Why is Google Investing Over $850 Million in Uruguay? Insights into Their Second Data Center in Latin America

The technology giant Alphabet which owns Google is expanding its footprint in Latin America after revealing that it intends to open a second data center there. This new plant shall be in Canelones city in Uruguay, an investment of more than 850 million. This massive growth reflects Google’s seriousness in deepening the firm’s base in Latin America; a market with a rapidly rising need for tech solutions.

The following research brief focuses on the global expansion context of the data center strategy of Google in the Latin American region.

Google’s venture into Latin America’s data center market began in 2015 with the firm’s first data center located in Quilicura near Santiago in Chile. The Chilean facility that was established in the beginning with $150 million demanded additional investment in 2018 of $140 million. This expansion also allowed Google to improve its service delivery to the region and meet the rising demand for effective data management and cloud solutions.

This center located in Canelones is likely to help bring up the professional and technological categories for the Uruguay nation. Google likewise showed encouragement in the project when they said “We are working to bring our new data center in Canelones to life, we hope to be a contribution to the professionals and technological developmental for Uruguay and all the region.

Google’s data center developments across the world

Google’s plan to expand its data center isn’t only in Latin America. The company had also looked for other regions to expand its infrastructure as well. Per a report from Reuters, Google is now presumably planning to build a ‘hyperscale’ data center in Vietnam with the expectation of its completion by 2027 near Ho Chi Minh City.

Apart from its investments in Latin America and Vietnam, Google has established more investments in data centers all over the world. Last month, the company revealed plans for a $3bn investment to build a data center campus in Indiana while increasing the scope of others in Virginia. Later in May, Google declared its interest in investing $2bn in the first data center and Google Cloud region in Malaysia. 

What Does This Mean for Uruguay and Latin America?

Google’s investment is more than just a capital invested into Uruguay – it is a way to help improve the彦digital landscape of Latin America. The new data center is expected to generate new employment-related opportunities and promote technology development in the area. For Uruguay, this development makes the country to become one of the most advancing digital economies to attract more tech investments in the future.

In Summary:

Google has provided an example of deepening the company’s focus on the Latin American market, the company invests more than 850 million dollars in a second data center in the region. The continuous expansion of Google services in its array of countries deeply expands its network as it also improves the technological development of places such as Uruguay. More such investments have however been realized to be essential in addressing the future economy that is enhanced by the digital economy.