Legislation authorises the development of Scala AI City, with an initial investment of US$500 million to spur economic recovery following 2024 floods.
Marking a significant milestone for Brazil, the mayor of Eldorado do Sul, Rio Grande do Sul state, has signed into law new legislation enabling the construction of Latin America’s first data centre city.
This paves the way for Scala AI City, a government-led initiative in partnership with Scala Data Centers, a leading sustainable hyperscale data centre platform in Latin America. The project will transform the region into a global hub for digital infrastructure and Artificial Intelligence (AI).
Municipal Law 5.949/2024 expands the urban perimeter to include the designated area for Scala AI City while simplifying bureaucratic procedures to create a more business-friendly environment for data centre operations.
The legislation was developed by Eldorado do Sul’s Secretariat of Planning, Governance and Management (Seplan), with support from the municipal Attorney General’s Office, the City Council and the state government, and was approved by local legislators.
The signing ceremony was attended by Mayor Ernani de Freitas Gonçalves, who emphasised the transformative impact of this initiative for both the city and the state.
“Eldorado do Sul is taking a decisive step toward the future. This project puts our city on the global map of technological innovation while creating real opportunities for our community,” said Gonçalves.
Vice Governor Gabriel Souza also participated, highlighting the hub’s importance for the region’s socioeconomic development: “This law paves the way for a new era of progress and inclusion for the residents of Eldorado do Sul and Rio Grande do Sul, especially as we rebuild our city after the devastating floods earlier this year.”
Other attendees included the state’s Secretary of Economic Development, Ernani Polo; the Mayor-Elect, Juliana Carvalho; and City Council representative Claudiomiro Piazza, underscoring the collaboration between municipal and state authorities in making this project a reality.
Representing Scala Data Centers, Luciano Fialho, Senior Vice President of Corporate Development, reaffirmed the company’s commitment to sustainability and its positive impact on local communities. “Scala AI City is much more than a technological investment. It’s a testament to how innovation can transform lives by creating jobs, training local talent and promoting sustainable practices,” said Fialho.
During the event, Scala Data Centers announced a social initiative furthering its commitment to local communities: the donation of 110 computers to all 13 public educational institutions in the municipality. This programme will directly benefit the population by enhancing education and aligning with Scala’s mission to foster social and sustainable progress in the regions it serves.
“We are immensely proud of this initiative, which will help revitalise municipal schools, modernise educational resources, and enhance students’ learning experiences and engagement. This effort reflects our on-going commitment to leaving a lasting, positive legacy in the communities where we operate,” said Christiana Weisshuhn, Vice President of Marketing and Sustainability.
