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The Largest Digital City in Latin America Is Under Construction and It’s Brazilian!

Written by Carla Teles
Published on 24/04/2025 at 19:54
A maior cidade digital da América Latina está em construção e é brasileira!
A Scala está construindo uma cidade cheia de data centers no Rio Grande do Sul, voltada para inteligência artificial e nuvem. O lugar vai usar só energia limpa e promete gerar muitos empregos e inovação no Brasil.
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Project in Eldorado do Sul Will Be the Largest in Latin America and Promises to Boost Brazilian Digital Infrastructure

Scala Data Centers announced the construction of a technology megacomplex in Eldorado do Sul (RS), named Scala AI City. The project is expected to mobilize over R$ 3 billion and will focus on infrastructure for artificial intelligence and cloud computing, positioning Brazil as a reference in the sector.

Construction of the Digital City Aims to Meet New Demand for AI

Expected to cover more than 7 million square meters, the Scala AI City project will have a scalable energy capacity of up to 4.75 gigawatts. This construction represents a direct response to the accelerated growth of demand for data processing, especially for applications in artificial intelligence. The initiative also promises to generate around 3,000 direct and indirect jobs, contributing to regional development and the training of a qualified workforce.

100% Sustainable Operation and Use of Clean Energy

The Scala project will operate on 100% renewable and certified energy. In addition, the cooling systems will not use water, helping to protect the environment. Photo: Taís Teixeira/Ascom Sedec
The Scala project will operate on 100% renewable and certified energy. In addition, the cooling systems will not use water, helping to protect the environment. Photo: Taís Teixeira/Ascom Sedec

One of the highlights of the construction project is the commitment to sustainability. The company states that the entire operation of the data centers will be powered by renewable and certified energy. Furthermore, the cooling systems have been designed not to use water, aiming to minimize environmental impact, a growing concern in the technology sector.

Strategic Interconnection with National and International Hubs

The construction of the new data center city will be interconnected to an existing Scala structure in Porto Alegre and will eventually be connected to the Malbec submarine cable, which links São Paulo, Rio de Janeiro, and Buenos Aires. This network will strengthen Brazil’s position as a digital hub in South America, attracting investments and companies that rely on robust and secure connectivity.

Legal Issues Accompany the Progress of Construction

Despite the optimism surrounding the project, environmental licensing remains a point of concern. A municipal law specifically approved for Scala allows for the project authorization to be made through self-declaration, which has raised questions about the absence of clear regulations for data centers in Brazil. Experts argue that regulation needs to keep pace with the pace of technological innovation to ensure transparency and balance.

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Carla Teles

I produce daily content on economics, diverse topics, the automotive sector, technology, innovation, construction, and the oil and gas sector, with a focus on what truly matters to the Brazilian market. Here, you will find updated job opportunities and key industry developments. Have a content suggestion or want to advertise your job opening? Contact me: carlatdl016@gmail.com

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