INSUBCONTINENT EXCLUSIVE:
Brazil is experiencing a significant surge in its data center industry
data center energy demand, expected to increase by 16% annually until 2026
The Brazilian market consists of three main operator types.Hyperscale companies like Google, Amazon, and Microsoft run large data centers
for their own needs and cloud services
Wholesale firms provide data center services to major clients while managing the space.The third group includes companies that sell part of
their capacity to various corporate clients
Rio de Janeiro, Fortaleza, and Porto Alegre are also seeing expansion
(Photo Internet reproduction)Brazil currently has about 580 MW installed, with expectations to exceed 2 GW by 2028
challenge, often taking up to 18 months
The average investment per MW of IT power is $10 million.Growth of Data Centers in BrazilData centers for cloud services and AI support have
Pre-pandemic, large data centers ranged from 5 to 10 MW
Since 2022, major installations have increased to 20-50 MW.Scala, a key player in the Brazilian market, focuses on hyperscale clients
The company has 300 MW of contracted capacity in Latin America
In Brazil, Scala operates nine data centers with three more ready to start operations.The potential for AI support is driving further growth
Data centers for algorithm training can exceed 500 MW capacity
Scala recently announced a $526 million investment in a 54 MW data center in Eldorado do Sul.However, Brazil faces competition from other
countries with clean energy matrices
High import taxes on equipment pose a challenge
Robust energy transmission networks and telecommunications infrastructure are also necessary for growth.Despite these challenges, the data
storage and processing sector in Brazil continues to grow rapidly
With proper incentives and reduced bureaucracy, Brazil could become even more attractive for international investments in large-scale
