TikTok Chooses Brazil for First Latin America Data Hub, Operational in 2027

TikTok announced this week that it will build its first data center in Latin America in Brazil, near the city of Fortaleza, representing a $3.8 billion investment that the company says will support its growing global infrastructure needs.

The facility is expected to be operational in 2027 and "will be powered exclusively by 100% renewable energy," the company said in a statement.

Brazilian President Luiz Inácio Lula da Silva attended the project's presentation along with Mônica Guise, TikTok's director of public policy, who said the initiative "reflects the company's commitment to Brazil, one of the world's most dynamic digital markets," as El Pais reports.

The data hub will use wind energy currently under development and employ a closed-loop water cooling system intended to avoid tapping the local electrical grid, the company said. TikTok estimates the construction and operation phases will create about 4,000 direct and indirect jobs. The Pecém port complex was chosen for its proximity to submarine cables that connect Brazil with international networks.

The project aligns with Lula's strategy to attract major technology investments and promote Brazil as a regional center for data hosting. Officials point to rising demand driven by artificial intelligence and cloud services, and highlight the country's clean-energy resources as a competitive advantage.

TikTok's announcement comes as Lula maintains diplomatic engagement with both the United States and China, his country's two largest trading partners. The president held a phone call with U.S. President Donald Trump one day before the announcement, thanking him for tariff reductions and urging further relief.

The planned facility, however, has drawn objections from members of the Anacé Indigenous community, who say the land is traditionally theirs and argue they were not consulted as required under international conventions. The company and its local partner, Casa dos Ventos, say they are complying with all regulatory requirements.

Chief Roberto, an Anacé leader, told El País the community remains concerned about the project's scale and potential effects. "We're not against progress if it respects the communities, nature, spirituality, [and] the autonomy of peoples," he said.

Brazil is currently home to nearly 200 data centers. Communications Minister Frederico de Siqueira has called the sector "the heart of the digital ecosystem," saying the government expects continued investment to expand national data storage and processing capacity.