Amazon is ready to invest $800 million over the next decade for the raising of a new data center in Argentina. The location that has been chosen by the tech giant is Bahia Blanca, and the reason behind this selection is purely the taxation benefits that characterize the particular free-trade zone. This was precisely the goal of the country’s national congress when they passed the incentivizing law a few months ago, and it looks like Amazon is one of the very first “big fishes” to bite the hook.
According to the “Knowledge Economy Law”, Amazon will enjoy an income tax reduction from 35% to 15%, pay lower labor costs, and won’t pay any provincial taxes on energy consumption. This is key for data center operations, as the energy consumption of these giant units is the main operational expense they have to deal with.
The cloud computing sector is on the rise, and Amazon Web Services is one of the big players in this market. As is always the case with markets that undergo rapid growth, the companies that are good at expanding their operations will have an advantage over their competitors. In 2019, the growth of the market was estimated to reach a rate of 17.5%, and the predictions for 2020 are even more promising. This means that cloud service providers will have to build humongous data centers to accommodate the rising demand.
In Ashburn, Virginia, companies have already built a data center district where cloud clusters are hosted. This is indicative of the dawn of a new age, and local authorities identify the opportunity. Argentina is calling data center operators to build there and takes all provisions to enable them to grow as much as they need to in the future. Besides, the Argentinians won’t bother the operators about the looks of their data centers or how much noise their coolers make.