Scala Data Centers Targets Tech Giants for AI City Project in Brazil
Scala Data Centers SA plans to launch a $500 million AI City project in Brazil, aiming to attract US and Chinese tech firms. The initiative seeks to leverage Brazil's geopolitical stability and renewable energy resources to position itself as a leader in the AI sector.
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Scala Data Centers SA is set to initiate construction on its AI City project in Porto Alegre by late 2026, with an estimated first phase cost of $500 million. The project aims to attract a hyperscaler from the US or China, which could significantly boost investments in Brazil's technology sector.
Scala has secured a power connection approval of up to 5 gigawatts, equivalent to the energy consumption of major cities like Sao Paulo or London. The Brazilian market is seen as favorable due to its renewable energy abundance and extensive fiber optic infrastructure.
The initiative comes amid increasing global concerns over the security of data centers in conflict-prone regions, positioning Brazil as a safer alternative for tech investment. Local governments are actively pursuing data center investments to enhance economic development.
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