Mongabay · Climate & nature

Renewable Energy Firms Drive Brazil Data Center Growth

Renewable energy companies are the primary drivers behind Brazil's expanding data center sector, according to an investigation by The Intercept Brasil and Mongabay.

As of December 2025, 65% of the 68 requests to connect data centers to Brazil's national power grid were from renewable energy firms. This surge is partly due to Brazil's surplus renewable energy production, which the national grid struggles to absorb, leading to costly production halts for power generators.

Renewable energy companies propose data centers as a solution, offering stable, long-term energy demand and income, thereby utilizing surplus power and avoiding grid disruptions. The Brazilian government supports this, offering tax exemptions for data centers meeting water efficiency and renewable energy criteria.

This trend, however, raises concerns for local communities. At least 29 municipalities planning data centers are also home to protected Quilombola or Indigenous communities, potentially impacting traditional territories.

Some analysts question this approach, suggesting that renewable energy should prioritize domestic needs or fossil fuel displacement rather than solely serving Big Tech's data center demands. They advocate for investments in transmission lines or batteries to better integrate this energy into societal use.

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