As part of the Data Center World Tour story in Issue 12 of InterGlobix Magazine, I spoke about how Brazil leads the Latin American digital infrastructure market thanks to advancements in technology adoption, as cloud computing, 5G, and Internet of Things (IoT), as well as rising data traffic and connectivity network. I also mentioned how researchers predicted that by 2025, but now we have the opportunity to go further and become one of the top global markets due to artificial intelligence, machine learning and our sustainability strengths.
Today, we’re much closer to that reality. Scala Data Centers, the leading hyperscale sustainable data center platform in Latin America, has partnered with the Brazilian state of Rio Grande do Sul and the Department of Economic Development (Sedec) to begin construction of South America’s most significant and revolutionary digital infrastructure project to date: the Scala AI City. Combining Scala Data Center’s expertise in pioneering digital infrastructure in Latin America with the governmental support and state’s commitment to enabling the necessary regulatory, this collaboration will begin with the creation of Brazil’s first data center industrial district, in Eldorado do Sul.
The Capabilities of Scala AI City
This project is a monumental step towards the digital future of Latin America and positioning Brazil as a leader in the artificial intelligence (AI) revolution. Involving an initial investment of USD 500 million, the company estimates it could reach USD 50 billion when fully realized.
The technological focus of the Scala AI City aims to support the most demanding AI and ML workloads as high-performance computing becomes increasingly pervasive. Scala already operates the largest data center campus in the region, located in Barueri, São Paulo. With the completion of Phase 2, Scala’s Tamboré Campus will have 10 data centers in operation, totaling more than 200 IT MW. Once fully completed, the campus will feature 17 buildings and three power substations, making it one of the ten largest in the world, with 450 IT MW (or 600MW of total capacity), equivalent to the energy consumption of Brasília, the capital of Brazil.
To ensure the new builds can support AI training workloads reliably and efficiently, we already use future-proof design with rack densities up to 150kW—a stark contrast to the 20kW or less racks intended for other uses. The system is prepared to employ liquid cooling, which is a refrigerant-based cooling method that offers greater energy efficiency for this type of application.
As with any Scala data center design, sustainability will be a central development pillar. Scala AI City will rely on 100 percent renewable and certified energy and adopt cutting-edge technologies to minimize its environmental impact. Thanks to the milder climate in Southern Brazil, the data centers will be more efficient and designed to operate with a PUE (Power Usage Effectiveness) of ~1.2 and a WUE (Water Usage Effectiveness, which measures the efficiency of water use in the facilities) of zero, since it uses closed circuit loops and air cooling.
Redefining the Future of Technology and Economy in the Region
Eldorado do Sul was chosen as the location of this project not only because of its geographical features—it has proven safety from natural disasters, abundant energy supply, and real estate capacity that allows for continuous expansion over decades—but also because of its proximity to São Paulo, Rio de Janeiro, Buenos Aires and Montevideo. Part of these cities are currently linked via the 2,500 km Malbec submarine cable and, as Scala AI City gains scale, submarine cables may also branch off to Rio Grande do Sul for direct connections and expansion. Combined with interconnection to our existing SPOAPA01 data center in Porto Alegre, these features will provide Scala AI City with low-latency connectivity, access to mission-critical resources, opportunity to integrate with regional and global hubs, and secure long-term growth with sustainability. Therefore, the expansion potential is enormous, with the possibility of reaching 4.75GW.
Through the Scala AI City, we are not only elevating Brazil to a new technological level but also driving the state’s economic and social recovery and promoting the sustainable development of various industries. The construction of Scala AI City is expected to generate over 3,000 direct and indirect new jobs in the first phase alone, with plans to employ significant numbers of local labor and suppliers. This project will likewise boost the larger ecosystem around the energy, civil construction, and telecommunications industries, which will create a cycle of opportunity at both regional and global levels. As the region’s economic development grows, other companies from the digital infrastructure supply chain will be enticed to move into the area and develop it further.
Showcasing the Power of Collaboration
Beyond benefitting Brazil and Latin America, the development of Scala AI City highlights how strategic partnerships between local and global stakeholders in both private and public sectors can support monumental change for our industry and the people we serve. By working together, we have the potential to change the future of our countries and communities.
