Data centers and AI bring investment to Latin AmericaCEFR B1
29 Apr 2026
Adapted from Daria Dergacheva, Global Voices • CC BY 3.0
Photo by Cristian Soriano, Unsplash
Data centers power online services and the expanding field of generative artificial intelligence. Investigations found thousands of meetings between tech executives and government officials from 2012 to 2025 as companies sought to attract these projects to Latin America.
Brazil leads the region, with 206 data centers across 34 markets, says Data Center Map. The federal government expects USD 3 trillion in investments over the next five years and has introduced tax incentives. In 2024 Scala announced a planned "AI City" in Eldorado do Sul, estimated at 7 million square metres and costing at least USD 50 billion.
Local reporting says environmental licensing may be simplified for the project. The Ministry for Mining and Energy authorised access to 1.8 GigaWatts of power, equivalent to a city of 6 million people. Critics warn data centers need much energy and water, create noise and air pollution, and often bring few local jobs once built.
Investigations using NASA data found a heat island linked to an Antel data center in Uruguay. Community actions have also delayed projects: residents in Cerrillos, Chile, stopped a Google project in 2024, and Google suspended a USD 40 million investment while it proposed new cooling limits. Consumer groups call for clearer regulation to avoid social and environmental harm.
Difficult words
- data center — large building where computers store and process informationdata centers
- generative — that produces new content using algorithms
- incentive — something that encourages investment or actiontax incentives
- investment — money used to start or grow a projectinvestments
- heat island — urban area that is warmer than nearby land
- environmental — related to nature and protection of the natural world
- regulation — official rule to control behavior or activity
Tip: hover, focus or tap highlighted words in the article to see quick definitions while you read or listen.
Discussion questions
- Do you think governments should offer tax incentives for large data center projects? Why or why not?
- How could local communities reduce environmental harm from data centers in their area?
- Would you prefer data center jobs or other types of industry in your town? Explain briefly.
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