City Destroyed By Floods Will Become Headquarters For R$ 500 Billion Data Center Mega Project Led By Scala and the Government of Rio Grande do Sul

Written by Romário Pereira de Carvalho

Published on 27/04/2025 at 13:21

Créditos: Rafa Neddermeyer/Agência Brasil

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Data Center Project Promises To Transform Eldorado Do Sul Into A Tech Hub, But Environmental Impacts Raise Concerns

A year after the floods that devastated the state, the government of Rio Grande do Sul is betting on a new project to boost economic recovery. The municipality of Eldorado do Sul, which was completely destroyed by the natural disaster, was chosen to host the so-called Scala AI City, a city of data centers.

The venture is led by the company Scala, which forecasts an initial investment of R$ 3 billion. According to data accessed by Repórter Brasil, the total investment may reach R$ 500 billion.

The initiative was celebrated by the Secretary of Economic Development of the State, Ernani Polo (PP), who declared: “This is the opportunity to transform Rio Grande do Sul into the new Silicon Valley in Brazil.”

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Environmental Concerns Come To The Fore

Despite the optimism, experts warn of potential environmental impacts. In Brazil, there is still no specific legislation for the environmental licensing of data centers.

This type of venture consumes large volumes of water and energy, in addition to generating a significant amount of electronic waste.

The hydrologist Iporã Brito Possantti emphasized to Repórter Brasil the importance of rigor in environmental studies.

“This type of impact needs to be anticipated in the licensing process. It is important that there is no exemption from these studies because later it will be society, and the governments, who will have to pay to correct and mitigate the impacts. It is a matter of economy and justice,” he stated.

The expectation is that the installed capacity of Scala AI City will reach 4.75 GW, surpassing the generation of Brazil’s fourth largest hydroelectric plant, Jirau, in Rondônia.

With information from Diário do Comércio.

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City Destroyed By Floods Will Become Headquarters For R$ 500 Billion Data Center Mega Project Led By Scala and the Government of Rio Grande do Sul

Data Center Project Promises To Transform Eldorado Do Sul Into A Tech Hub, But Environmental Impacts Raise Concerns

Environmental Concerns Come To The Fore

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City Destroyed By Floods Will Become Headquarters For R$ 500 Billion Data Center Mega Project Led By Scala and the Government of Rio Grande do Sul

Data Center Project Promises To Transform Eldorado Do Sul Into A Tech Hub, But Environmental Impacts Raise Concerns

Environmental Concerns Come To The Fore

Brazil will harvest a record crop of up to 357 million tons of grains, but it does not have the capacity to store a large part of it. The storage deficit has reached the highest level in history and is equivalent to almost the entire production of Argentina.

Four times faster than the Concorde, capable of taking passengers from New York to London in less than an hour at Mach 5.5, and with an engine that switches from turbojet to ramjet mid-flight at Mach 3.5, the Hermeus Quarterhorse went from paper to its first flight in just 19 months.

SpaceX will dock a $843 million vehicle to the International Space Station to push a nearly 420-ton laboratory against the atmosphere and make the debris fall in a controlled manner into the ocean.

China opens the world’s first school where more than 100 humanoid robots from different brands will study together, each movement will be repeated up to 600 times a day and the data will feed a collective brain that will teach all the robots of the future.

Cambodia has started digging a nearly 180-kilometer canal to connect the Mekong River directly to the sea and reduce its dependence on the ports of neighboring Vietnam.

Scientists considered detonating 213 nuclear bombs in the Sahara to create an artificial sea the size of El Salvador, with each explosion being a hundred times more powerful than the Hiroshima bomb, and the goal was to generate more energy than Egypt’s largest hydroelectric plant.

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