On Tuesday, Google revealed it will put on hold its plans to construct a $200 million data center in Chile in response to environmental concerns. This move underscores rising global anxiety about the environmental effects of energy-intensive projects.
The U.S. tech giant had initially received permits in 2020 to build the extensive facility in Santiago, Chile, amid rising global demand for server farms driven by the growth in cloud technologies and generative AI.
However, after a Chilean court partially reversed the center’s authorization due to water usage issues, Google revealed it would reassess the project to meet stricter environmental standards and modify its water-intensive cooling system.
Google stated, “We will begin the process anew. Sustainability is fundamental to our operations, and this applies to the design and management of our data centers as well.”
Local community concerns in drought-affected Chile about the data center’s energy and water use intensified government scrutiny, leading to a temporary revocation of the project’s authorization in February.
The Santiago environmental court requested Google to address worries that the data center might impact Santiago’s primary aquifer. The court noted that cooling the data center’s heavy equipment could strain Chile’s already limited water resources, exacerbated by severe drought and climate change, which has stirred local and Indigenous opposition.
Google did not provide a revised timeline for the project but confirmed that it will retain the original location. The company has alerted Chile’s environmental regulator that it is suspending the permit application process and rethinking its strategy.