ByteDance Consider Data Center Projects In Brazil

TikTok wants to build a data center in Brazil utilizing the abundant potential wind energy on Brazil's northeastern coast. (photo: x @SeeNewsNenew)

JAKARTA - ByteDance, a Chinese company that is the parent company of TikTok, is considering large investments to build a data center in Brazil. This was revealed, according to information from three sources familiar with the plan. The project will take advantage of the abundant potential wind energy on the northeastern coast of Brazil.

According to two sources, ByteDance is in discussions to partner with renewable energy producer Casa dos Ventos to develop data center facilities at the PCem port complex, the state of Ceara. They spoke on condition of anonymity because these negotiations were confidential.

The initial discussion was said to focus on building a data center with a capacity of 300 megawatts (MW), but this project could be expanded to 900 MW in the second phase. Another source even said the total project needs could be close to 1 gigawatt.

If realized, this project will make Brazil an important pillar of ByteDance's operations in the West. Previously, in February, ByteDance also announced an investment plan of US$8.8 billion in data center construction in Thailand over the next five years.

TikTok itself declined to comment on plans in Brazil.

Pecem Port is considered as the location of the data center because it is located close to the submarine cable landing station and the concentration of renewable power plants in the area.

Casa dos Ventos, which in 2022 partnered with TotalEnergies in its wind power portfolio, has submitted a request for a connection to Brazil's national power grid (ONS) for a data center project at Pecem. However, the request was initially rejected due to concerns regarding the stability of the electricity grid due to the high energy needs of the facility.

Brazil's Ministry of Mines and Energy is currently reviewing the possibility of increasing network capacity in order to accommodate data center projects in Pecem and other regions, according to two sources.

ByteDance could not be reached for comment, and the Ministry of Mines and Energy has not responded to a request for confirmation.

Meanwhile, Casa dos Ventos in a statement did not comment directly on talks with ByteDance, but stated that it was "committed to make Pecem port the center of technological innovation and energy transition."

"This company is developing Brazil's largest data center project as well as a green hydrogen project, all of which will be powered by renewable energy from its portfolio. In the development of the two projects, Casa dos Ventos is evaluating partnership opportunities with companies that can support its implementation," the company added.