FGV Study Identifies Brazil's Potential to Become a Global Digital Infrastructure Hub

Report estimates that expanding Brazil's digital infrastructure could create more than 230,000 permanent jobs and attract over US$698 billion in investment

BRASÍLIA, Brazil, July 7, 2026 /PRNewswire/ -- Brazil has the structural advantages to become one of the world's leading digital infrastructure hubs in the age of artificial intelligence (AI), according to the Study on the Socioeconomic Impact of Establishing Brazil as an International Digital Infrastructure Hub in the AI Era, developed by the Getulio Vargas Foundation (FGV) at the request of Scala Data Centers and Norgás. The study examines the economic impact of expanding digital infrastructure nationwide and identifies the factors that shape Brazil's competitiveness in the global market.

According to the report, Brazil's predominantly renewable energy matrix, strategic geographic location, large domestic market, and growing demand for cloud computing and artificial intelligence services position the country as a strong contender for global digital infrastructure investment.

The study projects substantial economic gains. In the most ambitious scenario, Brazil would expand its installed digital infrastructure capacity from approximately 1 GW to 13.7 GW by 2035, creating more than 230,000 permanent jobs. Of those, nearly 59,700 direct positions would support data center operations, while approximately 176,500 indirect and induced jobs would emerge across the supply chain and the broader economy. These figures reflect permanent operational employment only and exclude the temporary jobs generated during construction and project development.

The report also estimates that adding 12.7 GW of new capacity would attract between US$431.8 billion and US$698.5 billion in total investment (approximately R$2.3 trillion to R$3.7 trillion). Those investments would fund both physical infrastructures, including land acquisition, civil construction, electrical systems, mechanical and cooling equipment, building infrastructure, and security systems, and information technology equipment such as servers, storage systems, networking equipment, and AI accelerators.

FGV based its analysis on an Input-Output Matrix model, which measures how investments ripple through multiple sectors of the economy. Rather than viewing data centers solely as technology infrastructure, the study identifies them as a catalyst for economic development. Building and operating these facilities stimulates a broad value chain that includes electric power, construction, telecommunications, logistics, engineering, and specialized technical services.

According to the study, the sector's impact extends far beyond the construction phase. Data centers drive long-term gains in productivity, workforce development, regional economic growth, and business activity across multiple industries.

"The study uses an input-output model to capture the direct, indirect, and induced effects of investments in digital infrastructure, allowing us to measure how these projects activate entire supply chains," said Charles Schramm, Executive Project Manager at FGV. "Our findings show that the economic benefits extend well beyond the technology sector, generating meaningful gains in employment, income, and economic output across the broader economy."

The report also benchmarks Brazil against established global digital infrastructure hubs, including Virginia (U.S.), Singapore, Dubai, Japan, Portugal, Canada, and the FLAP-D cluster (Frankfurt, London, Amsterdam, Paris, and Dublin), evaluating each market across technological, economic, energy, and regulatory dimensions.

To strengthen Brazil's competitiveness and unlock its full potential, the study identifies several priorities, including stronger institutional coordination, a stable regulatory framework, and greater certainty around energy planning by aligning grid expansion with new digital infrastructure demand.

The report also concludes that Brazil's high tax burden on equipment and services undermines its global competitiveness by increasing the cost of bringing advanced technologies and productive capacity into the country.

To address these challenges, FGV proposes a four-part policy agenda:

• Industrial policies that encourage domestic hardware manufacturing;
• Recognition of data centers as strategic infrastructure within Brazil's power sector, where grid access and energy costs fundamentally shape project economics;
• A stable legal framework for tax incentives; and
• Regulatory coordination that aligns industrial, energy, tax, and digital governance policies under a common national strategy.

The study also identifies initiatives such as Redata, lower state import taxes currently under review by Confaz, Ex-Tariff incentives, and Export Processing Zones (ZPEs) as complementary tools that could narrow Brazil's competitive gap with other global hubs and attract greater investment in digital infrastructure.

FGV also recommends creating a national coordinating body that brings together federal, state, and local governments, sector regulators, and private industry to eliminate overlapping responsibilities, shorten project timelines, and provide greater certainty for future digital infrastructure investment.

According to the report, Brazil's growth as a global digital infrastructure hub will depend on its ability to strengthen the business environment, expand connectivity, and provide long-term investment certainty. As demand for AI infrastructure continues to accelerate worldwide, countries that align these factors will be best positioned to attract investment, develop industrial ecosystems, and strengthen their role in the global digital economy.

"The world's leading digital infrastructure markets, particularly the United States and Europe, face growing constraints on expanding capacity, including limited power availability, grid interconnection challenges, and a shortage of suitable land for new developments, even as demand for data processing and artificial intelligence continues to accelerate," said Luciano Fialho, Corporate Senior Vice President at Scala Data Centers. "Those constraints create an opening for new global hubs. Brazil offers a rare combination of large-scale energy availability, a predominantly renewable power matrix, significant expansion potential, abundant land, and strong connectivity to major international data routes. If the country acts now, it can attract investment on an unprecedented scale, create high-quality jobs, and establish itself as one of the world's leading digital infrastructure hubs."

About Scala Data Centers

Scala Data Centers is Latin America's leading sustainable hyperscale data center platform. Backed by DigitalBridge, the company has invested more than R$12 billion and manages approximately 300 MW of installed and under-development capacity, supported by a land bank of more than 12 million square meters. Scala also has more than 7.1 GW of power capacity reserved for future expansion, supplied entirely by certified renewable energy sources.

SOURCE Scala Data Centers