Google to reconsider plans for large data center in Chile due to water concerns

SANTIAGO, Chile (AP) — Google said Tuesday it is halting plans to build a major $200 million data center in Chile over environmental concerns, a decision that reflects growing concerns about the impact of power-guzzling projects around the world.

The U.S. technology company first received permits to build the massive project in Chile's capital, Santiago, in 2020, as demand for the server farms skyrocketed worldwide, fueled by a rise in cloud-based technologies and hype about generative AI.

But months after a Chilean court partially overturned the center's permit over concerns about water use, Google announced Tuesday it would redesign the project to meet stricter environmental regulations and change its water-intensive cooling system.

“A new process will begin from scratch,” Google said in its statement. “Sustainability is at the heart of everything we do, and the way we design and manage our data centers is no exception.”

Complaints from the population of the drought-stricken South American country about the energy and water consumption of the air-conditioned computer farm drew the government's attention and prompted a local court in February to temporarily revoke approval for the project.

The Santiago Environmental Court ordered Google to respond to concerns that the data center could affect Santiago's main aquifers.

The court said it was very likely that cooling the heavy equipment – which creates online storage for millions of people's data – could draw on Chile's water resources. The country is suffering from a crippling drought exacerbated by climate change, sparking outrage among locals and indigenous groups.

Google did not provide an updated timeline for the project, saying the location would remain the same and that developers had already informed Chile's environmental agency of the company's decision to suspend the permitting process and reconsider its strategy.