Renewable energy companies fuel Brazilian data center boom, investigation finds

Renewable energy firms are leading Brazil's expansion of data centers, according to a joint study by The Intercept Brasil and Mongabay. As of December 2025, there were 68 requests to connect new data centers to the country's power grid, with 65% of these initiated by renewable energy firms, such as wind and solar power operators.

Brazil generates more renewable energy than can be distributed efficiently, and its power grid often struggles to handle surplus energy, risking blackouts. To prevent this, the grid operator regularly orders power plants to reduce output, costing generators an estimated 3.2 billion reais ($617 million) in the first half of 2025 alone.

A solar plant had to cut production by nearly 40% in 2025. Renewable energy companies contend that data centers, which consume significant power, can offer stability and revenue for the renewable sector. The Brazilian government has sought partnerships with major tech companies, positioning Brazil as a sustainable location for data centers.

On September 15, President Luiz Inácio Lula da Silva signed legislation exempting qualifying data centers from certain equipment taxes if they use renewable or low-emission energy and meet water efficiency standards. In April 2026, Brazil's foreign trade agency, Apex, hosted a U.S. roundtable to attract foreign investment for eco-friendly data centers.