Environmental Impact of Data Centers in Brazil: A Quantitative Analysis of Energy and Water Consumption in the Context of the REDATA Policy Framework

The rapid expansion of data center infrastructure in Brazil, fueled by accelerating demands from artificial intelligence and cloud computing, has intensified discussions around environmental sustainability. This paper offers a comprehensive quantitative analysis of energy and water consumption by data centers in Brazil, drawing upon recent industry data and the newly implemented REDATA policy framework. Contrary to common public perception, findings indicate that in 2024, data centers accounted for only 1.7% of national electricity consumption (11.3 TWh) and 0.003% of water consumption (2 billion liters). Projections suggest these figures may rise modestly to 3.6% and 0.008%, respectively, by 2029. The study highlights that modern closed-loop cooling systems have transformed water consumption patterns, with 80% of new facilities employing designs that require only initial filling (approximately 23,000 L/MW) and minimal annual replenishment (around 10%). Furthermore, the REDATA policy (MP 1.318/2025) introduces strict sustainability criteria, mandating 100% renewable energy sourcing and limiting Water Usage Effectiveness (WUE) to ≤0.05 L/kWh. Comparative analysis reveals that data centers are substantially less resource-intensive than traditional industrial sectors such as metallurgy industry (7.1% of energy use), paper and pulp industry (3.2%), and chemical industry, which consumes 120× more water. Overall, this study argues that, when evaluated within Brazil’s predominantly renewable energy matrix and its rigorous regulatory environment, data centers constitute a low-impact industrial activity that plays a strategic role in digital sovereignty and sustainable economic development.