Renewable energy companies are driving most of Brazil’s plans for new data centers, according to a recent joint analysis by The Intercept Brasil and Mongabay. As of December 2025 there were 68 requests to connect data centers to Brazil’s national power grid with 65% registered by renewable energy companies, including wind and solar power plants, the investigation found. Brazil produces more renewable energy than it can distribute across its territory, and the national power grid cannot always absorb all the power generated by renewable energy plants. Doing so would cause disruptions in provision, and potentially even blackouts. To avoid this, the national grid operator frequently orders plants to halt production. In the first half of 2025 such measures cost power generators an estimated 3.2 billion reais ($617 million). One solar plant was forced to cut production by nearly 40% in 2025. Renewable energy companies argue that data centers, which constantly demand large amounts of energy, can provide more stability and income for the renewable energy sector. The Brazilian government has been actively seeking deals with big tech companies, advertising Brazil as an environmentally friendly host for data centers. On Sept. 15, President Luiz Inácio Lula da Silva signed a law exempting data centers from several taxes on equipment purchases if they meet water efficiency criteria and use renewable or low-emission energy. In April 2026, Brazil’s foreign trade agency, Apex, organized a roundtable in the U.S. to attract foreign investment for sustainable data centers. “Renewable energy companies are able to sign…This article was originally published on Mongabay

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