Photo: CFP

By Brasil 247 - Brazil is preparing for one of the largest waves of digital-infrastructure investment in its recent history, with projections that spending on data centers may exceed R$ 60 billion over the next four years. The information was reported by Valor Econômico, which also notes that in more optimistic scenarios the total could reach R$ 100 billion.

According to Valor Econômico, the surge is being driven by advances in artificial intelligence, the migration of services to the cloud, and the rising need for data storage. Specialists interviewed by the newspaper say Brazil has become a strategic destination for major global operators, with projects planned through the end of the decade totaling around 2 gigawatts of capacity — although part of that figure may not materialize.

Analysts cited by the newspaper estimate that each gigawatt of capacity requires between $ 10 billion and $ 12 billion in investment. Today, Brazil's installed data-center infrastructure is around 800 megawatts, well below projected demand as the economy undergoes rapid digitalization.

The country recently saw the announcement of its first large-scale hyperscale project — facilities of at least 200 MW — launched by Tecto, a unit of V.Tal. Until now, most Brazilian data centers ranged between 20 MW and 30 MW.

Energy consumption remains one of the key challenges. Data centers already account for 2 percent of global electricity use. Still, Brazil's predominantly clean energy matrix boosts investor interest and may help absorb excess daytime solar and wind output. In an article referenced by Valor Econômico, PUC-SP professor and AI researcher Dora Kaufman argued that the Brazilian government should demand environmental commitments in exchange for incentives, prioritizing renewable energy sources.

Global players expanding in Brazil include Ascenty (Brookfield), Digital Realty and Scala, controlled by the US fund DigitalBridge. According to Valor Econômico, Scala had hired Deutsche Bank to assess a possible sale, but the process was suspended after offers came in below expectations.

A study by Oliver Wyman indicates that global data-center capacity is expected to double by 2029, driven by AI and cloud-service expansion. Currently, cloud computing accounts for about 30 percent of global capacity and could reach half in the coming years.

The Brazilian government has been working to unlock investments and, in September, issued the Redata provisional measure, which creates a specific tax regime for data centers, including fiscal exemptions. Despite strong availability of renewable energy, high electricity prices still undermine competitiveness compared to other markets.

João Auler, head of infrastructure at UBS BB, told Valor Econômico: "I would not be surprised to hear over the next three to six months about contracts ranging from 300 to 500 megawatts being negotiated."

Daniel O'Czerny, infrastructure-finance director for Citi in Latin America, noted the rapid scaling of projects: "Projects that used to have 200 megawatts abroad are now reaching 3 gigawatts." He added that Latin America is likely to follow the same trend and that Brazil will remain focused on cloud demand.

Roderick Greenless, global head of investment banking at Itaú BBA, also pointed to strong investor appetite: "They are looking at opportunities."

Oliver Wyman consultant Vinicius Miloco highlighted both the momentum and the structural barriers: "This is one of the hottest markets in terms of investment interest in recent times." He also noted interest from foreign operators in purchasing existing facilities to accelerate entry into the Brazilian market, despite higher costs due to valuations exceeding 20 times Ebitda.

(Reported by Brasil 247 on November 18, 2025)