Digital infrastructure companies secure 228 megawatts of power transmission capacity in the state of São Paulo, outbidding competitors in a pioneering federal government auction.
The advancement of the energy transition and digitization in Brazil reached a decisive milestone with the conclusion of a competitive process led by the Ministry of Mines and Energy. Three technology companies secured all 228 megawatts made available for connection to the power grid in the state of São Paulo.
The competitive process, recently concluded, reflects the insatiable appetite for clean energy and robust infrastructure required by modern data centers. With the surge in electricity demand driven by the growth of cloud computing and artificial intelligence, securing power supply has become a key strategic asset for global investors in the country.
Expansion and new technology hubs
The energy capacity blocks awarded will be directed to strategic initiatives located in the interior of São Paulo. Among the winners are projects linked to CloudHQ, a global developer of digital infrastructure, and Digital DC Brasil, an operator known commercially as NextStream. The projects include facilities planned for the municipality of Paulínia.
This allocation took place during the first cycle of the National Policy for Access to the Transmission System, managed in conjunction with the National Electric System Operator (ONS). The auction tested the technical capacity of São Paulo’s energy grid against seven competitors seeking a total volume exceeding 400 megawatts.
The new regulatory dynamic provides predictability and security for technology investors who require solid guarantees of power supply to make digital infrastructure projects in Brazil viable.
Ending the historical backlog and the future of the sector
The government initiative replaces the old continuous processing model, known as the “open queue,” which accumulated speculative requests and stalled the planning of the National Interconnected System. Now, periodic technical assessment windows allow for the precise dimensioning of energy flow and the expansion of the transmission grid.
Experts point out that unlocking new transmission auctions will be fundamental to keeping pace with the regulatory momentum driven by Redata, the recent special tax regime aimed at the sector. With two review seasons scheduled annually starting in 2027, the challenge for authorities will be to expand transmission line capacity to avoid bottlenecks in power supply to the technology industry.
