While Americans turn against data centers, Brazil offers tax breaks and cheap power, representing a potential ‘release valve’ for U.S. constraints
Source: Fortune ·
The government is cutting taxes on data center equipment as Google, Amazon and Microsoft expand in a country already hungry for AI services.
From the source
With communities across the U.S. rebuffing data centers, there’s growing political pressure to curtail their construction. But thousands of miles away, South America’s biggest country is already a top AI market and making the buildout easier. Brazilians send 215 million messages to ChatGPT messages per day, according to OpenAI, making the country the chatbot maker’s third biggest market for weekly users after the U.S. and India. Google said it plans to double its cloud infrastructure there by 2030 in response to growing demand, and even signed a sponsorship deal with the Brazilian Football Confederation in March to integrate Gemini across the country’s men’s, women’s, and youth national teams. Other tech giants are investing too. Amazon Web Services has spent more than $3.8 billion on data center infrastructure there since 2011 and pledged another $1.8 billion through 2034, while Microsoft committed $2.7 billion to cloud and AI infrastructure over three years. Local demand, rather…