TikTok will invest more than 200 billion reais (US$37.7 billion) in the construction of a data centre in Brazil, marking the company’s first initiative in Latin America. The investment represents a significant step in the company’s commitment to Brazil, one of the world’s most active digital marketplaces.

TikTok plans collaborating with Omnia, a data centre developer, and Casa dos Ventos, one of Brazil’s biggest renewable energy providers, to build a data centre in Ceara, according to Monica Guise, head of public policy at TikTok Brazil. She noted that the facility, which will be built near Pecém’s industrial port, will be entirely powered by sustainable energy from wind energy parks.

“This is a historic investment for the company in Brazil,” Guise stated during a Ceará event with President Luiz Inacio Lula da Silva. “It’s a key step that reflects the company’s commitment with Brazil, one of the most dynamic digital markets in the world.”

Brazil is seen as the best-positioned and most appealing country in the region to capitalise on the global surge in data-centre investment to fuel artificial intelligence due to its abundance of renewable energy sources, an integrated national grid, and the region’s most high-speed fibre optic cable network. Pecem is located near a significant hub for underwater cables that land in Fortaleza, been adjacent to Fortaleza, a significant landing place for submarine internet cables, providing one of the quickest connections from Brazil to Europe and Africa, a strategic advantage for AI and cloud computing workloads.