FEATURE
The scale is significant. Between January and August 2025, Brazil’ s renewable energy sector recorded estimated losses of R $ 1.7 billion due to curtailment, or US $ 340 million. During that same period, centralized solar generation experienced an average curtailment rate of 13.7 %, peaking at 27.8 % in June. Another study found that 17.2 % of the country’ s potential solar and wind generation had been discarded since the start of 2025.
These figures point to a structural problem. Brazil is generating large volumes of renewable power but system constraints are preventing part of that energy from being used productively.
Data centers are part of the conversation but not the villain
Against that backdrop, data centers are often treated as an emerging burden on the power system. But the numbers suggest a more measured view.
According to Brasscom, the association of Information and Communication Technology
( ICT) and Digital Technologies companies in Brazil, data centers represented 1.7 % of Brazil’ s total electricity consumption in 2024, equivalent to 8.2 TWh out of 650.4 TWh. Even with projected growth, that share is expected to reach 3.6 % by 2029. By comparison, the industrial sector accounted for roughly 36 % of electricity consumption and the residential sector about 28 %.
That doesn’ t mean data centers are insignificant. They are large loads and they need to be planned carefully. But it does mean the public narrative often exaggerates their role while understating broader inefficiencies in the system.
One example is distribution loss. In 2023, total losses in Brazil’ s electricity distribution network represented 14.1 % of the energy injected into the grid, including 7.4 % in technical losses and 6.7 % in non-technical losses. That volume was roughly equivalent to the annual residential consumption of Brazil’ s entire South region.
José Mendieta, Energy Director, Elea Data Centers
The challenge is increasingly relevant in any market trying to align renewable growth with transmission capacity, grid reliability and large new sources of demand. www. intelligentcio. com
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