Brazil targets seven cities for data center expansion

A study by territorial intelligence firm Allrea identified seven Brazilian cities—Sorocaba (SP), Araraquara (SP), Joinville (SC), Ponta Grossa (PR), Rio de Janeiro (RJ), Nova Iguaçu (RJ) and Queimados (RJ)—as prime locations for new data centers. The selection criteria focus on existing electricity substation capacity, logistical access, large‑scale land availability and compatible zoning, with investors preferring sites where power infrastructure can support the high energy demand of data‑center operations.

A separate analysis by the Fundação Getulio Vargas estimates that a single 100‑megawatt data center could contribute up to R$1.5 billion to Brazil’s GDP and generate R$590 million in labor income, requiring roughly R$25 billion in total investment. The project would create about 12,560 direct and indirect jobs during construction, with roughly 15% of those positions persisting permanently for operations, maintenance and management. The reports also note concerns from the national telecom regulator about concentrating data‑processing capacity in a few metropolitan areas, urging a more geographically dispersed rollout to enhance system security and reduce regional asymmetries.