LatAm List – Seattle-based tech giant Amazon is preparing to invest $800M in a 10-year project in Argentina. The company’s cloud-computing division Amazon Web Services (AWS) plans to build a regional data centre in a free-trade zone in Argentina.
Sales of cloud computing services and software are expected to grow by 17.5% compared to the previous year according to a study by the Gartner research firm.
By locating its data centre in Bahía Blanca and Colonel Rosales in Buenos Aires Province, the company will have considerable tax benefits, such as not paying national or provincial taxes on energy consumption.
The Argentine Congress also recently passed the Knowledge Economy Law, which will greatly benefit companies operating under said law. These companies will be exempt from export tax, as well as receive an income tax reduction from 35% to 15%, and pay lower labor costs.
The Argentine government in turn will be able to diversify its economy into areas like digital services, nanotechnology, and aerospace, among others.
Read more on Buenos Aires Times.