Google To Build Datacentre

Google will build a new datacentre in Chile, aiming to cater to the exceptional growth in internet services in the country and the region. The datacentre is to be brought online by the end of 2013, boosting Goog le's capacity in the region. Chile is a good location for Google, partly due to strong demand for broadband and data services in the market, but more importantly to the country ' s stable business and political environment as well as strong infrastructure , which help it stand out in the region.

Google will invest US$150mn in the datacentre, which will employ 20 people and provide additional support for processing searches and ensuring all services are available constantly. Chile is one of the most advanced IT and telecoms markets in Latin America with strong investment from private companies and the government having driven up IT literacy in the country. The ITU's ICT Development Index ranks Chile 55th internationally, just behind Uruguay, which is the top ranked Latin American country.

Chile Outperforms Region
Chile And Latin America Risk/Reward Scores, 2012

In BMI's Risk/Reward Ratings, Chile consistently performs above its peer markets. It is the highest ranked Latin American market in our IT ratings, only beaten by developed countries USA and Canada. Although Chile's market size is relatively small in comparison to major markets such as Brazil and Mexico, Chileans are among the most computer literate in Latin America, making it a good location for launching a datacentre. Demand for high-speed data services is also driving the Chilean telecoms market, giving the country one of the highest scores in the region.

However, other factors are likely to have been key to selecting Chile. Access to power and good infrastructure are essential for a datacentre's success and Chile's scores for these industries are comfortably above the regional average. The long-term political and economic outlook for Chile also highlights its strength as a market for investment. Vendors and operators have often looked to the Chilean market as a first point for selling new products and services, with the population open to the latest trends.

A solid business environment score provides a good foundation for investing in Chile. These factors have helped boost Chile's position in the region as a key base for IT companies to expand further into Latin America. BMI expects this will continue even as rival governments offer incentives to encourage greater investment.

This article is tagged to:
Sector: Telecommunications
Geography: Chile, Chile, Chile, Chile

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