French renewable energy company Voltalia has secured approval from the Brazilian government to develop a massive data centre project in the northeastern state of Ceará, with the investment expected to reach about $35.2 billion.
The project, planned for the Pecém port complex, has received government authorisation along with tax exemptions that are expected to support the development of the facility, according to Brazil’s government.
The proposed investment is valued at 181.7 billion reais, equivalent to about $35.24 billion, making it one of the largest planned data centre developments in Brazil.
Voltalia’s project will combine data centre infrastructure with new renewable energy capacity, with the company planning to expand wind and solar power generation to supply electricity to the facility.
The development will also feature a reclaimed-water cooling system, an approach aimed at reducing the pressure that large data centres can place on conventional water supplies.
The approval comes as demand for data centres continues to rise globally, driven largely by artificial intelligence, cloud computing and the rapid expansion of digital services.
Voltalia is now negotiating with potential customers for the facility, according to two people familiar with the project who spoke to Reuters.
The company is also working to secure long-term agreements with customers that would commit to purchasing capacity or services from the data centre once it becomes operational.
Brazilian lender Banco Santander Brasil has been hired to help find potential customers and negotiate offtake agreements for the project, the sources said.
Voltalia and Santander did not immediately respond to requests for comment.
The Pecém port complex has emerged as an increasingly important location for large-scale digital infrastructure projects, helped by Ceará’s strong renewable energy potential.
The region has significant wind and solar resources, giving developers an opportunity to build data centres around large supplies of renewable electricity at a time when technology companies are facing growing pressure to reduce the environmental impact of their operations.
Voltalia’s proposed facility would be the second major data centre project announced for the Pecém area.
A separate development backed by ByteDance, the Chinese owner of TikTok, is already under construction at the site following an agreement involving Brazilian energy companies.
The ByteDance project is expected to be powered by renewable energy, further highlighting the region’s appeal to technology companies seeking large amounts of electricity for data-intensive operations.
Brazil has been seeking to position itself as a major destination for the rapidly expanding data centre industry as companies around the world race to build infrastructure capable of handling artificial intelligence and other high-computing workloads.
President Luiz Inácio Lula da Silva has identified the development of the country’s digital infrastructure and technology sector as a priority, with the government seeking to attract major private investments into the industry.
The Voltalia project also highlights the growing connection between the renewable energy and data centre industries.
Large data centres require enormous and reliable supplies of electricity, while AI-focused facilities can consume significantly more power because of the computing resources required to train and operate advanced models.
By combining the planned data centre with additional wind and solar generation, Voltalia is seeking to address part of that energy requirement directly rather than relying solely on electricity from the wider grid.
The use of reclaimed water for cooling could also help address concerns over the environmental footprint of the facility.
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Data centres generate substantial amounts of heat and require sophisticated cooling systems to keep servers and other computing equipment operating safely. Water use has become an increasingly sensitive issue in locations where technology companies are building large computing facilities.
The scale of Voltalia’s proposed investment underscores the size of the opportunity Brazil sees in the global data centre market.
If completed as planned, the project would bring together renewable power generation, digital infrastructure and port facilities in a single development, potentially strengthening Ceará’s position as a technology and energy hub.
However, Voltalia still has work to do before the project becomes fully operational, particularly in securing customers and finalising the commercial arrangements needed to support the huge investment.
The company’s negotiations with potential customers and Santander’s search for offtake agreements will therefore be closely watched as the project moves from government approval towards construction and eventual deployment.
About the Author
Cecilia Attah is a tech analyst with a degree from Benue State University. She covers tech news and startups at TechRegard with a focus on how technology is transforming Africa and shaping the global landscape.
