TLDRs;
- TikTok’s $9.1B data center in Ceará will break ground six months after REDATA tax incentives take effect.
- The project, led by ByteDance and Casa dos Ventos, underscores Brazil’s growing tech and renewable integration.
- REDATA offers major tax breaks for clean energy-powered data centers built after January 2026.
- Brazil aims to position Ceará as a regional digital hub through large-scale infrastructure and green innovation.
Brazil is set to host one of Latin America’s most ambitious data infrastructure projects as TikTok’s parent company, ByteDance, partners with Brazilian renewable energy giant Casa dos Ventos to build a US$9.1 billion (50 billion reais) data center in the northeastern state of Ceará.
The facility will be located at the Pecém port complex, a major logistics and industrial hub, and construction is slated to begin within six months, according to Brazil’s Mines and Energy Minister, Alexandre Silveira.
The announcement positions Brazil as a strategic player in the global data economy, reflecting its growing importance as both a renewable energy leader and a digital infrastructure hotspot. The planned 300-megawatt data center will not only serve TikTok’s expanding user base in Latin America but could also strengthen Brazil’s position as a data storage and processing hub for the region.
Clean Energy at the Core
The project aligns neatly with Brazil’s new REDATA initiative, a sweeping tax program that incentivizes environmentally sustainable data centers. Effective January 1, 2026, REDATA suspends key taxes including the Import Tax (II), the Tax on Industrialized Products (IPI), and PIS/Cofins for qualifying Information and Communications Technology (ICT) imports.
Under REDATA, all participating data centers must commit to 100% clean energy use and achieve a Water Usage Effectiveness (WUE) below 0.05 liters per kilowatt-hour. Casa dos Ventos, best known for its vast wind power portfolio, plans to implement a closed-loop liquid cooling system, a design that could cut water consumption by up to 52%, according to a Microsoft study on similar cooling architectures.
Additionally, the program mandates 2% of project spending toward Research and Development (R&D), with a 20% reduction for initiatives based in Brazil’s Northeast, further aligning the TikTok-Casa dos Ventos partnership with local innovation incentives.
Timing and Economic Impact
The data center’s start date appears to be strategically aligned with the REDATA tax window, which remains open through December 31, 2026. That timeline gives the ByteDance-Casa dos Ventos team roughly one year to import and assemble the necessary high-tech infrastructure before operations begin in January 2027.
Beyond tax savings, Brazil’s National System Operator (ONS) has now approved the project after an earlier rejection over grid stability concerns. The clearance highlights both the scale of Casa dos Ventos’ ongoing 30-gigawatt renewable portfolio and the delicate balancing act of integrating massive digital facilities into Brazil’s power grid.
Economically, the data center is expected to create thousands of jobs in construction, operations, and local supply chains, while accelerating Ceará’s transformation into a digital-technology corridor. For the region’s industrial sector, the project signals an era where cloud computing, renewable energy, and infrastructure growth converge.
