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Brazil's Clean Energy Edge in the AI Race

ByNeelima N M
2025-05-06.6 days ago
Brazil's Clean Energy Edge in the AI Race
Brazil's Clean Energy Edge in the AI Race

With the fast-paced growth in AI adoption around the world, energy use in powering AI systems has become a major concern, especially in the US, according to a report by Time. As data center demand grows rapidly, the energy used for AI processes is changing the US emissions reduction path.

But Brazil is gearing up to be a major contender in this race, using its renewable energy resources to entice tech firms and emerge as a center for AI-based infrastructure.

Brazil's Renewable Energy Advantage

Brazil is unique in its clean energy potential, with almost 90% of its electricity coming from renewable sources, mostly hydropower. This provides the nation with a major advantage in terms of luring AI-centric data centers.

Brazilian authorities, such as Luis Manuel Rebelo Fernandes, Deputy Minister of Science, Technology, and Innovation, informed sources that they are marketing the nation's renewable energy policy, noting that AI power requirements can be fulfilled through such clean resources.

Attracting tech giants like Amazon and Microsoft, Brazil’s appeal lies not only in its energy infrastructure but also in its strategic location in South America and its supportive policy environment. With these strengths, Brazil is positioning itself to be a key player in the AI infrastructure market.

Also read: Nuclear Power Tapped to Meet AI’s Growing Energy Demands

A Legacy of Clean Energy Infrastructure

As Time says, Brazil's energy journey started in the late 19th century when it built dams to fuel its industry. With time, Brazil further developed its hydropower grid, establishing an extensive network for transmitting power from distant areas to cities. Contrary to the US with a dispersed energy network, Brazil's integrated power system allows electricity to be efficiently distributed, which only adds to its attractiveness as a destination for AI data centers.

While the advantages exist, Brazil is confronted with challenges like the effects of global warming on hydropower and increased electricity needs. To address this, the government has placed utmost importance on developing more renewable energy sources to go with new data center initiatives, as stipulated in Brazil's $4 billion AI plan.

Brazil's Strategic AI Investment

As the US and China dominate the AI competition worldwide, Brazil's clean energy emphasis gives it a special edge. Blending AI development with alternative energy solutions, Brazil is not only attracting foreign capital but also playing its part in the worldwide movement toward green technology. This approach makes Brazil a key player in the changing AI scenario.

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