Microsoft opens two AI data centers in São Paulo

Microsoft has opened two cloud and artificial intelligence data centers in the state of São Paulo, now operational. The facilities are part of a R$ 14.7 billion investment plan in Brazil through 2027. The company's Brazil president, Priscyla Laham, emphasized AI's potential to boost Brazilian competitiveness.

On Wednesday, February 11, 2026, Microsoft announced the opening of two data centers focused on cloud and artificial intelligence in the state of São Paulo. The units are now operational and will include additional expansions under construction, as stated by Priscyla Laham, the company's president in Brazil, at the Microsoft AI Tour event in São Paulo.

These centers form part of a R$ 14.7 billion investment in cloud and AI infrastructure across the country, unveiled at the 2024 AI Tour. Laham stated that AI can make Brazil "more competitive, amplifying productivity, innovation, and placing the country in a prominent global role".

The company also provided an update on its training initiative. In 2024, Microsoft committed to training 5 million people in AI skills by 2027. Through the ConectAI program, 6.6 million Brazilians have started trainings, with 2.8 million completing their courses so far.

Brazil is viewed as an attractive location in Latin America for data centers, which house supercomputers to process vast amounts of information. In a recent report, BTG Pactual analysts noted that Brazil and Chile have the potential to become a "paradise" for the sector.

Supporting this is a Provisional Measure establishing the Redata, a special taxation regime for data centers, signed in September 2025 and currently under discussion in the Chamber of Deputies. The measure sets federal tax rates to zero on products purchased for building these centers in Brazil.

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President Trump shakes hands with tech CEOs signing the Ratepayer Protection Pledge at the White House, with AI data centers symbolized in the background.
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Tech giants sign White House pledge to cover AI data center power costs amid backlash

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On March 4, 2026, leading tech firms including Amazon, Google, Meta, Microsoft, OpenAI, Oracle, and xAI signed the non-binding Ratepayer Protection Pledge at the White House, committing to fund new power generation and infrastructure for AI data centers to shield consumers from rising electricity bills. President Trump hailed it as a 'historic win,' but critics question its enforceability amid growing environmental and economic concerns.

The Chamber of Deputies' approval of Redata could boost data center installations in Brazil, but the electricity distribution infrastructure poses a major hurdle. Sector executives note that, despite abundant generated energy, grid connections are delayed, particularly in the Southeast. Companies like Ascenty are optimistic about fiscal incentives to attract big techs.

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Microsoft has introduced Maia 200, a powerful new accelerator designed to advance large-scale AI capabilities. The technology aims to strengthen Azure's position in the competitive AI landscape. The announcement highlights ongoing efforts to enhance cloud-based AI infrastructure.

Abhishek Singh, CEO of the IndiaAI Mission, has outlined a focused strategy for India's AI development, emphasizing practical, population-scale models over the global race for artificial general intelligence. In an interview, he highlighted India's potential as the world's inference capital and preparations for the upcoming AI Impact Summit in New Delhi. The approach prioritizes sovereign AI solutions tailored to Indian challenges in sectors like healthcare and agriculture.

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Heads of state and tech leaders from over 80 countries gathered in New Delhi to assess artificial intelligence's impact on humanity. The summit, convened by Narendra Modi, raised concerns about AI risks spiraling out of control. The New Delhi Declaration was signed after negotiations extended by one day.

Elon Musk announced on February 2, 2026, that his SpaceX company has acquired his AI startup xAI, aiming to build orbital data centers to meet surging electricity demands for artificial intelligence. The merger integrates AI, rockets, and satellite technology to create a vertically integrated innovation engine. Musk envisions this enabling advancements like Moon bases and Mars colonization.

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Data centres powering artificial intelligence are causing land surface temperatures to rise by an average of 2°C near their locations, with extremes reaching 9.1°C, according to researchers at the University of Cambridge. The heat effects extend up to 10 kilometres away, potentially impacting more than 340 million people worldwide. The findings come from a study analysing satellite data over the past two decades.

 

 

 

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