in Latin America.

Chile Data Center Market Trends

Rollout of the 5G network, and increasing data usage for business, entertainment, and education drives the market growth

• The total data traffic per smartphone in the country was 4.00 GB in 2022 and is expected to witness a CAGR of 12.67% during the forecast period, reaching a value of 9.22 GB by 2029.
• The year 2022 was notable for the rollout of the 5G network, as Entel managed to complete 100% of its first stage within the first year, being present in all regions, covering 270 communes, and having more than one million subscribers who could utilize this new technology. The use of mobile data in that year increased by 33% over the national average, whether it was for business, entertainment, or education. Comparing December 2021 and December 2022, the Norte Grande's three regions—Tarapacá, Antofagasta, Arica, and Parinacota—stood out among those with the highest growth rates. These three regions saw significant gains of 78%, 72%, and 68%, respectively. The increased internet usage and the adoption of more smartphones are factors contributing to the rise in smartphone internet traffic.

The high internet penetration and smartphone technology adoption by various businesses and growing digital usage across the businesses drives the market demand

• The total number of smartphone users in the country was 15.01 million in 2022 and is expected to witness a CAGR of 3.01% during the forecast period, reaching a value of 19.26 million by 2029.
• In Chile, smartphone usage increased by more than 4% between 2020 and 2021, indicating that more individuals turned to cellphones during the COVID-19 pandemic. Notably, smartphone penetration has been growing significantly in recent years. Consequently, more people are purchasing cell phones, and this trend is expected to continue, leading to an increase in the number of smartphone users nationwide.
• E-commerce is also experiencing steady growth throughout the country. In 2020, Chile's average annual revenue per paying user amounted to USD 913. Chilean shoppers make a high percentage of cross-border e-commerce purchases, with 69% of these transactions being international. As a result, vast amounts of data are generated, leading to an increased demand for data centers across the nation.
• The growing smartphone usage has led to a higher demand for servers that power these devices. To accommodate the unpredictable data flow generated by the expanding use of smart devices, increased storage space is required. Consequently, the rising need for smart devices in the market necessitates the expansion of data centers.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

Segment Analysis: By Data Center Size

Large Segment in Chile Data Center Market

The large data center segment dominates the Chilean market with approximately 41% market share in 2024, representing an IT load capacity of 123.16 MW. The segment's prominence is driven by the increasing processing capacity requirements and extensive use of cloud services across industries. Santiago hosts the maximum concentration of large data centers, with more than 60% being Tier 3 certified facilities, while the remaining are Tier 4 facilities. Major operators like Ascenty maintain a significant market presence with substantial IT load capacities, while other key players such as EdgeConnex, Scala Data Centers, and Ascenty continue to invest in constructing new large data center facilities to meet growing demand.

Massive Segment in Chile Data Center Market

The massive data center segment is projected to exhibit the highest growth rate of approximately 19% during 2024-2029, driven by increasing demand for high-capacity data processing and storage facilities. The segment's robust growth is supported by ongoing data center construction projects from prominent operators like ODATA and Scala Data Centers. The expansion is particularly notable in Santiago, where these facilities are being developed to accommodate the rising needs of cloud service providers, telecommunications companies, and large enterprises. The implementation of 5G technology and industrial digitalization are key factors propelling the demand for massive data centers, as they provide the necessary infrastructure to handle large-scale data processing requirements.

Remaining Segments in Data Center Size Market

The medium and small segments play crucial roles in serving specific market niches within Chile's data center landscape. Medium-sized facilities cater primarily to regional businesses and organizations requiring moderate data processing capabilities, with most facilities maintaining Tier 3 certification standards. The small segment, while representing a smaller market share, continues to serve local businesses and organizations with specific data processing needs. These segments provide important diversity in the market, offering solutions for businesses with varying scales of operation and data processing requirements. The market currently has no mega data centers, though future developments may emerge as the digital infrastructure continues to evolve.

Segment Analysis: By Tier Type

Tier 4 Segment in Chile Data Center Market

The Tier 4 segment dominates the Chile data center market, commanding approximately 51% market share in 2024, while also exhibiting the strongest growth trajectory with a projected growth rate of nearly 20% during 2024-2029. The segment's prominence is driven by the increasing demand from hyperscale data center facilities, which are experiencing high demand due to extensive cloud services adoption and Industry 4.0 implementation. Major operators like SONDA, ODATA, Equinix Inc., and Claro are actively operating Tier 4 certified facilities in Santiago, with ODATA leading the segment with a 28 MW capacity facility. The segment's robust growth is further supported by the rising processing capacity requirements and the deployment of advanced technologies across various industries, particularly in cloud computing, big data analytics, and IoT applications.

Remaining Segments in Tier Type Segmentation

The Tier 3 segment represents a significant portion of the market, offering a balance between reliability and cost-effectiveness for businesses. These facilities provide robust infrastructure with redundant components and multiple distribution paths, making them suitable for enterprises requiring high availability without the premium costs associated with Tier 4 facilities. Meanwhile, the Tier 1 & 2 segment caters to small companies and startups with basic requirements, offering the most affordable option with standard uptime guarantees. While these lower-tier facilities continue to serve specific market niches, their relative importance is gradually diminishing as businesses increasingly prioritize higher reliability and advanced infrastructure capabilities offered by Tier 3 and Tier 4 facilities.

Segment Analysis: By Absorption

Utilized Segment in Chile Data Center Market

The utilized segment dominates the Chilean data center market, accounting for approximately 67% of the total IT load capacity in 2024. This significant market share is driven by the increasing adoption of data center solutions by various end-users, including cloud service providers, e-commerce platforms, the BFSI sector, telecom operators, and other businesses. The segment is experiencing robust growth due to the rapid digital transformation across industries, with end customers increasingly utilizing racks and servers for their operations. The expansion is particularly notable in Santiago, where major cloud hyperscale data centers are relocating their operations. The segment's growth is further supported by Chile's position as one of the largest e-commerce markets in Latin America, necessitating increased server usage and driving higher absorption rates. Additionally, the rising demand for computation and storage to support high-end applications, coupled with the country's excellent connectivity infrastructure and favorable business environment, continues to attract both domestic and international players to utilize data center facilities.

Non-Utilized Segment in Chile Data Center Market

The non-utilized segment represents the available capacity in Chilean data centers that remains unoccupied but ready for deployment. This segment plays a crucial role in the market by providing the necessary flexibility and scalability options for future expansion. Data center management strategies are crucial as operators maintain this unused capacity to accommodate sudden surges in demand and support the growing digital infrastructure needs of businesses. The segment's dynamics are influenced by factors such as new facility construction, expansion projects, and the gradual absorption of space by end-users. Market players strategically manage their non-utilized capacity to ensure optimal resource allocation while maintaining the ability to respond to emerging opportunities. This approach allows data center operators to balance current utilization with future growth potential, ensuring sustainable market development and meeting the evolving needs of Chile's digital economy.

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We provide a complimentary and exhaustive set of data points on the country and regional level metrics that present the fundamental structure of the industry. Presented in the form of 50+ free charts, the sections cover difficult to find data on various countries on smartphone users, data traffic per smartphone, mobile and broadband data speed, fiber connectivity network, and submarine cables.