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Brazil wind energy company receives approval for data center with TikTok's interest

Casa dos Ventos, a wind farm developer in Brazil's northeast, has received regulatory approval for a 300 megawatt project. The company had been in discussions with TikTok owner about a large data center investment.

Casa dos Ventos reported on Friday that Brazil's national grid operator has given the green light for the project to be connected at the Pecem Port complex in Ceara. The company said that the total investment for infrastructure and equipment in the data centers will be 50 billion reais (8.7 billion dollars).

A person with knowledge of the negotiations said that the regulatory approval would speed up the talks with major technology firms, including ByteDance the Chinese parent company for TikTok. First reported last month, the Chinese company is eyeing a major Brazilian investment in data centers with Casa dos Ventos. Casa dos Ventos has partnered with TotalEnergies for its wind energy portfolio by 2022.

After an initial rejection, a technical reassessment was conducted by the Brazilian Ministry of Mines and Energy and the national grid operator. This cleared the way for the project to be approved.

Casa dos Ventos has announced that it will now start construction during the second half of the year, and begin operation in the second semester 2027.

The company stated that its project would use closed-loop cooling systems to reduce water consumption, addressing concerns raised by some data center projects.

Casa dos Ventos estimated that the water consumption for the first phase will be about 0.045% the demand of residential housing in the nearby city of Caucaia.

(source: Reuters)