Rio Aims to Become AI Capital: City and BNDES Launch R$ 357 Billion Data Center Project

The Rio AI City project is set to transform Barra da Tijuca into one of Latin America’s largest data center hubs, with plans for 3 GW of installed capacity by 2032 and estimated investments of R$ 357 billion

Eduardo Paes, Mayor of the City of Rio de Janeiro

By: SiiLA News

07/03/2025

Rio de Janeiro is becoming increasingly tech-driven. On Tuesday (1st), the city government signed a memorandum of understanding with BNDES to implement the Rio AI City project, aimed at turning Barra da Tijuca into a major data center hub.

The signing ceremony took place at BNDES headquarters and was attended by Mayor Eduardo Paes, who signed the document alongside Nelson Barbosa, Director of Planning at BNDES, representing the institution’s president, Aloizio Mercadante. Also present were Ministers Luciana Santos (Science and Technology) and Esther Dweck (Public Management and Innovation), along with Ivan Monteiro, CEO of Eletrobras, and Luiz Antonio Elias, CEO of Finep.

“This agreement confirms that Rio is the most prepared city to host this kind of project. We have a robust internet infrastructure, with extensive underground cable networks and high-density fiber optics. But above all, we have what matters most: human capital. Qualified professionals, top research centers, companies, and universities already operating in this ecosystem. Rio has all the necessary elements to support and lead this market,” said Paes during the event.

According to the city government, Rio AI City will play a strategic role in implementing artificial intelligence technologies, data center infrastructure, supercomputing, and digital transformation across Brazil. The memorandum outlines a goal of reaching 3 gigawatts of capacity by 2032, with an estimated cost of US$ 65 billion — roughly R$ 357.5 billion.

Investments

During the event, BNDES also announced plans to create a dedicated fund for data center and AI projects, with expected investments ranging from R$ 500 million to R$ 1 billion. The initiative is part of the bank’s renewed push into equity investments through BNDESPar, its private equity arm.

According to Nelson Barbosa, the initiative will be structured within the R$ 10 billion package previously announced by Aloizio Mercadante for investments in company shares — half of which will be funneled through private equity funds (FIPs).

Why Rio?

In addition to its strategic geographic location, Rio is home to a network of intercontinental submarine cables, significantly enhancing its connectivity capacity.

Fernanda Belchior, Director of Communications and Marketing at Elea — the company behind the project — emphasized that the initiative will boost the artificial intelligence market, as the sector requires significant investment in data centers.

“The city of Rio de Janeiro is strategically positioned, with one of the most stable power grids in the world, offering 99.8% availability and relying exclusively on energy from renewable sources. In addition, it is internationally connected through submarine cables, which places Rio at the epicenter of connectivity, energy, and strategic logistics for the sector,” said Belchior.

Other Initiatives

Rio AI City is not the only such project underway in Brazil. In Ceará, Casa dos Ventos — a company specializing in renewable energy — is investing in a data center at the Pecém port complex, previously reported by REsource.

The company plans to invest R$ 50 billion in a facility with a capacity of 300 megawatts. According to Reuters, the firm is in talks with major global players, including ByteDance, owner of TikTok.

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