A combination of things.
Probably the biggest is that chilli was used as a preservative/disinfectant for food before refrigeration. Warmer places have more need for that, because bacteria grows better in warmer temperatures. Thus, they use more chilli.
Additionally, chillis grow more easily in warmer climates. Chillis are native to central America. From there they spread around the world, but obviously became more integral to cuisine in places that can easily grow them. If you’re a colder country, growing chillis is much more effort and so you’re probably not going to make them central to your cuisine.
That being said, there are northern European countries that have developed quite a taste for spiciness. Brits for example generally love spicy food.
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