José Mendieta, Energy Director, Elea Data Centers, says Brazil’ s energy challenges highlight the need for better grid coordination – not blame on data centres. ebates about data centers in

Brazil often begin with a familiar assumption: that the sector is putting pressure on the power system and competing with the public for energy. But that framing is too narrow and it doesn’ t reflect the broader reality of how the grid is evolving.

Brazil isn’ t facing a simple shortage of generation. It has a largely renewable electricity mix and more installed capacity than many markets. In 2024, 88.2 % of the country’ s electricity came from renewable sources and that share has remained above 70 % since 2004. By comparison, renewables account for about 41 % of global electricity generation. Brazil’ s advantage is clear. The issue is that strong generation does not automatically translate into efficient delivery or use.

The real challenge today isn’ t demand alone. Instead, it’ s the growing difficulty of balancing generation, transmission, storage and consumption in real time as the grid becomes more complex. The challenge is increasingly relevant in any market trying to align renewable growth with transmission capacity, grid reliability and large new sources of demand.

A system under strain for reasons beyond demand

Brazil’ s energy debate often overlooks the role of transmission limits, intermittent generation and grid congestion. These pressures are becoming more visible as renewable capacity expands. Electricity may be available in one part of the country but that does not mean it can be moved efficiently to where it is needed or absorbed by the system at the right time.

This is where curtailment becomes an important signal. Curtailment, the forced reduction of generation to preserve system stability, has intensified as renewable energy growth outpaces the infrastructure needed to transmit and integrate it. It is driven by several factors, including temporary oversupply, operational reliability requirements and limitations in the transmission network.

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