The initiative, dubbed Scala AI City, is a partnership between the local government and Scala Data Centers, a leading provider of sustainable hyperscale data center solutions in Latin America.
The legislation, Municipal Law 5.949/2024, expands the urban perimeter to accommodate the project and streamlines bureaucratic processes to allow a more business-friendly environment for data center operations. Developed with input from municipal and state authorities, the law reflects collaboration between Eldorado do Sul’s local council, the state government, and Scala.
Mayor Ernani de Freitas Gonçalves described the project as a transformative opportunity for the city.
“Eldorado do Sul is taking a decisive step toward the future. This initiative not only places our city on the global technology map but also brings tangible benefits to our community,” he said.
Vice Governor Gabriel Souza echoed these sentiments, emphasizing the potential for economic growth and inclusion, particularly as the region recovers from recent natural disasters.
Scala Data Centers also unveiled a social initiative to support local education by donating 110 computers to 13 public schools in Eldorado do Sul.
Scala AI City aims to address growing demand for data processing and AI workloads. The campus will be built to scale, starting with a 54 MW IT capacity and potentially expanding to 4.75 GW, equivalent to 6,500 football fields in area. The project has an initial investment of R$3 billion (US$500 million) and is expected to create over 3,000 direct and indirect jobs during its first phase.
The site will operate on 100% certified renewable energy, incorporate circular economy principles, and support educational partnerships to train local talent. Eldorado do Sul was chosen for its strategic energy resources, connectivity to global data hubs, and proximity to Scala’s SPOAPA01 data center in Porto Alegre.
The project’s timing coincides with increasing energy and capacity shortages in the US, offering an alternative for powershoring. The development also benefits from Brazil’s emerging infrastructure, including the upcoming Malbec submarine cable, which will enhance regional connectivity.
