Eldorado do Sul's Landmark Move to Create AI City Data Hub

Eldorado do Sul's Groundbreaking Data Center Initiative

In a remarkable advancement for Brazil, the mayor of Eldorado do Sul has passed new legislation that facilitates the ambitious construction of Scala AI City, a project geared towards establishing Latin America's first dedicated data center city. This initiative, driven by an initial investment of $500 million, seeks to aid the area's economic recovery, particularly following the severe floods that occurred earlier this year.

Transforming Eldorado do Sul into a Tech Hub

The newly approved Municipal Law 5.949/2024 broadens the urban area designated for Scala AI City, thereby simplifying the bureaucratic processes involved. This move aims to create a more favorable business environment for data center operations, fostering technological growth in the region.

A Historic Signing Ceremony

Attending the signing ceremony for this pivotal legislation was Mayor Ernani de Freitas Gonçalves, who expressed the profound significance of this decision for both the city and the state of Rio Grande do Sul. "This project marks a decisive step toward the future for Eldorado do Sul. It not only puts our city on the global technological map but also creates tangible opportunities for our local community," Gonçalves stated passionately.

Support from State Officials

The participation of Vice Governor Gabriel Souza during the ceremony emphasized the initiative’s critical importance for the region's socioeconomic recovery. He remarked, "This law ushers in a new wave of progress and inclusion for both the residents of Eldorado do Sul and the wider state, particularly as we work to rebuild in the wake of recent floods." Other notable figures included the state’s Secretary of Economic Development Ernani Polo, Mayor-Elect Juliana Carvalho, and City Council representative Claudiomiro Piazza.

Scala Data Centers: A Commitment to Sustainability

Representing Scala Data Centers, Vice President Luciano Fialho reaffirmed the company's dedication to sustainability and positive community impacts. "Scala AI City represents more than just a technological investment; it symbolizes how innovation can meaningfully transform lives by creating employment opportunities, nurturing local talents, and supporting sustainable practices," stated Fialho.

Educational Initiatives and Community Engagement

In line with its commitment to the community, Scala Data Centers announced a charitable initiative. They pledged to donate 110 computers to all 13 public schools in the municipality, which aims to enhance educational resources and foster better learning environments. Vice President Christiana Weisshuhn highlighted, "This initiative will modernize schools and significantly improve students’ learning experiences, reflecting Scala's sustained commitment to making a positive difference where we operate."

Scala AI City: A Vision for the Future

Once completed, Scala AI City is poised to become Latin America's first data center city, catering to the growing needs for data processing and Artificial Intelligence workloads for global clients. Specifically designed to meet these demands, this project was initially announced during a ceremony at the Palácio Piratini, highlighting its significance for technological growth in the state.

The planned campus will serve as a hub for innovation and sustainability, adopting circular economy principles and relying on renewable energy sources. Additionally, Scala aims to create educational collaborations and training initiatives to prepare the local workforce for the digital economy's demands, ultimately positioning Eldorado do Sul as a leader in technology.

Economic Impact and Job Creation

With the anticipated investment of R$ 3 billion (approximately USD 500 million), Scala AI City is projected to generate over 3,000 direct and indirect jobs during its initial phase. The project also promises to stimulate a broad ecosystem involving multiple sectors such as construction, telecommunications, and energy, which are vital for the region's economic revitalization.

Sustainable Energy and Global Connectivity

Scala AI City is set to launch with an impressive 54 MW IT capacity, with plans to expand to an astounding 4.75 GW across 7 million square meters, an area equivalent to over 6,500 football fields. This scale not only highlights Brazil's potential but positions it as a global contender in the technology sector. Future investments may reach as high as R$ 500 billion (around USD 80 billion).

Embracing International AI Workloads

In addition to focusing on attracting international AI workloads, the project capitalizes on Brazil's capacity for powershoring, therefore exporting clean energy effectively. Scala AI City opens the doors for Brazil to become a prime location for handling extensive AI tasks, including essential processing with low latency, which is crucial for companies operating on a global scale.

Conclusion

As Eldorado do Sul embraces this ambitious development, it underscores the importance of establishing regulations that foster growth rather than hinder it. Mayor Gonçalves concluded, "We aim to create an environment that attracts global tech companies to invest in the community, ultimately catalyzing innovation and economic growth." With the passage of Municipal Law 5.949/2024, Scala is now poised to proceed with the next steps, securing necessary licenses and approvals that will bring this transformative vision to life.

Frequently Asked Questions

What is Scala AI City?

Scala AI City is set to be Latin America's first dedicated data center city, focusing on meeting the demands of data processing and AI workloads.

Who developed the new legislation for Scala AI City?

The legislation was developed by Eldorado do Sul's Secretariat of Planning, Governance, and Management with various supports from governmental offices and local authorities.

What are the expected job creations from this project?

The project is anticipated to create over 3,000 direct and indirect jobs during its initial development phase.

How does Scala AI City plan to incorporate sustainability?

Scala AI City aims to implement circular economy practices and operate entirely on certified renewable energy sources.

What is the significance of this project to the local community?

This project is intended to revitalize the local economy, enhance educational resources, and provide new technological opportunities and jobs for the community.

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