Best Data Center & Digital Infrastructure Lawyers in Chile

About Data Center & Digital Infrastructure Law in Chile

Data center and digital infrastructure law in Chile is a rapidly developing field driven by the country’s ambition to become a regional hub for technology and cloud services. Investments in data centers, connectivity, and digital transformation projects have surged, supported by stable economic conditions and robust legal frameworks. The focus in Chile is on ensuring the legal, regulatory, and technological conditions for secure and efficient operations of data centers, including those providing cloud computing, hosting, and managed IT services. Legal considerations include land use, environmental compliance, data protection, telecommunications, power supply, and cybersecurity.

Why You May Need a Lawyer

The legal landscape around data centers and digital infrastructure is complex, involving multiple overlapping regulations and compliance requirements. You may need a lawyer in situations such as:

• Negotiating contracts for construction, operation, or leasing of data centers.
• Ensuring compliance with data protection laws, such as Law 19,628 on the Protection of Private Life.
• Handling international data transfers in line with local and global standards.
• Navigating environmental impact assessments and construction permits for data center facilities.
• Addressing intellectual property concerns around cloud services and software deployment.
• Managing cybersecurity risks and legal obligations in case of data breaches.
• Dealing with disputes or claims related to digital infrastructure contracts or performance guarantees.
• Assisting foreign companies in investing or establishing operations in Chile.

Local Laws Overview

Several legal domains affect the development and management of data centers and digital infrastructure in Chile:

• Data Protection: Chilean Law 19,628 regulates the collection, processing, and transfer of personal data. Chile is reforming this law to align with international standards such as the GDPR.
• Telecommunications: The General Law of Telecommunications and the Telecommunications Undersecretariat (Subtel) oversee licenses, spectrum, and operational requirements for network and data center operators.
• Environmental Law: Data center projects often require an environmental impact declaration or assessment, particularly when large energy or water resources are involved.
• Civil and Commercial Law: Contracts for services, construction, leasing, and cloud services are governed by the Civil Code and Commercial Code, requiring careful drafting to address liability and service level agreements.
• Labor Law: As with all Chilean businesses, data centers must comply with labor regulations regarding employees, safety, and workplace standards.
• Cybersecurity: Chile has implemented basic cybersecurity legal obligations but is moving toward more comprehensive frameworks to address critical digital infrastructure threats.

Frequently Asked Questions

What are the main regulatory bodies overseeing data centers in Chile?

The main regulators are the Telecommunications Undersecretariat (Subtel) for connectivity, the Environmental Assessment Service (SEA) for environmental matters, and the Council for Transparency for data protection issues.

Is data localization required for Chilean data?

Currently, Chile does not mandate data localization, but personal data processing must comply with local laws and can be subject to sectoral regulations.

What environmental approvals are needed for a new data center?

Large-scale data centers may need an environmental impact declaration or assessment before construction, especially if energy or water use is significant.

How is data privacy regulated?

Personal data is regulated under Law 19,628, which sets rules for data collection, processing, and transfer. Recent reforms aim to strengthen data subject rights and align with international standards.

What legal requirements apply to contracts for cloud services?

Cloud service contracts should clearly specify data security measures, liability, access controls, and compliance with local data protection laws.

What permits are required to build a data center?

Permits for construction, land use, utilities, environmental compliance, and potentially fire safety must be obtained from relevant municipal and national authorities.

Are there foreign investment restrictions in the data center sector?

Chile generally permits foreign investment in data centers, with standard registration and tax requirements, and offers investment protection under various treaties.

What are my obligations if there is a data breach?

While Chile does not yet have strict mandatory notification laws, best practice and certain sector-specific regulations require notification of affected parties and regulators. Proposed reforms may make notifications mandatory.

How do telecommunications laws affect data centers?

Data centers must comply with laws on interconnection, spectrum, and service provision, especially if providing cloud or connectivity services to third parties.

Can a data center provide services internationally from Chile?

Yes, Chile’s open telecommunications market and data protection laws permit the cross-border offering of data center and cloud services, provided all relevant legal requirements are met.

Additional Resources

• Chilean Telecommunications Undersecretariat (Subtel) - telecommunications and data transmission regulations.
• Environmental Assessment Service (Servicio de Evaluación Ambiental, SEA) - guidance on environmental permits and procedures.
• Council for Transparency (Consejo para la Transparencia) - information on transparency and data protection laws.
• Chilean Ministry of Economy, Development, and Tourism - resources for investors and technological projects.
• Chilean Chamber of Information Technologies (ACTI) - industry updates and best practices.
• Legal technology and business associations for sector-specific advice and networking opportunities.

Next Steps

If you need legal assistance with data center or digital infrastructure matters in Chile, consider taking the following steps:

1. Gather all relevant documentation, such as contracts, permits, project plans, and correspondence with authorities.
2. Define the specific legal issue or question to ensure you connect with the right specialist.
3. Seek a lawyer or legal team with expertise in technology, real estate, regulatory compliance, and data protection.
4. Check references and experience, especially with similar data center projects in Chile.
5. Arrange an initial consultation to discuss your needs and receive guidance on local legal requirements and best practices.
6. Continue monitoring regulatory developments and best practices to ensure on-going compliance.

A legal professional can help ensure your data center or digital infrastructure initiative in Chile operates smoothly and complies with all necessary laws and regulations.