AWS sets aside $236m to expand its data centre presence in Brazil

AWS Brazil | Data Economy São Paulo, Brazil

Amazon’s cloud subsidiary AWS is set to splash $236m (R$1bn) on data centres in Brazil over the next couple of years according to the state government.

According to a report by Reuters, the company plans to strengthen its cloud infrastructure in South America by expanding its data centre portfolio as well as its service offerings to its customers in public and private sectors.

Data Economy reached out to AWS for comment, to which a spokesperson commented: “Over the next two years, AWS will invest $1 billion BRL to expand the AWS South America (São Paulo) Region to support increased customer adoption of AWS.”

The company mentioned that it plans to generate more jobs, technology and opportunities for start-ups, in a bid to place the state of São Paulo in the global context.

AWS launched its data centre cloud region in São Paulo, in 2011, revealing that the region has three availability zones.

The company describes its availability zones as one or more discrete data centres with redundant power, networking, and connectivity in an AWS region.


Time is precious, but news has no time. Sign up today to receive daily free updates in your email box from the Data Economy Newsroom.

As well as its São Paulo, Brazil region, the company has edge locations in Rio de Janeiro, Brazil; Bogota, Colombia; Buenos Aires, Argentina; Santiago, Chile.

Back in 2018, it was rumoured that AWS had long been making hints that it would be adding a second region in South America, and the choice seemed to be between Chile and Argentina, according to people familiar with the matter.

Last week, Amazon reported its fourth-quarter and full-year results, with the quarterly growth at AWS slightly lower than previous quarters. AWS is the most profitable part of Amazon’s business.

For the final three months of the year, AWS grew sales 34%, which was down from the 35% seen in Q3, and was also down from the 37% growth in Q2.

AWS’ operating profit in Q4 was up 18%, generating a margin of 26%. This margin compares with the 29.3% seen in the same quarter last year.

Read the latest from the Data Economy Newsroom: