Scala Data Centers, the leading sustainable data center provider in Latin America, has once again proven its commitment to pushing technological boundaries by signing a landmark agreement with the Rio Grande do Sul government to develop the region’s largest-ever digital infrastructure project: Scala AI City. The partnership heralds the construction of Scala AI City, the largest and most advanced digital infrastructure project in South America, backed by an initial investment of $500 million. Over time, this investment is expected to skyrocket to upwards of $90 billion.

Strategically located in Eldorado do Sul, in the metropolitan area of Porto Alegre, Brazil, Scala AI City benefits from the region’s energy resources, safety from natural disasters and scalability for decades of expansion. In its first phase, it will bring a groundbreaking 54 MW IT capacity—larger than the entire Argentine market. With its strategic location, abundant energy supply and direct connectivity to the Malbec submarine cable, this development positions Rio Grande do Sul as a leader in digital innovation across Latin America. 

This project also holds global relevance, particularly for North American businesses and investors, as it showcases the growing interconnectivity between the Americas. With the rise of digital infrastructure investments, this partnership is poised to attract major U.S. and Canadian enterprises seeking to expand their cloud, colocation and digital services across Latin America. Additionally, as an advocate for sustainable growth, Scala AI City will be powered by 100% renewable energy and incorporate Scala’s FutureProof designs. The FutureProof project design is engineered to handle advanced AI training workloads, featuring racks with capacities exceeding 150kW—significantly surpassing the standard 20kW racks used in conventional setups. This cutting-edge infrastructure ensures scalability and high performance for AI-driven applications. These forward-thinking standards result in staggering low PUE rates and zero water usage cooling systems. The expected PUE for Scala AI City is an impressive 1.2—projected to be the lowest in Latin America.

By creating thousands of jobs and boosting various sectors, Scala AI City is set to drive the region’s economic recovery and lead Brazil into the future of AI-driven digital infrastructure.

Read more about the announcement.

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