ByteDance Weighs a Bigger Second Data Center in Brazil

TikTok owner ByteDance is considering expanding a data-center project in northeastern Brazil, a move that would strengthen its standing as Latin America's leading builder of computing facilities, Bloomberg News reported on Friday.

The Beijing-based company is seeking a developer to oversee the second phase of a project at an industrial port in the state of Ceara, where it benefits from tax breaks for data exports. The expansion would be even larger than the $10 billion, 300-megawatt project currently under construction, also in Ceara.

ByteDance is also in early talks with developers for a similar-sized data center outside the Pecem port, according to people familiar with the matter.

The push builds on a much bigger bet. Last year ByteDance announced it would invest 200 billion reais — about $36 billion — in a data-center complex at the Pecem industrial port, to be built in phases, and construction of the first phase began in early 2026.

Brazil's data-center capacity has more than doubled since 2022 to surpass 1 gigawatt, according to industry group Brasscom, and the country is encouraging the buildout with tax breaks and low-cost power. Most Brazilian digital data is still processed abroad, leaving room for local capacity to grow.

ByteDance did not respond to a request for comment on the expansion plans. The company has not confirmed a timeline for the second phase, but the search for a developer suggests it is moving from planning to execution.

The move underlines a broader shift: the race to build computing capacity for AI is no longer confined to the United States and China. Brazil, with its cheap renewable power and government incentives, is becoming one of the most attractive places to build — and ByteDance wants to be its biggest tenant.

Sources

• Channel News Asia (Bloomberg News) — TikTok owner ByteDance weighs data center expansion in Brazil