ByteDance, the Chinese company behind TikTok, is exploring a significant investment in a data center in Brazil, according to three informed sources. The project aims to utilize the abundant wind energy available along Brazil’s northeast coast.

TikTok app logo is seen in this illustration taken, August 22, 2022.

The company is in discussions with Casa dos Ventos, a renewable energy firm, to establish the facility at the Pecem port complex in Ceara state, two sources said, speaking anonymously due to the confidential nature of the talks. The initiative aligns with Brazil’s efforts to become a global leader in the expanding data center sector, leveraging its substantial renewable energy resources.

One source indicated that the initial plan involves a 300-megawatt (MW) data center, with potential expansion to 900 MW in a later phase. Another source noted that the project’s total energy demand could reach approximately 1 gigawatt. This development would position Brazil as a key hub for ByteDance’s operations in the Western Hemisphere. Earlier this year, ByteDance announced a $8.8 billion investment in data centers in Thailand over five years.

TikTok chose not to comment on its plans in Brazil.

The Pecem location is attractive due to its proximity to submarine cable landing stations and the region’s concentration of renewable energy generation. Casa dos Ventos, which collaborated with TotalEnergies in 2022 on wind energy projects, has already sought grid connection for a data center in Pecem. However, Brazil’s national grid operator, ONS, initially rejected the request due to concerns about grid stability given the high energy demands of such facilities.

Brazil’s Mines and Energy Ministry is currently evaluating options to increase grid capacity for data center projects in Pecem and other regions, according to two sources. Neither TikTok nor the ministry provided immediate comments, and ByteDance was unavailable for response.

Casa dos Ventos declined to discuss specifics about the ByteDance negotiations but stated: “The company is committed to turning the Pecem port into a hub for technological innovation and energy transition.” It added: “The company is developing the country’s largest data center and green hydrogen project, which will be powered by renewable energy from its portfolio. In developing both projects, it is evaluating partnership opportunities with companies that can support their implementation.”