Rio Eyes Saudi Investment in Data Centers, Including Underwater Options

Rio de Janeiro’s government is courting Saudi investments to develop a data center hub, including pioneering underwater facilities.

At the FII Priority, dubbed the “Davos of the Desert,” officials unveiled their proposals.

Mayor Eduardo Paes highlighted Rio’s emphasis on data centers, pointing out the city’s business-friendly environment and incentives.

“Rio is ideal for data centers due to its clean energy. We are working to become the innovation and technology leader in Latin America,” Paes explained.

Yasir Al-Rumayyan, who manages Saudi Arabia’s $925 billion Public Investment Fund, emphasized the increasing energy needs due to artificial intelligence.

AI might raise global energy usage by 3% to 6% yearly. Notably, ChatGPT uses as much energy daily as 280,000 homes in California each year.

The mayor discussed Rio’s coastal advantage for deploying underwater data centers, which could notably reduce energy consumption.

Cooling comprises 40% of data center energy needs. A Microsoft study found these submerged centers had 20% fewer server failures than terrestrial ones.

They also offer lower latency and enhanced security.

Rio Eyes Saudi Investment in Data Centers

However, environmental regulations in Brazil are a hurdle. Paes stressed the necessity of investor dialogue to overcome these challenges.

“We are prepared to work with investors to realize these innovative data centers in Rio,” he declared.

Rio’s role on the global stage is expanding. “While São Paulo leads economically, Rio captures Brazil’s identity, enhancing our global appeal,” Paes noted.

He also commended President Luiz Inácio Lula da Silva for attracting Saudi investment.

“Hosting the ‘Davos of the Desert’ signals progress, and we’re determined to secure investments for Rio,” Paes stated.

Paes praised Rio’s strong track record in Public-Private Partnerships and concessions.

“Despite national challenges, Rio’s GDP has grown faster than Brazil’s overall, and our infrastructure is advancing.

With favorable incentives, Rio’s prospects are promising,” he concluded.

As municipal elections loom, Paes remains committed to governance and investment over politics. “Our focus is on governance and boosting Rio’s investment appeal,” he affirmed.