The Brazilian city of Eldorado do Sul, in Rio Grande do Sul state, has passed legislation to allow the construction of Scala Data Centers’ AI City.

First reported by DCD Brazil, the legislation will change urban zoning and streamline procedures for the operators ‘mega complex.’ The urban zoning perimeter will be expanded to include the proposed site.

The municipal bill was approved on December 3 and signed into law on December 18.

Dubbed the Scala AI City, the project was first announced in September this year. It will see an initial 3 billion real investment (US$490m) and will offer 54MW of capacity, generating around 3,000 indirect and direct jobs.

Investment in the project could reach $50 billion and the entire campus is expected to have a capacity of 4.75GW at full build-out, once all phases are complete.

The installation of the campus is set to have positive economic impacts on the state, for example in the renewable energy sector.

“This can further accelerate the implementation of wind farms, which is also important for the state, because it is an investment that will take place here to generate energy and meet demand that will ramp up with the expansion of Scala’s project,” said Ernani Polo, the state’s secretary of economic development.

The Rio Grande do Sul government added there are companies in the sector showing interest in supplying renewable energy.

In August, Scala announced an investment in Serena Energia for the supply of wind sources for the company’s projects.

Founded in 2020 after DigitalBridge acquired facilities from Brazilian IT firm UOL Diveo, Scala has invested around $1.6bn in hyperscale data centers across Brazil, Chile, Mexico, and Colombia.

The company secured $500 million in financing earlier this year.