Solaria to Build 500 MW Data Center Park in Uruguay Backed by $5.7 Billion Investment

Spanish renewable energy developer Solaria has signed an agreement with the Uruguayan government to develop a data center technology park in what would become the largest foreign investment ever announced in the country, according to government officials. The project carries a total planned investment of $5.7 billion and signals a significant push by Uruguay to position itself as a regional hub for digital infrastructure powered by renewable energy.

The initiative allocates $5.5 billion for the construction of data centers with a combined capacity of 500 MW, alongside $200 million for the development of 350 MW of solar PV capacity to supply renewable electricity to the facilities. The planned solar capacity, however, will not be sufficient to meet the data centers' full electricity demand, meaning additional power sources will be required to bridge the gap. The company has not disclosed details of the project's electrical configuration, grid connection requirements, potential energy storage systems, power supply agreements or the development schedule for each phase.

The technology park will be developed in two phases under Uruguay's free trade zone regime, with facilities spread across the departments of Canelones, San José and Florida. Construction is expected to continue through 2029, creating an estimated 3,100 jobs. Once fully operational, the complex is expected to employ approximately 1,500 people.

Renewable energy will play a central role in the project's electricity supply strategy. Uruguay already generates a substantial share of its electricity from renewable sources, and the planned 350 MW of solar capacity will provide additional generation to support the data centers. Solaria has operated in Uruguay for nearly a decade, with existing solar plants in Young, in the department of Río Negro, and Mercedes, in the department of Soriano. The latest agreement marks an expansion of its activities in the country into data center infrastructure supported by solar generation.

The project underscores a growing trend in Latin America of pairing large-scale data center development with renewable energy generation, as global demand for cloud computing and AI workloads continues to accelerate. For Uruguay, the investment represents a landmark moment in attracting foreign capital into its technology sector while leveraging its established renewable energy credentials. The success of the project will depend in part on how Solaria addresses the remaining electricity supply gap beyond the planned solar capacity, and on the regulatory framework governing free trade zone operations in the country.