Scala AI City: Brazil’s Ministry of Mines and Energy approves 5 GW power connection for data center city in Rio Grande do Sul

Scala Data Centers ensures it can meet the exponential surge in data-processing and AI workloads demanded by major global enterprises.


Scala Data Centers has announced authorization from Brazil’s Ministry of Mines and Energy (MME) for a 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 and efficiently.


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% 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, 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.


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,”Governor Leite said.


Announced in September 2024 Scala AI City is the first LATAM 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% 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 (US$ 500m) investment, will create over 3,000 direct and indirect jobs and catalyze growth across energy, construction and telecommunications sectors.

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