Google has announced the suspension of its plans to build a $200 million data center in Chile, responding to concerns about environmental impact. The U.S. tech giant had initially received permits in 2020 to construct the sizeable project in Santiago, the capital of Chile, to meet the growing demand for server farms worldwide due to the increasing use of cloud-based technologies and generative AI.
Following a Chilean court’s decision to partially reverse the center’s authorization due to worries about water usage, Google disclosed on Tuesday its intention to reassess the project to adhere to stricter environmental standards and modify its water-intensive cooling system. The company emphasized its commitment to sustainability in all its operations, including the design and management of data centers.
Community objections in Chile, a nation facing severe drought, regarding the energy and water consumption of the proposed computer farm led to heightened government scrutiny. A local court temporarily annulled the project’s authorization in February over concerns that the data center could impact Santiago’s main aquifer by drawing on Chile’s water resources for cooling the heavy equipment essential for online data storage.
Google did not provide a revised timeline for the project but stated that the location would remain the same. The company informed Chile’s environmental regulator of its decision to pause the permit application process and reevaluate its approach in light of environmental concerns raised by local residents and Indigenous groups in the drought-affected country.
