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Billion-dollar investment could transform the city into an AI and data center hub, with thousands of jobs and a global impact.
Did you know that a small town in southern Brazil is about to be the epicenter of one of the largest technological investments in Latin America?
The city was chosen to host a mega digital infrastructure project that could revolutionize the economy of Rio Grande do Sul and, possibly, Brazil.
With an investment that could surpass the impressive mark of $ 500 billion, this initiative promises to create thousands of jobs and position Brazil as a leader in artificial intelligence and information technology.
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This transformation does not happen overnight, but the signing of a protocol between the government and Scala Data Centers kicks off the construction of the so-called Scala AI City, the city of data centers.
What is Scala AI City?
The announcement of the investment in Eldorado do Sul took place this Wednesday (11) during an event between the government of Rio Grande do Sul and Scala Data Centers.
According to the Secretariat of Economic Development (Sedec), the project will be carried out in Eldorado do Sul, in the metropolitan region of Porto Alegre, and is an unprecedented initiative that will transform the region into one of the main technological centers in Latin America.
Initially, the investment will be R$3 billion. However, according to the government, the total value could grow exponentially in the coming years, with the expectation of reaching up to R$500 billion.
According to Governor Eduardo Leite, this could be a great opportunity for Rio Grande do Sul to consolidate itself as a strategic hub in artificial intelligence and digital transformation.
Why was Eldorado do Sul chosen?
The choice of Eldorado do Sul was not by chance. The city, located just a few kilometers from the capital Porto Alegre, offers a series of strategic advantages.
Among them, the safety against natural disasters, the wide availability of electricity and the possibility of real estate expansion.
The location also provides direct access to Scala's SPOAPA01 data center in Porto Alegre, which already has infrastructure low latency and may connect in the future to the Malbec submarine cable, which connects São Paulo, Rio de Janeiro and Buenos Aires.
This combination of factors places the project in a prominent position not only in Brazil, but throughout Latin America.
According to Ernani Polo, Secretary of Economic Development, Rio Grande do Sul has shown itself to be an attractive state for investments in technology.
He also highlights the proximity to Mercosur countries, which further facilitates trade and the exchange of services between nations.
Economic impact and job creation
The construction of Scala AI City will be a milestone for the economic development of the region. The first phase of the project alone will generate more than 3 thousand direct and indirect jobs, covering sectors such as energy, construction and telecommunications.
And this is just the beginning. The ecosystem that will be created around the project will attract several companies from the technology sector, which promises to further boost the local economy.
Furthermore, Scala Data Centers is committed to use local labor, promoting the socioeconomic development of the community of Eldorado do Sul and surrounding areas.
For Marcos Peigo, CEO of Scala, the impact goes far beyond tech: “We are not only taking Brazil to a new technological level, but also driving the economic and social recovery of the State,” he said in a statement.
Unprecedented technological capacity
The initial capacity of Scala AI City will be 54 Megawatts (MW), what is it seven times higher to the capacity of other data centers in Greater Porto Alegre.
However, the potential for expansion is much greater, and could reach incredible 4.750 MW. This will be possible thanks to the use of advanced technologies such as liquid cooling, a liquid cooling technique that provides greater energy efficiency.
This data demonstrates that Scala AI City will be the largest digital infrastructure project in Latin America, placing Brazil in a prominent position in the global technology landscape.
According to the company, the project will adopt the design FutureProof, which allows the installation of racks for intensive loads, essential for AI training.
Sustainability and cutting-edge innovation
One of the central pillars of Scala AI City will be the sustainability process. All data centers in the city will be supplied with 100% renewable energy and will feature highly energy-efficient systems.
This includes a PUE (Power Usage Effectiveness) of no more than 1.2, which would be the smallest in Latin America, and a WUE (Water Usage Effectiveness) of zero, which means that there will be no use of water in the cooling systems.
These numbers are significant for an enterprise of this size, especially at a time when environmental concern is at the top of the global agenda.
Scala Data Centers has stood out for its practices of sustainability guided by ESG (Environmental, Social, Governance), which also attracts investors looking for projects aligned with these practices.
How does Scala AI City fit into the global digital economy?
Connection to major global technology hubs and access to submarine cables puts Scala AI City in a privileged position.
With the expansion of the artificial intelligence market and the growing demand for data center services, Eldorado do Sul could become a global reference in the sector.
According to experts, the city has the potential to attract multinational companies and consolidate itself as a strategic point of operations in Latin America.
Furthermore, Brazil is undergoing an accelerated digital transformation, with companies and governments adopting technological solutions to optimize services and increase competitiveness.
A strategic location of Eldorado do Sul, close to major economic centers such as São Paulo and Buenos Aires, offers a crucial advantage for companies looking to high quality and scalable infrastructure.
The future of the project in Eldorado do Sul
With expansion expected over the coming decades, Scala AI City promises to be much more than just a technology hub.
The positive impact on the economy and the creation of thousands of jobs are just the tip of the iceberg. Brazil may finally be at the forefront of the digital revolution, consolidating itself as one of the global leaders in artificial intelligence and information technology.
Now, the question remains: Do you believe that Brazil can become the new leader in technology and AI in Latin America, or does the Eldorado do Sul project still face challenges that could delay its implementation?
Brazil really needs this investment to reduce its dependence on countries that are leaders in the sector.
Very good for the city and the state, I just didn't understand the speech regarding one of the reasons for choosing the city, “safety against natural disasters”, the city was 100% submerged in the flood in May...
Isn't this city one of those that were flooded in May?
This type of business requires a strategic security point.
It should never be built in a border state. It should be built in a central region of the country. This does not mean that it has to be in Brasília, but in another state in the central-west region.