Rio Grande do Sul
Brazilian state bordering Argentina and Uruguay; capital Porto Alegre, the country's largest wine producer.
Rio Grande do Sul will host a 120 MW national-grid connection for Scala Data Centers' AI City campus at Eldorado do Sul from January 2028. Brazil's regulator made the authorisation public on 10 September 2026.
Last refreshed: 18 October 2026 · Appears in 1 active topic
What tax regime did Brazil create for data centres in Rio Grande do Sul?
Timeline for Rio Grande do Sul
Mentioned in: Brazil auctions its grid to data centres
Data Centres: Boom and BacklashLula signs Redata law with water cap
Data Centres: Boom and BacklashMentioned in: Brazil links Scala Data Centers' AI City
Data Centres: Boom and BacklashBackground
Rio Grande do Sul is Brazil's southernmost state. Its frontier runs along Argentina and Uruguay, and its government sits in Porto Alegre. Agriculture, industry and services drive its economy, and the state produces more wine than any other in Brazil.
The state also sits on the map of Brazil's digital infrastructure. Scala Data Centers is building its AI City campus at Eldorado do Sul, and Brazil's grid authorities have set the site's connection at 120 MW from January 2028.
Federal rules frame any further growth. The Redata regime, signed into law on 15 September 2026, sets The National tax terms and water limit for data-centre builds in every state. Grid capacity is the other constraint: Brazil's first competitive round for connections, on 6 and 7 October, rationed capacity at four São Paulo points among data-centre bidders.
The state gains a 120 MW campus
Despacho 3.506, dated 3 September 2026 and gazetted on 10 September, cleared the AI City campus in Eldorado do Sul onto The National transmission grid. The site will draw power through a cut into the 525 kV line between Guaiba 3 and Nova Santa Rita, both in Rio Grande do Sul.
For the state, the order places one of Brazil's AI-scale campuses in the south rather than in the São Paulo cluster. Five days later, on 15 September, President Lula signed Redata, the federal tax regime for data-centre and AI construction. Any claimant in Rio Grande do Sul must keep water use at 0.05 litres per kilowatt-hour, checked every year, to keep the tax relief.
What is Brazil's Redata law?
Where is Rio Grande do Sul?
What is the capital and population of Rio Grande do Sul?
Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Updated 18 October 2026. Editorial standards.