Skip to content
Welcome, thoughtbot's Giant Robots listeners!Start here
Data Centres: Boom and Backlash
8SEP

Brazil links Scala Data Centers' AI City

1 min read
13:06UTC

Brazil's electricity regulator authorised Scala Data Centers to connect its AI City campus in Rio Grande do Sul to the national grid, with 120 MW due from January 2028.

IndustryAssessed
Key takeaway

Scala Data Centers' AI City is due to draw 120 MW from Brazil's grid from January 2028.

Brazil's electricity regulator, the Agencia Nacional de Energia Eletrica (Aneel), authorised Scala Data Centers to connect its AI City campus at Eldorado do Sul, Rio Grande do Sul, to the national transmission grid⁠1. The order, Despacho 3.506, is dated 3 September and became public in the official gazette, the Diario Oficial da Uniao, on 10 September. It feeds the site through a cut into the 525 kV Guaiba 3 to Nova Santa Rita line.

The national grid operator's access opinion sets the connection for January 2028 at 120 MW, according to Telesintese⁠2. The despacho itself carries no megawatt figure.

The authorisation became public five days before President Lula signed Redata, the tax break the Senate had passed on 1 September. AI City now has a route onto the grid in the same month Brazil fixed the tax terms for qualifying data-centre builds.

Deep Analysis

In plain English

Brazil's electricity regulator Aneel formally approved Scala Data Centers' plan to connect its 'AI City' campus in Eldorado do Sul to the national power grid. The approved connection is for 120 megawatts starting in January 2028. The regulator's decision was dated 3 September but only became public when published in Brazil's official gazette on 10 September, which is the date that counts for when outsiders could first confirm the approval.

Deep Analysis
Root Causes

Aneel's approval is a single, confirmed connection for 120 MW from January 2028, distinct from any larger multi-gigawatt figure sometimes attached to Scala's wider campus plans.

Treating only the authorised figure as fact, rather than developer projections, matters because Brazil's data-centre coverage this fortnight has already had to correct one overstated figure in Lei 15.504's own passage.

First Reported In

Update #15 · Texas freezes data-centre permits

Diario Oficial da Uniao· 24 Sept 2026
Read original →
Causes and effects
This Event
Brazil links Scala Data Centers' AI City
Scala Data Centers now holds regulatory permission to connect AI City to Brazil's transmission grid, the step that comes before any power reaches the site.
Different Perspectives
Mohsen Rezaei
Mohsen Rezaei
The senior Iranian security official and former IRGC commander told Press TV that US-linked technology infrastructure in the region could become a target if war resumes. He named the UAE and valued the assets at more than US$2 trillion, without a breakdown.
Mykhailo Shelemba
Mykhailo Shelemba
Datagroup's chief executive says the Kyiv data centre hit on the night of 18 to 19 October is beyond repair. Services continue from backup sites, and no staff were hurt.
Kristen Umstattd
Kristen Umstattd
The Loudoun supervisor voted against fast-tracking Amazon's rezoning of the Ashburn campus. She said there were no figures yet on homes, school or road costs.
Akishima residents' litigation group
Akishima residents' litigation group
The group formed on 18 October and plans to sue Nihon GLP by year-end to stop eight data-centre buildings. Its lawyers will argue rights to life, health, clean water and a natural environment after mediation failed in August.
Óscar López
Óscar López
Spain's Digital Transformation minister said on 22 October he could not confirm when the data-centre decree will be approved. He added that Google has always committed to investing in Spain.
Google
Google
Google said it would comply with LVV's order to stop preparatory works at Muhos and Kajaani until environmental assessments finish. A spokesperson conceded the company had fallen short.

Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Editorial standards.