Atlas Renewable Energy is planning a 1-gigawatt data center in the Paracatu municipality that exceeds the combined power capacity of all such facilities currently installed in Brazil.The project risks depleting fragile Cerrado springs in a municipality where around 80% of the territory faces water conflicts and demand already exceeds 100% of available groundwater reserves.Local authorities and residents say they were never consulted about the multi-billion-dollar investment, which was only revealed to them through inquiries from reporters.The project reflects a global trend of tech giants seeking out resource-rich countries like Brazil to power an increasingly water and energy intensive AI boom.
PARACATU, Brazil — As the president of Paracatu’s city council, Manoel Alves is used to being courted by companies and executives that want his blessing for new business. But on a Thursday afternoon in May 2026, he was upset talking on the phone about a data center planned for his city, about which he was informed by reporters.
“I just heard the data center construction will start in two months. Don’t you guys know about this either?” Alves asked someone at the mayor’s office. The answer from the other side of the call was “no”, the same received from all interviewees: Local authorities, business owners, farmers, and citizens.
