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Brazil is positioning itself as a green-energy hub for the AI boom, but a massive new data center project tied to TikTok’s parent company, ByteDance, is facing fierce backlash.

A R$50bn ($9.5bn) facility in Caucaia would be ByteDance’s first Latin American data centre and one of the continent’s largest, powered by new wind farms. Supporters say it could bring jobs, foreign investment, and help absorb Brazil’s surplus renewable electricity.

But local Indigenous Anacé people communities and environmental groups argue the project was rushed through licensing and threatens scarce water and electricity resources in a drought-prone region. Critics also question whether such projects create enough lasting economic benefits.

The controversy has become a test case for Brazil: can it attract huge AI infrastructure investments while protecting local communities and natural resources?