Contxto – Amazon Web Services (AWS) is raising its stake on cloud computing infrastructure in Latin America. Proof of this is that the IT company will use R$1 billion (around US$235 million) to expand its data center in São Paulo. 

These funds will be disbursed within the next two years.

The announcement was made by the state’s Governor, João Doria, last Wednesday.

Related article: Amazon chooses Argentina to host new data center

Cloud computing power

So what is AWS specifically up to?

These millions will be used for its Data Processing Center located in that part of Brazil. In addition, a portion of these US$235 million will also be used to increase the services it offers to both public and private parties.

The move gives reason to suggest that AWS is upping the ante in the future of startups and tech in the region that rely on cloud services to develop their own products.

It launched its cloud center in Brazil in 2011 but it’ll be getting some beefing up thanks to these funds. 

Moreover, AWS has two Edge networks in São Paulo and two in Rio de Janeiro. As well as one in each of the following cities: Bogotá (Colombia), Buenos Aires (Argentina), and Santiago (Chile).

The objective of all of this is to be the region’s prime provider of cloud infrastructure and beat out its competition—AKA, Google Cloud Platform and Microsoft’s Azure. 

Related article: Google selects Uruguay to host second Latin American data center

“The cloud” hovering above Latin America

As it dawns on everyone that cloud-based services establish the framework for developing a plethora of tech-solutions, the cloud buzz in Latam will continue to grow.

Google currently has two data centers in the region. One in Brazil and the other, announced for Uruguay last November. 

If this were a competition of data centers in Latam, Azure would come in third as it only has one in (surprise, surprise) Brazil.

Setting these companies aside, someone else who might be worried about AWS’ recent plans for Brazil is Argentina. This is so given that just a few months ago, there was an announcement that AWS would open a data center in that country. 

But those plans have yet to materialize. Has the tech giant changed its mind?

Let’s stay tuned to find out.

Wanna hear more? We recommend you listen to the following podcast episode: Netflix, SoftBank y AWS experimentan con Latinoamérica. You can find the time stamp available in the description.

Related articles: Tech and startups in Brazil!