Eldorado do Sul, Brazil Pioneers Latin America's First Data Center City with New Legislation

Eldorado do Sul Launches Groundbreaking Data Center Initiative



Eldorado do Sul, a vibrant municipality in the state of Rio Grande do Sul, Brazil, is making waves in the tech landscape with the approval of groundbreaking legislation enabling the creation of Latin America's first data center city, Scala AI City. Signed into law by Mayor Ernani de Freitas Gonçalves, this initiative represents a pivotal moment for both the city and the wider region.

A Vision for the Future


The introduction of Municipal Law 5.949/2024 marks a significant step toward transforming Eldorado do Sul into a global data and innovation hub. The law expands the urban perimeter to designate an area for Scala AI City while cutting through bureaucratic red tape that typically hinders business development in such sectors. This strategic initiative is backed by Scala Data Centers, a leading player in sustainable hyperscale data centers across Latin America.

Mayor Gonçalves spoke at the signing ceremony, emphasizing the immense potential this project holds for elevating Eldorado do Sul on the global map of technological innovation. According to him, “This project puts our city on the global map of technological innovation while creating real opportunities for our community.”

Economic Recovery and Job Creation


The Scala AI City project is not only a visionary investment in the technology sector; it also initiates a serious economic recovery effort in the wake of devastating floods that struck the region. With an initial funding commitment of $500 million, the project anticipates generating over 3,000 direct and indirect jobs in its first phase.

Vice Governor Gabriel Souza highlighted that this law signals a new era for the socioeconomic development of the region, especially as the community works to rebuild after previous hardships.

Sustainable and Inclusive Practices


Scala Data Centers is committed to heap sustainable practices into the core of the Scala AI City. The company is focused on not only technological advancement but also on positively impacting local communities. The project will run entirely on certified renewable energy and includes initiatives to develop local talent and create educational partnerships.

As a demonstration of its commitment to community development, Scala Data Centers also announced the donation of 110 computers to all 13 public educational institutions in Eldorado do Sul. Christiana Weisshuhn, the Vice President for Marketing and Sustainability at Scala, mentioned that this effort aims to modernize educational resources, thus enhancing student learning and engagement.

Transformational Infrastructure


Scala AI City is envisioned as a strategic hub aimed at meeting soaring demands for data processing and AI workloads from global enterprises. Designed with a 54 MW IT capacity in its initial phase, it has the potential to expand up to 4.75 GW (4,750 MW), boasting an impressive area that can practically fit around 6,500 football fields.

The project significantly positions Brazil as an attractive locale for hosting international AI workloads, particularly in the wake of growing capacity issues seen in the U.S. The establishment is also strategically located to leverage Brazil’s clean energy resources and low-latency infrastructure, ensuring efficient operations while focusing on sustainability.

The Road Ahead


The approval of the new law allows Scala to move onto subsequent phases, including obtaining various governmental licenses and authorizations necessary for full-scale operation. This ambitious initiative signifies a collective push from municipal authorities to revitalize the region through technological and economic advances.

In conclusion, Scala AI City is a transformative project not just for Eldorado do Sul, but for the entire region of Rio Grande do Sul and Latin America as a whole. By integrating cutting-edge technology with sustainable practices and robust community engagement, Eldorado do Sul is set to redefine its future and emerge as a key player on the international digital stage.

For further updates on Scala AI City and its developments, watch this space as excellence unfolds in Latin America's digital frontier.

Topics Consumer Technology)

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