Chile Data Center Colocation Market - Supply and Demand Analysis, Size, Share, and Forecast 2026-2031 | AI, Cloud, and Hyperscale Investment Fuel 15.47% CAGR
Dublin, Oct. 07, 2026 (GLOBE NEWSWIRE) -- "Chile Data Center Colocation Market - Supply & Demand Analysis 2026-2031" has been added to ResearchAndMarkets.com's offering.
The Chile data center colocation market is projected to expand at a CAGR of 15.47% from 2026 to 2031, supported by cloud adoption, artificial intelligence, digital transformation, hyperscale investment, improved fiber connectivity, and government initiatives designed to establish the country as a leading Latin American digital infrastructure hub.
Recent Market Development
In September 2025, Ascenty inaugurated its third Chilean data center in Quilicura. The $114-million, 16-MW facility operates on 100% renewable energy and incorporates a closed-loop cooling system that reduces water consumption almost to zero. The project reflects the market's growing focus on sustainable capacity expansion amid Chile's prolonged water scarcity.
Utilized Area and Rack Capacity
The Chile data center colocation market is expected to reach 1,602.6 thousand square feet of utilized area by 2031. Santiago remained the country's primary data center location in 2025, attracting investments from Ascenty, Equinix, SONDA, and Gtd as demand for colocation, cloud services, and enterprise digital infrastructure continued to rise.
Utilized rack capacity is forecast to reach 45.12 thousand units by 2031. Chilean data centers primarily deploy 42U racks, while configurations ranging from 36U to 52U support varying operational requirements. Most installations use a standard width of 19 inches to maintain compatibility with global IT hardware.
Chile Data Center Colocation Market Trends and Drivers
Chile's inland fiber networks and submarine cable infrastructure are strengthening its position as a strategic South American data transit center. The country currently operates eight submarine cables, with one additional system expected to enter service by 2029. Projects such as the Humboldt Cable are expected to increase bandwidth, reduce latency, and improve connectivity for cloud platforms, broadband services, and digital applications.
In January 2025, Chile announced a $2.2-million feasibility study for a subsea cable connecting its southernmost province with Antarctica. Led by the Undersecretariat of Telecommunications and regional partners, the proposed system could improve data transmission and scientific collaboration for Antarctic researchers.
Government policy is also encouraging data center investment. Chile launched its National Data Center Plan, known as PDATA, in December 2024 to streamline permitting, strengthen regulatory coordination, support territorial decentralization, and expand public-private collaboration. The plan targets a threefold increase in the country's data center industry by 2030 while promoting sustainable regional development.
PDATA includes coordinated infrastructure planning, digital monitoring of electricity availability, and simplified investment procedures. An inter-ministerial committee has also been established to accelerate approvals and coordinate implementation across relevant government agencies.
Market Restraints
Water scarcity, natural disaster exposure, limited suitable land, and extended environmental approval processes remain significant constraints. Data center projects must meet resilient construction standards due to earthquake and tsunami risks while also addressing water consumption, waste management, and ecological impact requirements.
Chile has experienced severe drought conditions for more than a decade, affecting residential supply, agriculture, and industrial operations. Community concerns have increased in Santiago and other areas where new water-intensive developments could place additional pressure on aquifers. These conditions are encouraging operators to adopt alternative cooling technologies and prioritize sites with stronger environmental and infrastructure profiles.
Colocation Demand and Revenue
In 2025, the cloud & IT segment accounted for approximately 62% of Chile's colocation demand. Growth was driven by enterprises transferring CAPEX workloads to managed environments and expanding their use of cloud infrastructure.
Wholesale colocation generated the largest share of market revenue in 2025. Santiago Metropolitan Region remained the principal center of activity, while hyperscale deployments and new colocation projects supported continued expansion. Chile's stable business environment, increasing AI adoption, strong connectivity, and growing demand for scalable computing capacity are expected to sustain wholesale and retail colocation revenue through 2031.
Report Coverage
Vendor Landscape
Existing Chile data center colocation operators include Ascenty, Cirion Technologies, EdgeConnex, Equinix, Scala Data Centers, ClaroVTR, ODATA (Aligned Data Centers), GTD, IPXON Networks, SONDA, and other providers. TECfusions has been identified as a new operator entering the Chile data center industry.
Key Questions Addressed
Key Topics Covered
1. ABOUT THE ANALYST
2. ABOUT OUR DATA CENTER CAPABILITIES
3. RESEARCH METHODOLOGY
4. MARKET SCOPE
5. MARKET DEFINITIONS
6. MARKET SNAPSHOT
7. SUPPLY & DEMAND ANALYSIS
8. MARKET GROWTH FACTORS
9. COLOCATION REVENUE & PRICING ANALYSIS
10. MARKET DYNAMICS
11. COMPETITIVE LANDSCAPE
12. QUANTITATIVE SUMMARY
A selection of companies mentioned in this report includes, but is not limited to:
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