The government of Rio Grande do Sul, in collaboration with the Secretariat for Economic Development (Sedec) and the municipality of Eldorado do Sul, sanctioned on Wednesday, the 18th, the law formalizing the creation of Brazil’s first data center technology hub. This initiative paves the way for the establishment of Scala AI City, a project by Scala Data Centers dedicated to processing artificial intelligence data. With an initial investment of R$ 3 billion and the potential to generate over 3,000 direct and indirect jobs, the hub will be the largest in Latin America.
Municipal Law 5.949/2024, approved on December 3, extends the urban perimeter to include the project area and streamlines bureaucratic processes, creating a favorable environment for the installation of data centers in the municipality.
Eldorado do Sul on the global technology map
Vice-Governor Gabriel Souza highlighted the project’s strategic importance for the state. “Artificial intelligence will be ubiquitous worldwide, but physical investments in technological infrastructure will remain rare. Rio Grande do Sul was chosen for its potential, reinforcing the need for legal security to attract further investments in this sector”.
Economic Development Secretary Ernani Polo emphasized the initiative’s positive impact. “This project not only strengthens the state’s position as a technological hub but also creates new economic opportunities, particularly in the expanding data center infrastructure sector”. Polo added that the renewable energy demand generated by Scala could accelerate the establishment of new wind farms in the region.
Eldorado do Sul Mayor Ernani de Freitas Gonçalves celebrated the milestone. “Today, we take a decisive step toward the future. This project places our city on the global map of technological innovation and creates tangible opportunities for our community”.
International vision and social commitment
Scala Data Centers Senior Vice President Luciano Fialho detailed the Scala AI City project, emphasizing its national and international significance. “The Scala AI City goes beyond technological investment. It showcases how innovation can transform lives, create jobs, train professionals, and promote sustainable practices”.
Scala Vice President Christiana Weisshuhn announced the donation of 110 laptops to local public schools, reinforcing the company’s commitment to social progress. “This initiative reflects our purpose of leaving a positive and lasting legacy in the communities where we operate”.
Memorandum of intent and economic impacts
The project was formalized in September with the signing of a memorandum of understanding between the state government, Eldorado do Sul’s municipality, and Scala Data Centers. In addition to securing the initial investment, the agreement includes workforce training and prioritizing local hiring.
Eldorado do Sul was chosen for its energy capacity, expansion potential, and strategic proximity to Scala’s data center in Porto Alegre, offering low latency and connections to major global hubs. The planned integration with the Malbec submarine cable, connecting Brazil and Argentina, adds further competitiveness to the project.
The hub is expected to drive sectors such as construction, telecommunications, and energy, boosting the local economy and positioning Rio Grande do Sul as a leader in the era of artificial intelligence and technological innovation.