Data center project threatens water security for 100,000 Brazilians without consultation

Brazilian AI data center project in water-stressed region lacks community input, risking food security

Atlas Renewable Energy, a BlackRock-owned entity, plans a 1-gigawatt data center in Paracatu, Brazil—a municipality of 100,000 people where 80% of territory faces water conflicts and groundwater demand exceeds 100% of available reserves. Local residents, farmers, and businesses received no formal consultation before the project’s announcement, though authorities were informed via reporter inquiries. The facility, part of a U.S.-backed global AI network, would exceed Brazil’s current data center capacity (800 megawatts) and begin partial operations in December 2027.

This project intensifies acute water scarcity for a community already struggling to meet basic needs. With Paracatu situated in Brazil’s primary water reservoir biome, the infrastructure risks triggering food insecurity and health crises as groundwater resources dwindle. The lack of national environmental regulations for such facilities further undermines local resilience.

The source confirms the project remains in a 'very preliminary study phase' with no technical decisions finalized—meaning implementation timelines are subject to change. This brief reflects the source’s stated limitations: the project’s impact on water security is currently theoretical, not operational. The detail sits with the source.

Source: Mongabay