Amazon might invest $ 800 million to open a new data center in Argentina

The retailer plans to take benefit from the new Economy of Knowledge law to reduce operational costs

07.Oct.2019 10:14 BRT
UPDATED 13.Feb.2020 19:47 BRT

Amazon plans to invest $ 800 million to build a new data center in Buenos Aires
The recent government incentives were Amazon’s motivation to choose the country
The goal is to increase AWS presence in the Argentinian market

Latin America is definitely Amazon’s new target. After launching Amazon Prime and Alexa in Brazil, raising the bar not only for the retailers but also for the streaming services in the country, now is Argentina that is on the company’s radar.

According to Bloomberg, Amazon plans to invest $ 800 million to build a new data center in Buenos Aires motivated by the recent governmental changes announced. The Argentinian goal is to diversify the economy by encouraging digital and innovative products in the country, that was what caught Amazon’s attention.

The retailer plans to expand the AWS in the country by taking benefit of the Economy of Knowledge law that could provide a reduction between 35% to 15% on income taxes besides fewer labor costs.

READ ALSO: “Why Amazon is continuously expanding in Brazil“

Although it is on advanced stages, for now, the negotiation isn’t closed and the project could have some changes, that’s why Amazon didn’t make any statement about it yet.