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Brazil Data Centre Plan Raises Water Concerns in Paracatu
A company wants to build a very large computer facility in Paracatu, Brazil.
These facilities use powerful computers to store and process information, including artificial-intelligence work.
They also need a lot of electricity and water to keep the computers cool.
Some people in Paracatu say their rivers, wells, and streams are already losing water.
The town has water conflicts caused by mining, farming, and dry conditions.
The proposed facility could use up to 1.2 million liters of water each day.
Atlas Renewable Energy says the plan is still being studied and that no technical decisions have been made.
Residents and local officials are concerned that they were not told about the project early enough.
The facility would receive power from a nearby solar complex and could be completed by 2030.
Atlas Renewable Energy is planning a 1-gigawatt data centre in Paracatu, Minas Gerais.
The project could consume up to 1.2 million liters of water daily at full capacity.
Local residents and officials say Paracatu already faces groundwater and surface-water restrictions.
Atlas says the project remains in a very preliminary study phase and no technical decisions have been made.
The planned facility is expected to operate in stages from December 2027, with completion targeted for 2030.
- Who
- Atlas Renewable Energy, owned by an arm of BlackRock, is planning the project; Paracatu residents, officials, farmers, and environmental representatives have raised concerns.
- What
- A proposed 1-gigawatt data centre for artificial-intelligence and cloud-computing operations.
- Where
- Paracatu, in Minas Gerais, Brazil, near Atlas’s existing solar-energy facilities.
- When
- Partial operations are planned to begin in December 2027, with completion by 2030; the project was reported on in May 2026.
- Why
- Atlas identifies the area’s solar resources and water supply as reasons for choosing Paracatu, while data centres require water for cooling and substantial electricity.
Local and environmental concerns
Company and industrial-development position
Water availability
Local and environmental concerns
Residents, water-basin representatives, farmers, and a former mayor say Paracatu already has restrictions and conflicts involving groundwater and surface water, with some springs and wells declining.
Company and industrial-development position
Atlas lists the area’s water supply among its reasons for selecting Paracatu and says project decisions will consider local impacts, resource availability, and socio-environmental feasibility.
Project transparency and status
Local and environmental concerns
Local officials and residents say they learned about the project through reporters and lacked time for proper public discussion before licensing decisions.
Company and industrial-development position
Atlas says the project is in a very preliminary study phase and that no technical decisions have been made.
Mining-related water impacts
Local and environmental concerns
Local quilombola communities and a lawsuit-related report associate mining with lowered water tables, altered territory, and polluted or diminished water resources.
Company and industrial-development position
Kinross says the Córrego Rico stream had environmental impacts before its operations, reports reductions in arsenic concentrations, and says about 95% of Paracatu’s public water comes from a watershed not affected by its operations.
Key facts
- Planned capacity
- 1 gigawatt
- Projected investment
- 35 billion Brazilian reais, reported as approximately $6.8 billion
- Estimated water use
- Up to 1.2 million liters per day at full capacity under the cited REDATA efficiency benchmark
- Annual water volume
- Approximately 438 million liters
- Planned construction
- Thirteen buildings containing supercomputers
- Power source
- The nearby Luiz Carlos Solar Complex, which has an installed capacity of 661.5 megawatts
- Planned timeline
- Partial operations from December 2027 and completion by July 2030
Quotes
Sebastiana Neto
President of the Alto da Colina Neighborhood Residents’ Association
“To say that there is plenty of water is controversial. We have many long-standing water conflicts in the municipality and the region.”
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“In the past, every little hole dug in the backyard would reveal water. But it’s all gone now, the water has disappeared.”
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Sources
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