Scala Data Centers secures partnerships with US and Chinese tech giants for Scala AI City project in Brazil
Brazilian data center developer Scala Data Centers, backed by DigitalBridge Group, is advancing the Scala AI City project in Porto Alegre, Brazil, with construction of the first phase expected to commence later in 2026. The project has secured approval for a power connection of up to 5 GW, equivalent to the energy consumption of São Paulo or London, positioning it as a major infrastructure initiative in South America. Scala is actively negotiating with unnamed US and Chinese technology giants to attract hyperscalers to deploy AI servers and high-performance chips within the facility, leveraging Brazil's geopolitical neutrality and abundant renewable energy resources. The first phase alone requires a $500 million investment in infrastructure, with hyperscalers expected to spend multiples of that amount on computing equipment, highlighting the project's scale and economic potential. Rio Grande do Sul's economic development secretary, Leandro Evaldt, emphasized the project's role in boosting the local economy and establishing the state as a technology and innovation hub in Latin America.
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