Investment of 4 billion euros for AI use in Brazil
Application in energy and climate
eyesonsuriname
Amsterdam, May 3, 2025–Brazil sees opportunities in the context of closely intertwined issues regarding energy and climate that are impacted by the use of AI on energy demand. While technology companies worldwide are rapidly building new data centers, the emission reduction story, particularly in the United States, is being drastically rewritten.
In response, the Brazilian government is investing heavily in expanding other forms of renewable energy. New data centers must be accompanied by additional capacity from solar and wind energy.
This connection is explicitly included in the national AI plan of 4 billion dollars, launched in 2024. “Every expansion of high-performance computing is linked to specific, renewable energy sources in the plan,” according to a source.
The private sector is also playing an active role in this. In April, media reported that ByteDance, TikTok’s parent company, is exploring plans for a large-scale investment in a data center in Brazil, supported by new wind energy projects.
Although the AI race is currently dominated by the US and China—where most models and investments are concentrated—the Brazilian example underscores how attractive a sustainable energy infrastructure is in the global competitive field.
Strategic context
In Brasilia, it is said that AI is increasing energy demand globally and that energy and climate issues are increasingly intertwined with technological development. Therefore, Brazil sees this as an opportunity to distinguish itself.
The advantages for and of Brazil cannot be underestimated: 90% of electricity comes from renewable sources, especially hydropower. Additionally, there is a well-developed nationwide transmission network, and the country has a more or less strategic location in South America. Moreover, there is a positive investment and policy climate, which is why large technology companies such as Amazon and Microsoft are investing billions in data centers. There are multiple data centers under development throughout the country. These are part of the $4 billion AI plan launched in 2024.
Furthermore, every expansion of data centers is linked to specific sustainable energy projects. These, in turn, are aimed at strengthening energy security and increasing capacity. The risks are that changes in climate change also affect water levels, which poses a risk to hydropower. Additionally, a rapidly rising energy demand would put pressure on the electricity grid. But eternal optimists as Brazilians are, the country offers an extraordinary and fiscally attractive business climate for companies with climate goals. It competes with various other countries to attract foreign investments and claims to have sustainable energy as a strategic economic advantage.
