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Terranova Receives Approval to Launch the Campinas Campus in Barão Geraldo; Complex Will Feature 115,000 m² of Built Space, a 300 MW Substation, and Infrastructure Prepared for Growth Up to 1 GW
A site of approximately 944,000 square meters in Campinas, São Paulo, has begun the transformation into infrastructure created specifically for one of the activities that currently puts the most strain on electrical grids: artificial intelligence processing. The Campinas Campus is part of an investment announced at around R$ 5 billion (about US$ 900 million), will feature 216 MW of IT capacity in its first phase, and has potential for future expansions bringing total investments up to R$ 20 billion (about US$ 3.6 billion).
The announcement was made on August 20, 2026, during a ceremony at Fazenda Pau D’Alho in Barão Geraldo. At the event, the city of Campinas issued a permit to Terranova, authorizing the implementation of the project in the Innovation for Sustainable Development Pole (PIDS). The municipal administration also indicated an expectation of approximately 3,600 direct and indirect jobs linked to the project.
However, the billions represent only a part of the scale.
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Of the nearly 944,000 m² of the land, about 115,000 m² will be designated for buildings. The electrical infrastructure will start with a 300 MW substation, while already reserved areas will allow for an increase in computing capacity from 216 MW to 386 MW in later phases. In the long term, the energy infrastructure is designed with the potential to reach 1 gigawatt.
It is this combination of land, energy, and computational capacity that makes the project more significant than mere warehouses filled with servers.
From 216 MW to 386 MW: AI Places Electricity at the Center of the Project
From the outside, a data center may resemble a massive enclosed industrial complex.
Inside, however, thousands of servers must operate continuously, processing information, training models, and running digital applications without prolonged interruptions.
At the Campinas Campus, the first phase anticipates 216 MW dedicated to information technology equipment.
This figure should not be confused with the total capacity of the substation.
The electrical installation will initially have 300 MW, with energization expected by December 2027, according to information released by Data Center Dynamics. The planning allows this structure to be expanded in the future to up to 1 GW.
Meanwhile, the capacity directly allocated to computational infrastructure may increase from 216 MW to 386 MW.
This leap aligns with a transformation already seen in various markets: artificial intelligence is demanding ever-larger and more energy-intensive digital facilities.
The CPG has already demonstrated how this expansion has placed electricity at the center of Brazil’s rush for digital infrastructure, with tens of gigawatts in connection requests submitted to the electrical system.
Race for Data Centers in Brazil Increases Pressure on Critical Energy
R$ 5 Billion Kicks Off the Project, But Expansion Could Bring Total Investment to R$ 20 Billion
The city of Campinas presented the project with an initial investment of approximately R$ 5 billion (about US$ 900 million).
In the subsequent phases, the volume may reach R$ 20 billion (about US$ 3.6 billion), depending on the expansion of the structure.
However, there is an important difference between the various reported figures regarding the investments.
Data Center Dynamics reported that the construction and installation of the first phase by Terranova exceeds US$ 500 million, approximately R$ 2.6 billion using the publication’s conversion. The report adds that the end customers themselves will need to invest additional amounts in processors, servers, and other equipment installed within the campus.
This helps explain why different figures may appear when measuring a project of this kind.
One aspect is the investment in the physical infrastructure of the operator.
Another is the capital required to fill the buildings with servers, AI accelerators, storage systems, networking equipment, and other technological components.
And this second layer can represent additional billions.
More than 3,000 workers may pass through the construction site before servers begin operating
The number of jobs also changes depending on the observed phase.
The City Hall of Campinas disclosed an expectation of approximately 3,600 direct and indirect jobs related to the project.
Data presented by Terranova to the data center sector indicates approximately 3,000 workers at the peak of construction, including direct and indirect labor.
When the complex enters the operational phase, the dynamics change.
The estimate released by Data Center Dynamics is to reach about 650 specialized professionals within five years.
This difference is significant.
Mega construction projects mobilize thousands of people during earthworks, foundations, civil construction, electrical assembly, and systems installation.
Later, when the asset begins operating, the workforce becomes smaller and more specialized.
During the implementation, the project is expected to create demand for areas such as civil engineering, earthworks, structures, electrical installations, substations, emergency generation, cabling, fiber optics, automation, security, fire fighting, and cooling systems.
Closed-loop liquid cooling attempts to address one of the biggest challenges of AI data centers
The higher the computational density, the greater the challenge of removing heat from equipment.
That’s why one of the technologies highlighted at the Campinas Campus is not directly linked to processing power.
It is related to water and cooling.
The project was designed with closed-loop liquid cooling.
According to Terranova, the technology allows for the reuse of the fluid used in the system and significantly reduces the continuous water consumption needed to cool the processors. The company also associates the design with the reduction of energy consumption required for climate control.
This issue has gained importance because artificial intelligence data centers concentrate chips with enormous power density.
Conventional systems based primarily on air circulation become progressively less efficient as the amount of heat generated by each rack increases.
That’s why liquid cooling is beginning to appear in projects designed specifically for the new generation of AI accelerators.
Of the 944,000 m², about 285,000 will be preserved or allocated to the municipality
The size of the land is also noteworthy.
With approximately 944,000 m², the Campinas Campus will occupy an area equivalent to dozens of city blocks.
However, only a portion will be covered by buildings.
About 115,000 m² will be allocated for built-up area, while approximately 285,000 m² will remain as green space or be designated for the municipality.
The planning also includes urban infrastructure, such as public roads and systems for water and sewage treatment.
The location was also not chosen by chance.
The project will be located in the Innovation for Sustainable Development Pole (PIDS), in Barão Geraldo, an area marked by proximity to universities, research centers, and technology companies.
According to the municipal administration, Terranova has become the first company to receive a tax incentive for installation within the PIDS.
The São Paulo project does not appear in isolation.
Brazil is experiencing a race for data centers driven by the growth of cloud computing and, mainly, by the advancement of artificial intelligence.
CPG has shown that the country leads the Latin American data center market, concentrating about half of the regional capacity and has projections to receive tens of billions of reais in new investments.
Another study published by CPG showed that Brazil’s segment capacity is on track for significant expansion by the end of the decade.
Brazil’s data center market could reach 1.8 GW by 2029
Campinas is now competing for a share of this market with a specific advantage: a consolidated ecosystem of universities, telecommunications, technology, and specialized professionals.
The dimension of this race becomes clearer when the São Paulo project is placed alongside other Brazilian announcements.
In Ceará, for example, the country is already monitoring a megacomplex of data centers linked to ByteDance, owner of TikTok, with a projected investment scale that could reach tens of billions of dollars in various phases.
Data center complex linked to the owner of TikTok could involve R$ 200 billion in Ceará
Another similar aspect between the projects is the importance of energy.
In Ceará, billion-dollar agreements have already been structured precisely to ensure electricity for the complex.
TikTok data center closes R$ 10 billion deal and centers energy as a core operation
The comparison reveals an important shift.
Data centers have moved beyond being merely telecommunications projects.
They have also become large energy, engineering, and construction projects.
Substation Capable of Expanding to 1 GW Shows Why Energy Has Become the New Bottleneck for Artificial Intelligence
The electrical infrastructure planned in Campinas might be the best example of this transformation.
The campus begins with a substation of 300 MW.
However, the physical project allows for an expansion to up to 1 GW.
This design does not mean that the complex will immediately consume 1 GW.
Capacity will be added as new phases are developed and as customer demand arises.
Even so, reserving infrastructure for this scale from the beginning demonstrates how energy decisions need to be made years before servers go live.
The problem has already reached a global scale.
In another analysis, CPG showed how the explosion of electricity consumption by AI data centers has led technology companies to seek contracts related to nuclear energy.
AI Data Centers Advance on Nuclear Energy Projects
The more computing power is installed, the greater the underlying infrastructure needs to be.
Government Created Incentives as Data Centers Take Up Space in Industrial Policy
This expansion has also extended to legislation.
In early September, the Senate approved Redata, an incentive program aimed at data centers, with an estimated tax waiver of R$ 7.25 billion (about US$ 1.3 billion) between 2026 and 2028 and requirements related to domestic capacity, research, energy, and water.
The policy indicates that the competition is no longer just about cities and companies.
It has become part of a national strategy to attract digital infrastructure.
The projects involve substantial investments and demand for energy, but they also raise questions about which parts of the technology chain will remain in Brazil.
Construction Advances in Phases and Expansion Is Planned Until 2029
The Campinas Campus will not be built all at once.
The project has been divided into phases.
The initial substation of 300 MW is expected to come online in December 2027, while expansions of the complex are planned for the following years, reaching up to 2029.
The initial capacity of 216 MW of IT could then advance towards the 386 MW anticipated in the planning.
At the same time, Terranova intends to establish partnerships with universities, research centers, and training institutions in the region to develop specialized professionals.
The project thus begins with two distinct scales.
The first is already defined: 944,000 m² of land, 216 MW of IT, a 300 MW substation, and billions of reais in initial investments.
The second will depend on the coming years: new clients, new buildings, and infrastructure expansion could bring the campus to 386 MW of computing capacity, move its energy structure closer to 1 GW, and raise total investment to as much as R$ 20 billion (about US$ 3.6 billion).
What was once a large area in Barão Geraldo is now beginning to take on a new role: housing one of the physical infrastructures that will enable the processing of the next generation of artificial intelligence in Brazil.
