Scala Secures 5GW Authorisation for Scala AI City Project
Scala Data Centers has received authorisation from Brazil's Ministry of Mines and Energy for a 5GW power connection to the National Interconnected System, positioning the company to launch the first gigawatt-scale data centre campus in Latin America.
The energy authorisation, one of the largest ever issued by the Brazilian government, enables Scala to proceed with its AI City project, which will provide 4.75GW of power across a 10 million square metre site in Eldorado do Sul, Rio Grande do Sul state.
Phase 1 of the development includes an initial IT capacity of 54MW and represents a US$500m investment. The project aims to create more than 3,000 direct and indirect jobs and stimulate growth across energy, construction and telecommunications sectors in the region.
“Energy planning has evolved from a purely operational concern into a strategic competitive differentiator,” says Marcos Peigo, CEO and cofounder of Scala Data Centers.
“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.”
Scala AI City: Delivering advanced cooling technologies
The Scala AI City campus spans an area equivalent to 6,500 football fields and focuses on supporting AI workloads for global enterprises.
Its infrastructure includes racks with capacities exceeding 150kW, compared to the 20kW racks found in conventional data centres.
The facility will implement liquid cooling technology that uses zero water in cooling systems. Scala projects a Power Usage Effectiveness (PUE) of 1.2, which would rank as the lowest in Latin America.
Additionally, the project features long-term power-purchase agreements with wind and hydro generators and flexible energy-supply partnerships extending through at least 2039. Between 2020 and 2024, Scala's clean, I-REC–certified energy has avoided more than 80,000 tonnes of CO₂ emissions.
Enabling infrastructure connections
This news comes as the Latin American data centre industry continues to boom, with investors eager to capitalise on the region’s opportunities for innovation.
Just last week, another data centre company Elea Data Centers launched Rio Al City – a Brazilian data centre project to support AI growth with 3.2GW of renewable energy with delivery starting in 2026.
The initiative will involve several billion dollars, making it one of the largest digital infrastructure initiatives in Latin America (LATAM) and the world. Crucially, it will prioritise efficiency and sustainability, using waterless cooling systems, as part of Rio’s revitalisation plans.
For Scala, the location in Eldorado do Sul was selected for its energy resources, safety from natural disasters and capacity for expansion. The campus will connect to the Malbec submarine cable, providing sub-80 ms latency to North America.
The Government of Rio Grande do Sul has supported the project by expediting regulatory, energy and land-use approvals. This cooperation proved critical following devastating floods that affected the region earlier this year.
Vice Governor Gabriel Souza shares: “This law paves the way for a new era of progress and inclusion for the residents of Eldorado do Sul and Rio Grande do Sul, especially as we rebuild our city after the devastating floods earlier this year.”
Governor Eduardo Leite adds: “Rio Grande do Sul is at a historic juncture as home to Latin America's first data-centre city. Scala AI City will be a powerful engine for our state's economic and social development.
“It is an honour for our government to partner in this transformation, which positions Rio Grande do Sul as a global leader in the new digital economy.”
The authorisation confirms that key elements of the project are in place, including land ownership, zoning and critical energy connection. These factors position Scala to meet the increasing demand for data processing and AI capabilities from global enterprises.
Luciano Fialho, Senior Vice President of Corporate Development at Scala, said: “While the sector scrambles for power, leadership demands a long-term vision. We were ready before many even reacted.
The milestone confirms that Scala AI City is a concrete project, backed by owned land, defined zoning, proven expertise and an officially authorised energy connection. In a dynamic market, transparency, solidity and consistent execution set us apart.”
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