Brazil Energy Demands and Data Center Growth
Brazil’s data center boom – driven by hyperscale investments from Microsoft, AWS, and others – is set to increase electricity demand nearly 20-fold by 2035, creating both grid challenges and major opportunities for U.S. suppliers of energy and data infrastructure solutions.
Brazil’s rapidly expanding data center industry is driving unprecedented growth in electricity demand, presenting both opportunities and challenges for the energy system. Global players such as Microsoft, AWS, and potentially ByteDance are scaling energy-intensive facilities, reshaping the national power landscape. According to Canal Solar, energy demand from grid-connected data centers rose over 330% in one year. If planned projects proceed, total demand could reach 13.2 GW by 2035, up from 707 MW in 2023, with the bulk concentrated in São Paulo and Rio de Janeiro.
Major Investments
Hyperscale investments are transforming Brazil’s infrastructure. Microsoft plans a U.S. $2.7 billion expansion, AWS U.S. $1.8 billion by 2027, and ByteDance is considering a 1 GW campus in Ceará powered entirely by renewables. Local initiatives include Scala Data Centers’ “AI City” in Rio Grande do Sul, potentially consuming 4.75 GW, and a new hyperscale campus in Minas Gerais starting at 54 MW.
Emerging Risks and Responses
While Brazil’s renewable-heavy grid provides a competitive edge, rapid demand growth challenges grid resilience, water availability, and fair distribution. Regional transmission disparities and congestion are already evident. Operators are mitigating risks via long-term contracts, on-site generation, and battery storage, while the federal government integrates data infrastructure into its U.S. $4 billion AI agenda.
Opportunities for U.S. Suppliers
Brazil’s rapidly expanding energy needs and data center boom present major opportunities for U.S. technology providers. Companies offering data center infrastructure, energy-efficient cooling, renewable integration, battery storage, grid management software, and cybersecurity can support scalable, resilient, and secure operations. Effective management of this expansion promises to strengthen Brazil’s energy security, digital ecosystem, and international technology partnerships.
Contact
For more information on Brazil’s data center sector and related opportunities for U.S. companies, please contact Igly Serafim, Commercial Specialist at the U.S. Consulate in Sao Paulo, Brazil, at igly.serafim@trade.gov.