Brazil could be a global AI hub with cheaper and faster hybrid energy

The global race for artificial intelligence and cloud computing no longer depends solely on chips, servers and processing power. Increasingly, it will be defined by a basic input: energy.

Data centers require large volumes of electricity, stable supply, price predictability and speed of expansion. In this new scenario, Brazil has a concrete opportunity to occupy a strategic position in the global digital economy, as long as it manages to combine its renewable advantages with modern regulation, battery storage and legal security.

According to the report "Renewables 24/7: the economics of firm solar and wind energy", by the International Renewable Energy Agency, hybrid systems that combine solar generation, wind energy and batteries are a competitive alternative to provide stable, continuous and high-quality electricity to intensive consumers, such as data centers, artificial intelligence loads, hospitals, safety-critical systems and advanced manufacturing.

The levelized cost of firm power from renewable battery systems has fallen from more than $100 per megawatt-hour (MWh) in 2020 to about $54 to $82/MWh in 2025 in regions of high solar irradiation and good wind corridors, according to Irena.

The projection is for further drops of approximately 30% by 2030 and 40% by 2035, which reinforces the competitiveness of these solutions compared to conventional generation alternatives.

In the Brazilian case, the examples modeled by Irena reinforce the country's potential.

In a solar project with batteries in Bahia, the cost of firm energy is estimated at US$65/MWh in 2025, with a projected drop to US$44/MWh in 2030. In a wind project with batteries in Rio Grande do Norte, the cost falls from US$88/MWh to US$73/MWh in the same period. These numbers show that Brazil not only has an abundance of renewable resources, but concrete conditions to offer firm, competitive and predictable energy in strategic regions for the expansion of the digital economy.

Implementation speed is another differentiator.

According to Irena, hybrid systems with solar, wind and batteries can be developed and commissioned within two years after obtaining licenses and connecting to the grid. This agility gains importance at a time when global electricity demand for data centers is growing by around 12% per year and is expected to more than double by 2030. For digital infrastructure operators, who need to expand capacity quickly, the energy delivery time becomes as important as its cost.

The pressure is already appearing in technology companies themselves. The expansion of artificial intelligence has increased electricity consumption, increased the need to build and operate data centers, and pressured corporate climate goals.

The case of Google is illustrative: even with relevant clean energy contracts and data centers that are more efficient than the sector average, the company recorded strong growth in energy consumption and emissions associated with the expansion of AI. This shows that the challenge is no longer just technological. The new frontier of artificial intelligence will also be energetic, environmental and territorial.

This is where Brazil can differentiate itself. In more mature markets, the expansion of data centers begins to face network bottlenecks, competition for firm energy, long connection times and greater pressure on emissions. In the country, on the other hand, there are still regions with high availability of renewable resources, space for new projects, potential for infrastructure expansion and conditions to offer clean energy on a scale. The country can enter this race not only as a consumer of technology, but as a supplier of one of the physical bases of the digital economy.

Brazil is already participating in this transformation with a relevant renewable base. According to data from Irena, the renewable capacity installed in the country reached 228.2 gigawatts (GW) in 2025, with 110.3 GW of hydroelectricity, 64.7 GW of solar energy, 34.9 GW of wind and 18.4 GW of bioenergy.

In the case of photovoltaic solar, the advance was especially significant: installed capacity increased from 8.4 GW in 2020 to 64.7 GW in 2025.

Despite meeting the conditions in strategic regions, the country needs to transform potential into viable projects, with grid connection, licensing, long-term contracts and regulatory clarity.

Legal security is an essential part of this equation. The Brazilian electricity sector has built, over decades, a reputation for respecting contracts, which has reduced investors' perception of risk and contributed to making the energy produced in the country more competitive.

However, this history is going through a moment of transition. The incorporation of a new reality, with distributed generation, hybrid systems and battery storage, has created areas that still need better regulatory fit. The challenge is to modernize the rules with clarity and dialogue, without compromising the trust necessary to attract long-term investments.

Batteries are fundamental in this transition because they transform the way renewable energy can be offered to intensive consumers. For a long time, the main criticism of solar and wind sources was associated with intermittency. Storage allows you to capture energy at times of highest generation and use it later, including at night or during peak times.

For data centers and AI operations, this means bringing renewable energy closer to a firm, predictable solution that supports high standards of continuity.

The Brazilian Northeast deserves special attention in this debate. The region combines abundant solar and wind resources, territorial availability and strategic position for new infrastructure projects. It is no coincidence that the Brazilian examples modeled by Irena are in Bahia and Rio Grande do Norte. With proper planning, network expansion and regulatory certainty, the region can become a relevant platform for data centers, artificial intelligence and new clean energy-intensive industrial chains.

It's not just about attracting data centers at any cost. The Brazilian opportunity is to offer an alternative aligned with the demands of the new economy and create an infrastructure around these data centers that will become the true legacy: competitive, firm, renewable energy available within deadlines compatible with the speed of digital transformation.

In a world where artificial intelligence puts pressure on power grids, emissions and climate targets, countries capable of delivering this infrastructure will have the advantage.

Brazil has a rare opportunity before it and needs to take advantage of it to stop being just a spectator and become a protagonist in one of the main economic and technological transformations of this century.

The articles published by CNN Infra seek to stimulate debate, reflection and shed light on views on the main challenges, problems and solutions faced by Brazil and other countries in the world. The texts published in this space do not necessarily reflect the opinion of CNN Brasil.

Source: CNN