Data centers, the next investment boom in Uruguay?

Data centers, the next investment boom in Uruguay?

Different companies are analyzing investing in the country on data center projects, following the initiative of Google.

Uruguay expect, in the short term, a investment wave for data center projects —also known as data centers— before the evaluation of different companies that see an opportunity in the country to launch new initiatives of this type.

Google It is not the only company that sees Uruguay as the setting for its data center. It is that, despite being a small market, the promotion of new technologies promoted by the government —seeking to position the territory as a global innovation hub— is the perfect addition to a solid energy infrastructure, the presence of submarine cables new and a perfect pro-business environment to invest.

“Now we are seeing some things in Uruguay. We have already been listening and working on some initiatives”, advanced, in this sense, the vice president of vertiv —a major supplier of data center equipment— to Latin America, Rafael Garrido, to BNamericas.

Already in March, Layer 9 Data Centers was also surveying land in Uruguay to make its first investment in South America. DigitalBridge, controller of digital infrastructure and telecommunications firms Scala Data Centers, Highline, World and Andean Telecom Partners, focused on Latin America, also targeted the country.

Therefore, it would not be surprising if different initiatives of this category begin to move in the country in the coming months, promoting a new investment and technology sector in which powers such as Google, Microsoft and Huawei, with the reinforcement of its data transport systems in Uruguay.

the google project

In 2021, Google acquired 30 hectares for a data center in a technology park in the department of Cannelloni. After several ideas and twists —it transcended from the Ministry of Environment that the project was withdrawn from the country—, the Minister of Industry, Energy and Mining (MIEM), Omar Paganiniassured that the project “is under reformulation” and clarified that the situation occurs “for internal reasons” linked to the cost structure, thus ruling out that these are issues related to the water crisis that mainly affects the metropolitan area.

The head of MIEM indicated that the company “will come to Uruguay”, but that the original idea “is being reformulated due to the cost structure of the project and not for reasons related to water”, referring to the water deficit that the country is going through. For Paganini, The change has to do with “the situations of the company at a global level” and he anticipated that the new initiative on which the company is working will allow, among other things, “a lower cost electrical connection for them and that consumes less water.”

Source: Ambito

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