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Billion-Dollar Investment May Transform City Into Hub For AI And Data Centers, Creating Thousands Of Jobs And Global Impact.
Did you know that a small town in southern Brazil is set to become the epicenter of one of the largest technological investments in Latin America?
The city has been chosen to host a megaproject in digital infrastructure that could revolutionize the economy of Rio Grande do Sul and possibly Brazil.
With an investment that could surpass the impressive mark of US$ 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 doesn’t 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 data centers’ city.
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 Department of Economic Development (Sedec), the project will be carried out in Eldorado do Sul, in the metropolitan area of Porto Alegre, and is a groundbreaking initiative that will transform the region into one of the main technological centers in Latin America.
Initially, the investment will be US$ 3 billion. However, the government states that the total value could grow exponentially in the coming years, with the expectation of reaching up to US$ 500 billion.
According to Governor Eduardo Leite, this could be a major opportunity for Rio Grande do Sul to establish 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 town, located just a few kilometers from the capital Porto Alegre, offers a range of strategic advantages.
Among them, protection against natural disasters, ample availability of electricity, and the possibility of real estate expansion.
The location also provides direct access to Scala’s data center SPOAPA01 in Porto Alegre, which already has low latency infrastructure and could potentially connect to the Malbec submarine cable, linking São Paulo, Rio de Janeiro, and Buenos Aires.
This combination of factors puts 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 proven to be an attractive state for technology investments.
He also highlights the proximity to Mercosur countries, which further facilitates trade and service exchange among nations.
Economic Impact And Job Creation
The construction of Scala AI City will be a milestone for the region’s economic development. The first phase of the project alone will create over 3,000 direct and indirect jobs, encompassing sectors such as energy, construction, and telecommunications.
And this is just the beginning. The ecosystem that will be created around the project will attract various companies from the technology sector, further boosting the local economy.
Furthermore, Scala Data Centers is committed to utilizing local labor, promoting the socioeconomic development of the Eldorado do Sul community and its surroundings.
For Marcos Peigo, CEO of Scala, the impact goes far beyond technology: “We are not only elevating Brazil to a new technological level, but also driving the economic and social recovery of the State,” he stated in a statement.
Unprecedented Technological Capacity
The initial capacity of Scala AI City will be 54 Megawatts (MW), which is seven times higher than the capacity of other data centers in the Greater Porto Alegre area.
However, the potential for expansion is much greater, potentially reaching an 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.
These figures demonstrate that Scala AI City will be the largest digital infrastructure project in Latin America, positioning Brazil prominently in the global technology landscape.
According to the company, the project will adopt a FutureProof design, allowing for 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 sustainability. All the data centers in the city will be powered by 100% renewable energy and will feature high energy efficiency systems.
This includes a PUE (Power Usage Effectiveness) of a maximum of 1.2, which would be the lowest in Latin America, and a WUE (Water Usage Effectiveness) of zero, meaning there will be no water usage in the cooling systems.
These figures are significant for a project of this scale, especially at a time when environmental concerns are at the top of the global agenda.
Scala Data Centers has distinguished itself for its ESG (Environmental, Social, Governance)-driven sustainability practices, which also attract investors looking for projects aligned with these practices.
How Does Scala AI City Fit Into The Global Digital Economy?
The connection with 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 establish itself as a strategic operational hub in Latin America.
Moreover, Brazil is undergoing an accelerated digital transformation, with companies and governments adopting technological solutions to optimize services and increase competitiveness.
The strategic location of Eldorado do Sul, close to major economic centers like São Paulo and Buenos Aires, offers a crucial advantage for companies seeking high-quality and scalable infrastructure.
The Future Of The Project In Eldorado Do Sul
With expansion planned for 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, establishing itself as one of the global leaders in artificial intelligence and information technology.
Now, the question remains: Do you believe 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?
Este tipo de negócio, requer um ponto estratégico em segurança.
Jamais deveria ser construído em um estado fronteiriço. Deve ser construído em uma região central do país. Isto não quer dizer que tenha que ser em Brasília, mas em outro estado dá região centro-oeste.
Esta cidade não é uma das que foram inundadas no mês de maio?
Muito bom para a cidade e o estado, só não entendi a fala em relação a um dos motivos para a escolha da cidade, “segurança contra desastres naturais”, a cidade ficou 100% submersa na enchente de maio…