Malbec submarine cable drives R$ 4 billion in data center investments in Brazil

The deployment of the Malbec submarine cable along the coast of Rio Grande do Sul has triggered over R$ 4 billion in data center investments in the Brazilian state. This new internet route, implemented through a partnership between Meta and V.tal, serves as a federal requirement to provide an alternative connection to the country's digital infrastructure.

Key projects include data centers by Tecto in Porto Alegre, as well as Scala AI City and Parks in the metropolitan region. The Malbec system connects Brazil to Argentina and will be linked to Porto Alegre via two independent fiber optic routes. This infrastructure aims to reduce dependence on terrestrial networks concentrated in the Southeast and increase connectivity resilience in the South.

Experts suggest that Brazil's total data center capacity could double by 2030. This growth is attributed to digital infrastructure investments and tax incentives such as the Special Tax Regime for Data Center Services (ReData). Analysts emphasize that increasing domestic computational capacity is vital for digital sovereignty and the training of technological models.