The Take

Why is drought-hit Brazil saying yes to AI data centers?

Jul 7, 2025
Laís Martins, a Brazilian journalist from Sao Paulo covering technology for The Intercept Brazil, dives deep into the controversial rise of AI data centers in drought-hit regions. She highlights the struggle of communities like Calcaia, weighing potential job opportunities against severe environmental costs. The discussion addresses the dismal job creation predictions, the immense water consumption, and the Brazilian government's lack of environmental oversight. Laís emphasizes the urgent need for transparency and informed community dialogue in these pivotal decisions.
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INSIGHT

AI Centers Demand Water, Brazil Droughts

  • AI data centers require huge infrastructure, consuming significant energy and fresh water resources.
  • Brazil is eager to host such centers, though its rivers are suffering droughts, creating a conflict of interest.
INSIGHT

The Hidden Environmental and Economic Costs of AI Data Centers in Drought-Stricken Brazil

AI data centers require enormous amounts of energy and water, which poses a critical problem for drought-affected regions in Brazil like Calcaia. Despite government incentives and big tech companies like TikTok backing data center projects promising jobs and economic growth, the reality is far bleaker. Local jobs are few once construction is finished, and the environmental toll includes significant water consumption that exacerbates existing water scarcity, along with increased energy costs and noise pollution.

Moreover, there's a troubling lack of transparency about where water for cooling these centers will come from, with local populations uninformed about the true impact. This situation is complicated by the Brazilian government's apparent blind spot on environmental oversight, as the environmental ministry has been excluded from policy discussions. Laís Martins argues that communities deserve access to detailed environmental data to make informed decisions amid this digital gold rush.

ANECDOTE

TikTok’s Data Center Choice in Calcaia

  • Calcaia is a hot, coastal Brazilian city affected by droughts and violent conflicts, chosen for a major data center.
  • TikTok backs a data center there, attracted by the strategic submarine internet cables in the northeast of Brazil.
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