Brazil's Elea Data Centers inks contract with WEG for AI power infra supply

Brazil’s Elea Data Centers signed a contract with local electrical equipment manufacturer WEG for the purchase of transformers to power the hyperscale-oriented site Elea is developing in São Paulo. 

Initially, there will be four 12.5MW transformers, totaling 50MW of high-voltage datacenter capacity in the greater São Paulo area, Elea’s president Alessandro Lombardi told BNamericas. 

The equipment will be used to modernize and upgrade an on-site power substation, he said.

The value of the contract was not disclosed but it falls under the first phase of Elea’s estimated US$300mn investment in its artificial intelligence datacenter project. 

Transformers provide reliable, uninterrupted power for high-demand AI equipment and regulate voltage, increasing or decreasing it according to the power requirements, which tends to reduce losses during distribution and improve system efficiency. 

The transformers are being manufactured at WEG's facilities in Gravataí, Rio Grande do Sul state, and will be delivered in mid-2025.

The geographic proximity between the Brazilian companies is seen as an additional factor for efficient logistics, to reduce costs and cut the carbon footprint related to the transportation of equipment.

The agreement with WEG is part of a broader “umbrella” contract that should extend to the supply of equipment for other Elea datacenters and projects, added Lombardi.

He also said Elea, a company with investment from Goldman Sachs but majority Brazilian-owned, seeks to foster local industry and supply chains.

Vertiv

The WEG partnership follows a contract signed by Elea with Vertiv to acquire liquid cooling equipment for AI applications at its facilities in São Paulo.

The cooling distribution units (CDUs) bought from the US firm are said to be the first to be adopted by a Latin American commercial datacenter company. They are aimed at meeting the fast-growing demand for hyperscale AI applications.

The CDU systems are designed to offer energy consumption that is 27% lower than traditional cooling methods, targeting a power usage effectiveness (PUE) rate as low as 1.1

According to Elea, both investments are in line with its growth strategy to meet the rapid expansion of Brazil's digital infrastructure sector, while seeking to position the country as a major player in the global AI market.