COUNTRY FOCUS : BRAZIL
Scala AI City – artists impression
“ Our commitment is to work diligently at the national level to create a favorable regulatory environment for data centers and issues related to AI .
“ This moment is like a wave that gives us a chance to ride , but it is fleeting . If we do not build this favorable environment immediately , we risk seeing the energy transition happen in other countries , leaving us behind . Acting now is crucial to ensure that Brazil doesn ’ t fall behind in this important global transformation ,” Leite added .
For the state ’ s Economic Development Secretary , Ernani Polo , the announcement demonstrates that the technology market in Rio Grande do Sul is attractive and growing . “ We are an innovative state with many technology-oriented initiatives . Scala ’ s investment proves that the state has much to offer the sector , such as proximity to Mercosur countries and a favorable business environment ,” Polo said .
“ We are taking a monumental step toward the digital future of Latin America with the creation of Scala AI City ,” said Marcos Peigo , CEO and Co-founder of Scala Data Centers . “ This project , born from a visionary partnership with the Rio Grande do Sul government , represents an initial investment of US $ 500 million and the construction of what could be the largest and most innovative digital infrastructure project on the continent .
“ We are not only elevating Brazil to a new technological level but also driving the state ’ s economic and social recovery , generating thousands of jobs and promoting the sustainable development of various industries . Scala AI City will be a milestone of innovation , positioning Rio Grande do Sul and Brazil as global leaders in the AI revolution .
“ This is a historic moment that redefines the future of technology and the economy in the region , with the potential to change the future of our country ,” said Peigo .
The construction of Scala AI City will generate more than 3,000 new direct and indirect jobs in the first phase , in addition to boosting a vast ecosystem involving sectors such as energy , civil construction and telecommunications , among others .
Scala is committed to prioritizing local labor and suppliers , promoting the socioeconomic development of the communities surrounding the project and attracting companies from its supply chain to the region .
The initial IT capacity of Scala AI City will be 54MW – which is about 7x more than the capacity currently installed in Greater Porto Alegre and larger than markets such as Argentina and Uruguay .
Additionally , the expansion potential is enormous , with the possibility of reaching 4,750MW spread across more than 1,730 acres , making the new campus a unique opportunity for Brazil to establish itself as a global leader in the information technology landscape .
The project will utilize a Futureproof design , allowing the installation of racks that support AI training workloads , with capacities exceeding 150kW , in contrast to the 20kW or less intended for other uses .
The system also plans to use liquid cooling – offering greater energy efficiency for this type of application .
Sustainability will be a central development pillar , relying on 100 % renewable and certified energy and adopting cutting-edge technologies to minimize its environmental impact . With the aid of the milder climate in southern Brazil , the data centers will be more efficient and achieve a Power Usage Effectiveness ( PUE ) not exceeding 1.2 – the lowest in Latin America – and a Water Usage Effectiveness ( WUE ) of zero , meaning no water will be used in the cooling systems .
The development of Scala AI City is supported by strategic partnerships with global and local stakeholders , ensuring that the project meets the highest international standards . p
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