Scala Data Centers’ AI City Secures 5 GW Approval in Brazil
Brazil’s Ministry of Mines and Energy has granted Scala Data Centers authorisation for a 5 GW power connection to the National Interconnected System, marking a pivotal moment for Latin America’s digital infrastructure.
The approval is one of the largest energy authorisations ever issued by the Brazilian Executive Branch and the most significant for a data centre project in the country.
With it, Scala Data Centers cements its leadership position and ensures it can meet the exponential surge in data-processing and artificial intelligence workloads demanded by major global enterprises.
The vision: Latin America’s first gigawatt-scale data centre campus
Announced at Palácio Piratini in Porto Alegre, Scala AI City aims to become the first and only Latin American data-centre campus built for the gigawatt era.
Upon completion, it will provide 4.75 GW of power across a 10 million square metre site, equivalent to 6,500 football fields, supporting massive AI workloads for global enterprises.
By design, the campus is a strategic hub for innovation and sustainability, integrating circular-economy practices, running entirely on certified renewable energy and featuring educational partnerships and local workforce training in Eldorado do Sul.
Phase 1 alone, with an initial IT capacity of 54 MW and a US$500m investment, is set to create more than 3,000 direct and indirect jobs and catalyse growth across energy, construction and telecommunications sectors.
Setting new standards in sustainability and performance
Scala AI City’s infrastructure is engineered to meet the most demanding AI and machine learning workloads. It features racks with capacities exceeding 150kw, far surpassing the standard 20kW racks seen in conventional setups.
The campus will utilise advanced liquid cooling technology, ensuring high energy efficiency and zero water usage in cooling systems. The expected Power Usage Effectiveness (PUE) is an impressive 1.2, projected to be the lowest in Latin America.
Sustainability remains central to the project’s ethos. Scala has secured long-term power-purchase agreements with significant wind and hydro generators and flexible energy-supply partnerships extending through at least 2039. Between 2020 and 2024, clean, I-REC–certified energy has already avoided more than 80,000 tonnes of CO₂ emissions.
Marcos Peigo, CEO and cofounder of Scala Data Centers stated, “Energy planning has evolved from a purely operational concern into a strategic competitive differentiator.
"Our commitment to 100% renewable and certified energy, combined with relentless supply-resilience measures and proactive demand anticipation, guarantees our clients stability, predictability and environmental compliance from day one.”
Strategic connectivity and regional impact
Located in Eldorado do Sul, Scala AI City benefits from the region’s abundant energy resources, safety from natural disasters and scalability for decades of expansion.
The campus will offer direct connectivity to the Malbec submarine cable, providing sub-80 ms latency to North America and positioning Brazil as a global hub for digital infrastructure and AI-driven applications.
The project is expected to drive economic development across multiple sectors. Vice Governor Gabriel Souza highlighted, “This law paves the way for a new era of progress and inclusion for the residents of Eldorado do Sul and Rio Grande do Sul, especially as we rebuild our city after the devastating floods earlier this year”.
Government and industry endorsement
The Government of Rio Grande do Sul has been a strategic partner since the project’s inception, expediting regulatory, energy and land-use approvals.
Governor Eduardo Leite stated: “Rio Grande do Sul is at a historic juncture as home to Latin America’s first data-centre city. Scala AI City will be a powerful engine for our state’s economic and social development.
"It is an honour for our government to partner in this transformation, which positions Rio Grande do Sul as a global leader in the new digital economy”.
Luciano Fialho, Senior Vice President of Corporate Development at Scala, added, “While the sector scrambles for power, leadership demands a long-term vision. We were ready before many even reacted.
"The milestone confirms that Scala AI City is a concrete project, backed by owned land, defined zoning, proven expertise and an officially authorised energy connection. In a dynamic market, transparency, solidity and consistent execution set us apart”.
With the 5 GW energy authorisation, Scala AI City aims to redefine the future of telecommunications and digital infrastructure in Latin America. The project’s scale, sustainability and advanced technology will attract international AI workloads, foster regional economic growth and establish Brazil as a leader in the global digital economy.
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