World’s largest retailer Amazon is planning to expand its international infrastructure to include a regional data center in Argentina, which will expand the Amazon Web Services (AWS) through cloud services. Amazon is going to invest nearly $800 million for this project for more than 10 years in the Bahia Blanca-Coronel Rosales districts of the province of Buenos Aires, which is also a free-trade zone, meaning the data center will not pay national or provincial taxes on energy consumption and AWS a subsidiary of Amazon will provide cloud computing services.
If the project was successful this will be a welcome relief for the Argentine government as it attempts to boosts up the country’s economy and also diversify the economy into digital services, nanotechnology, aerospace and many more, which has been in crisis since May 2018. As it is placed in free trade zone Amazon is likely to benefit from this project as there will be an income reduction from 35% to 15% and also there will be pay lower labor costs.
However through a spokeswoman , Amazon has declined to comment on the Argentina project but they said the talks are initial stage once it was finalized they will provide the necessary statement.
The company’s most profitable business AWS has been expanding its infrastructure round the world and giving a tough competition to Microsoft . AWS which was introduced in 2003 has a revenue of is home to several online outfits, including its $25.6 billion in 2018. e-commerce retailer MercadoLibre Inc., which is the leading and largest company in Argentina uses AWS to host its platforms.
Argentina’s economy is particularly vulnerable due to the upcoming general elections this October, and also the investment of Amazon also depends upon this election results. So hope that this project will be a huge successful for both of them . Watch this space for further updates after the elections.