Scala AI City: Brazil's Ministry of Mines and Energy Approves 5 GW Power Connection for Data-Center City in Rio Grande do Sul

With this authorization, Scala Data Centers cements its leadership position—ensuring it can meet the exponential surge in data-processing and artificial-intelligence workloads demanded by major global enterprises.

SÃO PAULO, May 14, 2025 /PRNewswire/ -- Scala Data Centers, the leading Latin American platform for sustainable hyperscale data centers, announced today that Brazil's Ministry of Mines and Energy (MME) has authorized the 5 GW ramp-up connection of Scala AI City to the National Interconnected System (SIN). This marks one of the largest energy authorizations ever granted by the Executive Branch and the most significant approval to date for a data-center project in Brazil.

By securing this connection, Scala reaffirms its ability to scale operations safely, efficiently, and with uncompromising quality. An early-mover in energy planning for artificial-intelligence workloads, the company is positioned to meet the forthcoming surge in demand for high-density computing and uninterrupted power supply. The 5 GW authorization will underpin the growth of Scala AI City for years to come, establishing it as the first, and only, Latin American data-center campus designed to operate at gigawatt scale. Once fully built out, the campus will boast 4.75 GW of capacity, surpassing the entire power consumption of the state of Rio de Janeiro.

"Energy planning has evolved from a purely operational concern into a strategic competitive differentiator. Our commitment to 100 percent 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," said Marcos Peigo, CEO and cofounder of Scala Data Centers.

In addition to long-term power-purchase agreements with major wind and hydro generators, Scala has secured flexible energy-supply partnerships extending through at least 2039. Between 2020 and 2024, the use of clean, I-REC–certified energy avoided more than 80,000 tons of CO₂ emissions.

"While the sector scrambles for power, leadership demands a long-term vision. We were ready before many even reacted. This milestone confirms that Scala AI City is a concrete project, backed by owned land, defined zoning, proven expertise, and now an officially authorized energy connection. In a dynamic market, transparency, solidity, and consistent execution set us apart," said Luciano Fialho, Senior Vice President of Corporate Development at Scala.

Scala maintains an ongoing dialogue with regulators and policymakers to foster a more predictable investment environment for critical infrastructure. The Government of Rio Grande do Sul, led by Governor Eduardo Leite, has been a strategic partner since the project's inception, expediting regulatory, energy, and land-use approvals.

"Rio Grande do Sul is at a historic juncture as home to Latin America's first data-center city. Scala AI City will be a powerful engine for our state's economic and social development. It is an honor for our government to partner in this transformation, which positions Rio Grande do Sul as a global leader in the new digital economy," Governor Eduardo Leite said.

With this approval, Scala is charting the course toward truly sustainable, future-ready digital infrastructure.

About Scala AI City
Announced in September 2024 at Palácio Piratini in Porto Alegre, Scala AI City is the first and only Latin American data-center campus built for the gigawatt era. When complete, it will provide 4.75 GW of power across a 10 million-m² site - equivalent to 6,500 football fields - and support massive AI workloads for global enterprises. The project integrates circular-economy practices, uses 100 percent renewable certified energy, and includes educational partnerships and local workforce training in Eldorado do Sul, solidifying the region as a digital-economy hub. Phase 1, with an initial IT capacity of 54 MW and a BRL 3 billion (USD 500 million) investment, will create over 3,000 direct and indirect jobs and catalyze growth across energy, construction, and telecommunications sectors. Fully built out, total investment could reach BRL 500 billion. Leveraging Brazil's green-energy export potential ("powershoring") and sub-80 ms latency to North America, Scala AI City is positioned to attract international AI workloads at unprecedented scale.

About Scala Data Centers
Scala Data Centers is Latin America's premier sustainable hyperscale data-center platform. Backed by DigitalBridge, the company has invested over BRL 12 billion and manages some 200 MW of installed and in-development capacity, plus a landbank exceeding 12 million m² across four countries. Scala's infrastructure includes more than 7 GW of energy capacity for future expansions, all powered by 100 percent renewable and certified sources.
For more information, visit https://scaladatacenters.com/en/.

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SOURCE SCALA DATA CENTERS