Scala AI City will be situated in Eldorado do Sul. Credit: Scala Data Centers/PR Newswire.

Brazilian state Rio Grande do Sul’s government, via the Department of Economic Development, and Scala Data Centers have signed a letter of intent for the construction of Scala AI City. 

Scala AI City is a digital infrastructure project in the South American country. It will be situated in Eldorado do Sul, within the metropolitan region of Porto Alegre. 

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Scala Data Centers CEO and co-founder Marcos Peigo said: “Today, we take a monumental step toward the digital future of Latin America with the creation of Scala AI City. This project, born from a visionary partnership with the Rio Grande do Sul government, represents an initial investment of $500m and the construction of what could be the largest and most innovative digital infrastructure project on the continent.  

“Scala AI City will be a milestone of innovation, positioning Rio Grande do Sul and Brazil as global leaders in the AI revolution. This is a historic moment that redefines the future of technology and the economy in the region, with the potential to change the future of our country.” 

The development is set to be linked with Scala’s existing SPOAPA01 data centre in Porto Alegre and the Malbec submarine cable, enhancing scalability and operational resilience. 

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Construction of Scala AI City is expected to generate more than 3,000 new jobs, both directly and indirectly, during its initial phase.  

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The first phase will see an IT capacity of 54MW, surpassing the current capacity in Greater Porto Alegre.  

Future expansions could potentially increase the capacity to 4,750MW across more than 1,730 acres. 

The project’s design, termed FutureProof, will accommodate racks capable of supporting AI training workloads with capacities over 150kW, a stark contrast to the standard 20kW racks.  

Furthermore, the data centre will use liquid cooling technology, which is more energy-efficient for such applications.  

Prioritising sustainability, the company’s data centres rely on 100% renewable energy and aim for a Power Usage Effectiveness of no more than 1.2 and a Water Usage Effectiveness of zero.

Strategic partnerships with both global and local stakeholders support the development of Scala AI City.