#Brazil #Scala Data Centers #AI City #Rio Grande do Sul

Scala AI City: A New Era for Data Centers in Brazil

Overview of the Project

On May 14, 2025, Scala Data Centers achieved a significant milestone by securing a 5 GW power connection authorization from Brazil's Ministry of Mines and Energy (MME). This approval places Scala AI City at the forefront of sustainable hyperscale data centers in Latin America, marking a crucial step for the digital economy in the region. The decision to connect Scala AI City to the National Interconnected System (SIN) is one of the largest energy approvals ever granted, showcasing Brazil's commitment to fostering significant advancements in its technological landscape.

Importance of the Energy Authorization

Securing this 5 GW connection is not merely a logistical win; it underscores Scala's strategy of preemptive energy planning to address the surging demands for data processing and artificial intelligence workloads from global enterprises. With an expected total capacity of 4.75 GW upon completion, Scala AI City will become the largest data center in Latin America, surpassing the entire power consumption of Rio de Janeiro.

Quote from Leadership

Marcos Peigo, CEO and cofounder of Scala Data Centers, emphasized the transformative nature of energy planning, stating, "Energy planning has evolved from a purely operational concern into a strategic competitive differentiator... Our commitment to 100 percent renewable and certified energy... guarantees our clients stability, predictability, and environmental compliance from day one."

Strategic Energy Partnerships

Scala has long been ahead of the curve in securing long-term power-purchase agreements with key wind and hydro energy producers. Flexibility is further enhanced through partnerships that extend through 2039. Notably, between 2020 and 2024, Scala’s use of certified clean energy helped avoid more than 80,000 tons of CO₂ emissions, demonstrating their commitment to environmental integrity and sustainability.

Long-term Vision and Market Position

Scala Data Centers recognizes that leadership in this rapidly changing sector demands foresight. Luciano Fialho, Senior VP of Corporate Development, reflected on the company's proactive approach: "While the sector scrambles for power, leadership demands a long-term vision... In a dynamic market, transparency, solidity, and consistent execution set us apart."

Collaboration with Local Government

The Government of Rio Grande do Sul has been instrumental in facilitating this project from its design phase. Governor Eduardo Leite reaffirmed the commitment of the state by stating that Scala AI City represents a unique opportunity to position Rio Grande do Sul as a significant hub in the global digital economy, thus ensuring historical economic and social developments.

The Future of Digital Infrastructure in Latin America

Scala AI City is set to be a foundational component of the digital economy in Latin America. As the first data center campus designed specifically for gigawatt-scale operations, Scala AI City extends beyond mere energy consumption, integrating circular-economy practices and 100 percent renewable energy initiatives. With educational partnerships in place and workforce development initiatives underway in Eldorado do Sul, this project aims to fuel the region’s growth across multiple sectors, including energy, construction, and telecommunications.

Economic Impact and Job Creation

The initial phase of the Scala AI City involves a significant investment of BRL 3 billion (approximately USD 500 million), expected to create over 3,000 direct and indirect jobs. Once fully realized, total investments could reach an impressive BRL 500 billion, emphasizing the project's extensive economic reach and its potential to attract international AI workloads.

Conclusion

With the MME's recent approval, Scala Data Centers not only cements its position as a leader in sustainable energy solutions but also paves the way for a robust digital infrastructure future. Scala AI City is more than a data center; it represents a transformative step in aligning Brazil’s technological capabilities with global standards, ensuring that the country is well-equipped to handle the demands of tomorrow’s digital landscape.