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Brazil's $9.5B TikTok Data Center Sparks Water Rights Battle

Financial Times Companies •
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China's ByteDance is building its first Latin American data center in Brazil's north-east, a $9.5 billion project that has become entangled in environmental and indigenous rights disputes. The TikTok parent company plans to lease the facility from Omnia, which promises 100% renewable energy from new wind farms. The 300-megawatt operation represents China's strategic push into Brazil's growing AI infrastructure market.

Local indigenous groups, particularly the Anacé people, have protested the development, citing concerns about water usage in an already drought-prone region. While Omnia claims the center will use only 30,000 liters daily through a closed-loop cooling system, community leaders argue this is excessive when residents face regular water shortages. The project's location near Fortaleza's subsea internet cables and eligibility for export tax incentives make it strategically valuable for both parties.

Federal prosecutors have questioned the environmental licensing process, commissioning technical reports that suggest the project's water consumption estimates may be underestimated. Omnia has pushed back strongly against these findings, defending its consultation process and environmental safeguards. As Brazil seeks to leverage its renewable energy surplus to attract AI infrastructure investment, this dispute highlights the growing tension between technological advancement and local resource rights in the global data center boom.