TikTok's parent company, ByteDance, eyes data center in Brazil
What's the story
ByteDance, the Chinese parent of TikTok, is considering a major investment in a Brazilian data center.
The move would leverage the plentiful wind energy available on the country's northeast coast.
According to three sources familiar with the matter, who spoke to Reuters, ByteDance is currently in talks with renewable energy firm Casa dos Ventos for the project.
Regional impact
Brazil's ambition to become a global data center hub
The discussions come as Brazil, Latin America's largest economy, aims to position itself as a global hub for the fast-growing data center industry. The country's rich renewable energy resources are driving this ambition.
Initial discussions between ByteDance and Casa dos Ventos revolve around a 300MW data center, which could expand to 900MW in future phases.
The total demand for the project could go up to 1GW, one of the sources said.
Strategic location
Pecem port complex: Ideal location for data center
The Pecem port complex in Ceara state is being eyed for the data center because of its proximity to submarine cable landing stations, and high concentration of renewable power generation.
Casa dos Ventos, which worked with TotalEnergies on its wind power portfolio in 2022, has already sought grid connection for a data center project at Pecem.
However, Brazil's national grid operator ONS initially denied the request over stability concerns related to the heavy demands of such facilities.
Capacity assessment
Brazil's Mines and Energy Ministry reviews grid capacity
Brazil's Mines and Energy Ministry is reviewing the possibility of increasing grid capacity for data center projects in Pecem and other regions.
While TikTok has not commented on its plans in Brazil, Casa dos Ventos has reiterated its commitment to transforming the Pecem port into a center for technological innovation and energy transition.
The company is developing Brazil's largest data center as well as a green hydrogen project powered by renewable energy from its portfolio.