Industry Findings: Across Latin America buyers are increasingly prioritising regional compute availability and sovereign-support for local data, which reshapes procurement toward platform vendors that can host locally or provide strong legal and technical intermediation. This dynamic is amplified by pan-regional AI initiatives and rising hyperscaler investments, which together increase demand for integrated data platforms, event streaming, and API-first PaaS that reduce cross-border latency and simplify compliance for regulated sectors.
Industry Progression: The region’s most consequential recent supply-side decision was AWS’s $4 billion commitment to build cloud infrastructure in Chile (May-2025), a move that creates a new local region and capacity for generative AI workloads; that investment accelerates the availability of PaaS services hosted in South America and prompts enterprises to plan migrations that avoid cross-border data transfer friction while gaining access to AI-ready managed platforms.
Industry Player Insights: Key companies operating in this regional market include Amazon Web Services, Google Cloud, Microsoft Corporation, and IBM Corporation etc. Hyperscalers’ Latin America expansions (AWS Chile, Google regions, Microsoft Brazil investments) and large enterprise-grade vendors like IBM together widen region-hosted PaaS options; these developments allow fintechs, retailers, and extractive-industry firms to select managed platforms with local SLAs, reducing operational risk and accelerating AI/analytics deployments.