Brazil Energy Data Center

Projects for data centers and hydrogen and ammonia production with connection requests to Brazil’s National Grid by 2038 already total 54.2 GW, more than half of the highest electricity demand peak ever recorded in the country (105 GW in February 2025). According to Brazil’s Energy Research Company (EPE), this demand is split between 26.3 GW for data center projects and 27.9 GW for hydrogen-related facilities, underscoring the scale of new, electricity-intensive loads entering the system.

The surge in interest reflects Brazil’s high share of low-emissions generation and its potential for further renewable expansion, but project realization depends on several critical factors. Data center viability hinges on adequate telecommunications infrastructure, financial feasibility, and new grid-connection guarantee rules intended to deter speculative reservations that increase system costs. Hydrogen and ammonia projects face additional uncertainties related to international market demand, competitiveness, and the development of a domestic supply chain, shaping how and where projects advance.

Geographic concentration of demand is uneven, with hydrogen projects clustered primarily in the Northeast and data centers concentrated in São Paulo. This imbalance has prompted EPE to undertake targeted transmission-expansion studies to ensure reliable service to these large loads over the medium and long term, while minimizing congestion and curtailment risks. These dynamics are already driving requirements for new high-voltage transmission lines, substations, advanced power electronics, and digital grid-planning and management tools capable of integrating large, variable loads.

The impact of these projects is reflected in the Transmission Section of the 10-year Energy Expansion Plan (PDE 2035), published on December 23, 2026, which forecasts approximately USD 24 billion in transmission investments over the next decade. Of this total, around USD 20 billion is allocated to projects with concessions already awarded, while USD 3.7 billion remains tied to projects awaiting authorization. Investments will focus on transmission lines and substations designed to expand grid capacity, improve reliability, and accommodate new industrial-scale demand.

For U.S. companies, the scale and technical complexity of these investments translate into concrete opportunities across transmission equipment, substation systems, grid-management software, and advanced power-quality and load-management solutions. Data center projects are expected to drive demand for high-reliability substations, energy storage, and flexible grid-interface technologies, while hydrogen and ammonia facilities increase demand for systems that support large, variable industrial loads and absorb surplus renewable generation. These requirements favor U.S. suppliers of advanced grid technologies, engineering services, and digital solutions engaging through exports, partnerships, and utility-led procurements.

For more information and partnership opportunities, please contact Igly Serafim igly.serafim@trade.gov, Electricity Infrastructure Commercial Specialist, U.S. Commercial Service, Sao Paulo. 

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