Brazilian data centre operator Scala Data Centers is progressing plans for a large-scale “AI City” near Porto Alegre, with construction of the initial phase expected to commence later this year.
The company, backed by US multinational DigitalBridge Group, is in discussions with technology firms from the US and China to secure a hyperscale tenant for AI infrastructure, including high-performance computing systems, reported Bloomberg.
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Scala was formed in 2020 following DigitalBridge’s acquisition of data centre assets from Brazilian IT firm UOL Diveo.
According to senior vice president Luciano Fialho, who was speaking in an interview with the publication, construction of the first phase is scheduled to begin towards the end of this year.
The initial development is expected to require around $500m in infrastructure investment, while a hyperscale customer would commit significantly higher capital towards computing equipment.
Scala said it has secured approval for a power connection of up to 5GW, a level comparable to the electricity consumption of major cities such as São Paulo and London.
The company added that separate facilities could accommodate US and Chinese cloud providers without compromising data security.
Fialho noted that geopolitical tensions in regions including the Middle East are shaping decisions on infrastructure location, pointing to Brazil’s relative distance from major conflict zones.
Recent drone strikes affecting data centres in countries such as Iran, UAE and Bahrain have led companies to reconsider deployment strategies.
Brazil’s appeal is also linked to its renewable energy resources, extensive fibre-optic connectivity and integrated national grid, which the company said support data centre expansion.
Local and regional authorities are seeking such investments to drive economic activity, contrasting with parts of the US where projects have faced resistance over energy consumption, land use and noise concerns.
Separately, Japanese multinational SoftBank Group has agreed to acquire DigitalBridge for about $3bn as part of its broader push into data centres and AI.
Scala is also expanding its campus in São Paulo, where it has already invested approximately 12bn reais ($2.41bn), with plans to increase capacity to 600MW.
