Tuesday, 02 January 2024 12:17 GMT

Bytedance Eyes Brazil For Major Data Center As Renewable Energy Drives Market Shift


(MENAFN- The Rio Times) Reuters reports that ByteDance, the Chinese parent of TikTok, is negotiating a major data center investment in Brazil. The company targets the Pecem port complex in Ceará, a region known for strong wind resources and proximity to submarine cable landings.

ByteDance seeks to partner with Casa dos Ventos, a leading renewable energy producer in Brazil. The initial plan centers on a 300-megawatt data center, with options to expand to 900 megawatts in a second phase.

Sources familiar with the matter indicate the project's total demand could reach 1 gigawatt. This scale would make it one of the largest data centers in Latin America.

ByteDance's move follows its recent announcement of an $8.8 billion investment in Thai data centers over five years. This signals a broader strategy to anchor operations in fast-growing markets.

Casa dos Ventos, which joined with TotalEnergies in 2022 to grow its wind portfolio, has already requested a grid connection for the Pecem project. Brazil's national grid operator initially rejected this due to concerns about grid stability, given the immense energy needs.


Brazil's Growing Data Center Market
The Ministry of Mines and Energy is now reviewing ways to raise grid capacity for data centers in Pecem and other regions. Brazil's data center market is expanding quickly, driven by the country's renewable energy mix and its position as Latin America's largest economy.

Data centers need reliable, round-the-clock power. Brazil's grid, powered mostly by hydro, wind, and solar, gives it a competitive advantage over regions that rely on fossil fuels.

Operators can negotiate direct power purchase agreements with energy producers, ensuring cost predictability and renewable sourcing. This project would make Brazil a key pillar in ByteDance's Western Hemisphere operations.

The company's interest in Brazil highlights a trend among global tech firms to anchor data infrastructure in regions with abundant clean energy. If realized, the Pecem facility would support ByteDance 's data processing needs while aligning with market demands for sustainable operations.

Casa dos Ventos has stated its commitment to transforming Pecem into a center for technological advancement and energy transition. The company is developing the country's largest data center and green hydrogen project, both powered by renewable energy.

ByteDance and TikTok have declined to comment on the ongoing negotiations. Brazilian authorities and Casa dos Ventos continue to assess the project's feasibility and impact.

MENAFN28042025007421016031ID1109480044



The Rio Times

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.

Search