Google pauses $200 million data center in Chile over water concerns

Google has decided to pause its plans for a $200 million data center in Santiago, Chile, due to environmental concerns, particularly regarding water usage. The company had initially received permits for the project in 2020, driven by the increasing demand for cloud services and AI technologies. However, a Chilean court recently reversed part of the project’s authorization, citing worries that the data center's cooling systems could deplete local water resources, especially in a country facing severe drought exacerbated by climate change. The local community, along with Indigenous groups, raised alarms about the potential impact of the data center on Santiago's main aquifer. This led to heightened scrutiny from the government and a temporary revocation of the project’s authorization in February. In response to these grievances, Google announced its intention to redesign the project to meet stricter environmental standards and to modify its water-intensive cooling system. The company emphasized its commitment to sustainability, stating that the new process will start from scratch to ensure compliance with environmental requirements. Although Google has not provided a revised timeline for the project, it confirmed that the location will remain unchanged. This decision reflects a broader trend among tech companies to reassess their infrastructure projects in light of environmental impacts, particularly in regions suffering from water scarcity. As the situation develops, it remains to be seen how Google will adapt its plans to balance technological growth with environmental responsibility.