Introduction

Chile’s strong economic growth during the 1990s and early 2000s is widely recognised as a defining period of prosperity. However, this momentum slowed markedly after 2010 and deteriorated further amid attempts to advance projects for a new Constitution. Nonetheless, over the past decade and despite the latter, Chile has embarked on an ambitious journey to modernise its legal, regulatory and technological frameworks, positioning itself as a regional leader in digital transformation. What began as fragmented and delayed regulatory initiatives have evolved into a comprehensive ecosystem that integrates data protection, cybersecurity, fintech regulation, artificial intelligence and digital infrastructure.

This transformation has been driven by a combination of collaboration from both the public and private sectors, foreign investment, and state-led initiatives, all of which have reshaped the country’s institutional landscape and created new opportunities for innovation and growth, witnessing the country’s significant progress within what is considered its technology-related ecosystem. All of this has fostered interest and appetite for corporate acquisitions in Chile.

As will be shown, the technology-related ecosystem in Chile has experienced exponential growth in recent years, not only in terms of investment in infrastructure but also, and very particularly, at a legal and regulatory level. The introduction of new regulators in data protection and cybersecurity, in addition to the already existing sophisticated regulators in the financial sector with highly specialised departments dedicated to technology-related matters, together with the presence of experts in cybercrime and a new catalogue of criminal offences, have dramatically increased the complexity of the environment in which tech-related M&A operations in Chile take place. In Latin America, and particularly in Chile, the M&A market shows signs of resilience. Although the operation volume has been irregular in 2025, sectors like technology take the lead when it comes to deals. Chile stands out due to its institutional stability and regulatory advances, which will be discussed, and its influence in deal structuring. In this new cycle, M&A operations seek not only growth but also adaptability, efficiency and sustainability.

For these reasons, tech companies operating in Chile now face a more demanding environment, with heightened compliance obligations and increased exposure to regulatory and even criminal liability. Against this backdrop, Chile stands at the forefront of Latin America’s digital future, consolidating its role as a hub for technological development and investments. The evident improvement in infrastructure, the establishment of state policies in tech-related matters, and the existence of adequate regulatory standards make the acquisition of tech-related companies significantly more attractive. Its serious approach, security and high industry development make Chile a highly attractive destination.

Chile’s Path Towards Modern Legal and Regulatory Standards

Chile has a strong system of regulatory entities covering different markets. However, until recently, the enormous advance of technology did not align with the legal regulation already in place in those other industries. For instance, in relation to data regulation, for several years Chile delayed the process of implementing a law concerning the protection of personal data, given that there was not even a basic structure to safeguard or regulate the use of data, let alone enforce requirements regarding personal data.

Protection of personal data

Indeed, various developments have begun to take place in Chile over the last few years. An analysis by the Chilean Congress in the field of data protection revealed that, in relation to Law No 19,628 on the Protection of Private Life of 1999, a total of 67 bills concerning personal data and privacy had been introduced. In 2015, the Organization for Economic Co-operation and Development (OECD) warned that only Chile and Turkey had not updated their legislation in this field: Turkey resolved this with the enactment of a new law in March 2016. Thus, in March 2017 – under pressure from both civil society and academia – the Chilean government introduced a bill entitled “Regulates the protection and processing of personal data and creates the Personal Data Protection Agency (Agencia Nacional de Protección de Datos)”. However, the bill remained dormant for many years until, finally, at the end of 2024, its legislative process concluded, establishing its deferred entry into force at the end of 2026. The body of the law is mainly inspired by the European Union’s General Data Protection Regulation.

Given the various efforts required for practical implementation of the law, specialist circles, particularly those linked to the technological sphere, have paid close attention. The new Law No 21,719 on the Protection of Personal Data establishes a comprehensive regulatory framework to guarantee the right to privacy, but above all makes a significant effort to adapt it to the challenges that digital environments bring. This framework incorporates an approach centred on the following:

• protection of the fundamental rights of data subjects;
• addressing diverse aspects related to the processing of personal data;
• specific regulations for special categories;
• administrative procedures; and
• the creation of a supervisory and regulatory authority (mentioned above).

Fintech

In 2023, Chile developed specific regulation through Law No 21,521, for companies developing innovative technologies to deliver and improve financial services (fintech). The main pillars of this law are as follows:

• it establishes a regulatory framework for certain technology-based financial services, such as crowdfunding or collective financing platforms, and alternative transaction systems;
• it subjects those entities engaged in intermediation and custody operations, provision of transaction platforms, and advisory services on financial instruments, including crypto-assets, derivatives and contracts for difference, to the supervision and regulation of the Financial Market Commission (CMF);
• it creates an Open Finance System, commonly referred to as “Open Banking”, allowing financial service providers to exchange financial information, thereby overcoming the current information asymmetry faced by new entrants;
• it permits the use of crypto-assets as means of payment whose value is determinable and backed by money, provided they meet the requirements established by the Central Bank of Chile; and
• it amends various laws governing traditional financial institutions in order to achieve regulatory symmetry in the provision of similar financial services, reducing entry barriers for fintech companies.

The CMF issued new regulations between 2024 and 2025 governing the various activities classified under the Fintech Law, which will come into force in 2026.

Criminal law

In parallel, from a criminal law perspective, Chile also focused on establishing regulation in line with technological advances, expanding the catalogue of criminal offences and setting significant penalties commensurate with the relevance of this matter to the current scenario. From a criminal law standpoint, Chile until recently had very limited regulation regarding offences related to computer or technology-related crimes. This changed with the enactment in 2022 of Law No 21,459 on Cybercrime, which aligned Chilean legislation with the Council of Europe’s Convention on Cybercrime (Budapest Convention), and subsequently with the entry into force of Law No 25,595 on Economic Crimes, enacted in August 2023 and fully effective as of September 2024.

This law systematised economic crimes, while also introducing amendments to the criminal liability of entities, under which companies in Chile today may be significantly impacted, as they are susceptible to criminal liability and even face the penalty of dissolution of their juridical person, prohibition against contracting with the government, or the application of significant fines. Penalties such as these are aside from the individual penalties for natural persons involved in such crimes: high-ranking company members, management or directors who have failed in their diligence duties to the company by allowing such criminal behaviours, which the law considers an aggravating circumstance, could even face prison sentences.

Chile currently has broad regulation and a wide spectrum of offences in this area, including:

• system interference;
• data interference;
• illegal access;
• illegal interception;
• computer-related forgery;
• receiving stolen computer data;
• computer fraud; and
• misuse of devices.

In parallel, to address these new forms of crime, in 2022 the Investigation Police created the National Cybercrime Headquarters, as well as the Digital Forensics Department.

From an M&A perspective, considering all these new forms of crime, the due diligence phase should now involve a more exhaustive revision of topics such as:

• the security measures in place;
• the data map inside the company;
• who has access to such information;
• confidentiality levels of the employees and advisers within the organisation; and
• understanding the key technology activities within the company and how they are protected.

That said, it would at least be necessary to review the policies, their scope and effectiveness, especially those relating to data protection and information security, interacting with the data and security officers, and checking all applicable regulations or standards.

Cybersecurity

In April 2024, Law No 21,663 on the Cybersecurity Framework was enacted, following approximately two years of debate in Congress. This law introduces a new legal framework aimed at strengthening cybersecurity in Chile, and establishes new institutions, principles and general regulations to co-ordinate cybersecurity actions by state bodies and certain private institutions. The emphasis is on the prevention, containment, resolution and response to cybersecurity incidents, setting minimum requirements and defining the corresponding powers and obligations. The law creates new institutions, including the Chilean National Cybersecurity Agency (Agencia Nacional de Ciberseguridad, ANCI), and other multisectoral councils or committees and Incident Response Teams. The ANCI will have various powers, including regulatory, supervisory and sanctioning powers.

This law will apply to institutions classified as providers of essential services (PSE), as well as those classified as operators of vital importance (OVI). The list of entities considered to be PSEs includes, for example, those provided by state administration bodies, those granted under public concession, and those provided by private institutions. The list covers activities essential to the functioning of the country, such as:

• electricity generation, transmission or distribution;
• transport, storage or distribution of fuels;
• drinking water supply or sanitation;
• telecommunications; and
• banking, financial services and payment systems.

In relation to the technology sector, services related to digital infrastructure, digital services and third-party managed information technology were included. As for OVIs, these include services that depend on networks and computer systems, and whose disruption, interception, interruption or destruction would have a significant impact on public security and order, the continuous and regular provision of essential services, the effective fulfilment of state functions, or, in general, the services that the state must provide or guarantee.

In July 2025, the registration process for PSEs was completed, and the ANCI is currently reviewing market observations regarding the first list of entities preliminarily classified as OVIs. The process of nominating PSEs and OVIs has not been free from controversy, raising considerable uncertainty in the market, particularly within the technology sector, given that concepts such as “digital services and third-party managed information technology services” are very broad. This has generated significant confusion for tech companies, as it may encompass both major industry players and small enterprises.

Following the PSE registration process, with public consultation carried out by the ANCI, a preliminary list of OVIs was published, which also caused difficulties. Some entities were nominated as OVIs, opening an observation process for nominees, with entities striving to be given only the qualification of PSE and thus face less stringent regulation. According to an Executive Summary published by the ANCI, the public consultation process showed differing opinions, both positive and not, and questions from those nominated with an overall understanding of the matter’s importance, but also the demand for a coherent, proportional and technical implementation. The first definitive list of OVIs will be published in mid-December 2025.

Artificial intelligence

In line with the National Artificial Intelligence Policy (Política Nacional de Inteligencia Artificial) (2021), the Lower Chamber of Congress passed (in August 2025) a bill regulating AI systems, submitted by the government (in May 2024). At the time of publication of this guide (11 December 2025), the bill is in its second constitutional stage, before the Senate. If enacted, Chile will become the first country in the region to have specific legislation in this field. The bill seeks to:

• ensure the development and usage of these technologies, respecting the fundamental rights of individuals;
• protect citizens from risks;
• promote innovation; and
• provide certainty for AI developers and users.

The bill establishes that the Personal Data Protection Agency will be responsible for overseeing compliance, particularly in cases where individuals’ rights may be affected.

The current landscape

Overall, as a result of the series of changes (that are still undergoing), the current landscape for companies has become significantly more challenging, raising the standard of information security in recent years. Companies may now even be held criminally liable for these matters, in addition to facing much more exhaustive regulation and new obligations (such as having dedicated areas responsible for cybersecurity within companies and promptly reporting any cybersecurity threats in their systems to the authorities), aside from the need to incorporate a team of specialists in the field to fulfil these new obligations.

Thus, Chile is currently undergoing a complete paradigm shift and the establishment of a new culture, increasingly demanding and sophisticated. This has been reflected not only at a legal level, through the series of amendments already mentioned, but also in the substantial improvement of the country’s infrastructure, accompanied by major announcements from leading technology firms, as well as projects being developed by the state, all of which have paved the way for more significant M&A procedures.

Chile’s Path to Modernisation: Infrastructure Investment Trends

For years, Chile has been working on the establishment of a whole digital transformation agenda, taking various steps in its commitment to the development of an internal digital transformation by signing a series of agreements, alliances and policies that have systemically incorporated technological platforms to public services and allowed their incorporation to other entities. Following the enactment of Law No 21,180 on the Digital Transformation of the State in 2019, the investment of the Chilean government in the digital transformation of the public sector and its modernisation to improve the efficiency of internal operations and the delivery of public services has been assessed by the OECD, giving the country policy recommendations to strengthen the management of digital investments, in line with the three pillars of the OECD Digital Government Investments Framework. The Inter-American Development Bank has also participated in various projects supporting public-sector modernisation, digital transformation and Chile’s new data strategy.

In such context, Chile’s digital infrastructure is advancing rapidly: investment in data centres, the expansion of fibre optics and 5G, submarine cables and satellite connectivity are shaping the country’s new technological ecosystem.

In mid-2025, the Chilean government signed an agreement with Google to install the first fibre-optic cable between South America and Oceania, the Humboldt Cable System. This will allow Chile to serve as the gateway for data from the Pacific Ocean to the Americas, positioning the country as the region’s digital activity hub.

Chile is steadily advancing towards becoming a digital infrastructure leader in Latin America. The launch of the National Data Centre Plan marks a pivotal milestone in positioning the country as a global player in the data centre industry, providing regulatory clarity and fostering public–private collaboration to expand the sector while upholding high environmental standards.

The Plan is structured around three core objectives:

• stimulate industry growth by improving investment conditions through regulatory certainty and streamlined processes;
• develop a decentralised and sustainable data centre sector powered by renewable energy, thereby reducing environmental impact; and
• promote research and development (R&D) to drive innovation in data technologies.

With more than 30 new projects already underway, valued at USD4.2 billion, the Plan is expected to accelerate investment and encourage decentralisation, creating opportunities in both northern and southern regions of Chile.

In early September 2025, the government of Chile also announced a major investment in High Performance Computing (HPC), funding two projects that will enable the country to develop its own artificial intelligence solutions through the creation of two supercomputing centres specialised in AI, driven by Corfo and the Ministry of Science, Technology, Knowledge and Innovation. In Chile, HPC supercomputers have traditionally been hosted by universities for training models. With this investment, Chile will build the enabling capacities to process and analyse vast volumes of data, developing innovative solutions for sectors such as mining, agriculture, energy, manufacturing and services. Importantly, this infrastructure is not intended solely for academic research, but also for private entities to leverage in developing their own business ideas. With this, Chile would become the second country in Latin America in terms of computing power.

The government of Chile has also taken care to conclude agreements with other countries to jointly develop areas related, for example, to artificial intelligence. Chile and France have also signed a technology-related agreement: the creation of the Chile–France Binational AI Centre, formalised during President Emmanuel Macron’s visit to Chile in November 2024.

Alongside these public initiatives, the private sector has also made significant investments in Chile’s digital infrastructure. Notably, in July 2025 Microsoft inaugurated its first data centre region in Chile. Operating at hyperscale, this region connects Chile to Microsoft’s robust global infrastructure and will also provide services to other South American countries. According to the company, this new region is expected to generate USD35.3 billion in net new revenues over the next four years from Microsoft, its partners and customers using cloud services. Of this total, approximately USD3.3 billion will be invested directly in Chile, contributing to local economic development and the estimated creation of 81,041 jobs between 2025 and 2029.

Chile has reaffirmed its position as a regional benchmark in innovation, topping the Latin America and Caribbean ranking in the Global Innovation Index (GII) 2025. Globally, the country ranked 51st among 139 economies, consolidating its status as the region’s leading nation in innovation. The GII report, prepared by WIPO, showed Chile outperforming the regional average across all pillars of the index, with particular strength in Market Sophistication, Infrastructure and Institutions, where it ranked among the global top 50.

Beyond natural resources, Chile is building a growing technological ecosystem, with incentives for start-ups, incubators and venture capital funds. Sectors such as fintech, mining software, logistics and agrotech present diversified investment opportunities, reducing dependence on commodities. Investments in infrastructure and technology projects have risen significantly, with initiatives aimed at modernising national infrastructure and driving digital transformation. This surge presents major opportunities for the entrepreneurial ecosystem.

Finally, when it comes to recent tech-related M&A deals in Chile, in general terms, 2025 has been a decent year, with a total of 289 transactions for an added value of USD6.010 billion; the specialised software sector was the most outstanding of the year, with 31 deals, and the internet, software and services sector took second place with 28 deals. Regarding the cross-border market (to date of publication of the guide), Chilean businesses have bet on investing mainly in Mexico and Peru, with seven and six transactions, respectively. The USA, Brazil and the UK are the lead countries taking bets on Chile for acquisitions, with 25, 12 and ten transactions from each country, respectively.

Deals such as these make the software industry one of the busiest industry sectors of the year and Chile a great spot to invest in tech-related businesses. Alongside mining and energy, investment in large-scale projects in these three sectors in Chile reached a record high in 2025.

Final Remarks on the Transformation of Chile’s Digital Landscape

Therefore, from a tech-related perspective, the scenario in Chile on a legal and regulatory level has shifted drastically. Chile is undergoing a profound transformation in its legal, regulatory and technological landscape. Over the past decade, the country has moved from a fragmented framework to a comprehensive ecosystem that integrates data protection, cybersecurity, fintech regulation, artificial intelligence and digital infrastructure. This evolution has been driven by a combination of public–private collaboration, foreign investment and ambitious state-led initiatives.

All the above-mentioned has contributed to a new, more complex and sophisticated scenario for companies in Chile, whether particularly directly related to technology or not. As of today, companies must necessarily incorporate from legal and contractual perspectives a considerable set of new rules that they did not have in sight until recently. Consequently, M&A processes have become considerably more complex, given that there is significantly more regulation applicable to the normal day-to-day functioning of these businesses.

At the same time, major investments in data centres, fibre optics, 5G, submarine cables and high-performance computing have positioned Chile as a regional hub for digital innovation. These developments have not only strengthened the country’s institutional framework but also enhanced its attractiveness for mergers and acquisitions in the technology sector. Chile’s leadership in the Global Innovation Index, its agreements with international partners and the arrival of hyperscale infrastructure providers underscore its growing role as a gateway for digital activity in Latin America.

In this new scenario, companies operating in Chile face a more demanding environment, with heightened responsibilities in information security, compliance and corporate governance. However, this same environment offers unparalleled opportunities for innovation, investment and growth. Chile is thus consolidating its position as a forward-looking nation, where regulation, infrastructure and entrepreneurship converge to shape the future of technology in the region.