Microsoft will spend $2.7 billion on cloud and AI infrastructure in Brazil

Microsoft will contribute to the development of Brazil’s cloud and AI infrastructure by expanding its own data centers in the country. According to Datacenter Dynamics, the company announced its intention to spend $2.7 billion on related projects over three years. In particular, the state of Sao Paulo plans to expand cloud infrastructure across several data center campuses. In Brazil, the company has a cloud region Brazil South in the state of Sao Paulo (put into operation in 2014), and in 2020 the IT giant launched Brazil Southeast in Rio de Janeiro.

Microsoft CEO Satia Nadella has already expressed support for the country’s AI transformation and said that the company’s new investments in clouds and AI will provide access to modern technologies, and training programs will contribute to the acquisition of new skills that will become a driver of prosperity for people and the economy of Brazil in the era of AI.

According to the company, this is the largest single investment in the country in the company’s history. Among other things, it is planned to train 5 million people in AI skills over the next three years.

Back in 2014, Microsoft launched the São Paulo Azure cloud region in the Brazilian municipality of Campinas, and in 2021 it was expanded to three availability zones. In 2023, information appeared that the company was additionally working on facilities in the cities of Hortolândia and Hortolândia in the state of São Paulo. Also in 2020, the intention to open a second cloud region in Rio de Janeiro was announced, but the project was later reclassified as a “reserved access region.”

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In 2023, Microsoft signed a contract with AES Brasil for the supply of renewable energy for a period of 15 years, energy intake is provided from the Cajuína Wind Complex wind farm, located in the state of Rio Grande do Norte. Commercial operation began in July 2024.

Microsoft is not the only one investing in Brazilian digital infrastructure. A couple of weeks ago, information appeared that AWS was preparing to allocate $1.8 billion for data center expansion in the country, and Scala Data Centers would build a 4.75 data center megacampus in the Brazilian state of Rio Grande do Sul GW.