• Atlas is studying a 1GW data centre in Paracatu, where large parts of the municipality already face restrictions and conflicts over water use
  • The company says the project remains at an early study stage and has not disclosed a final cooling design, water source or expected water demand

The fact

Atlas Renewable Energy is studying a 1GW data centre in Paracatu, Minas Gerais, where existing pressure on water supplies is raising questions about the proposed development. A joint investigation by Mongabay and Intercept Brasil found that the planned site lies on the edge of a designated water-conflict area and about 6.4 kilometres from an area with groundwater restrictions. Local officials and residents interviewed by the publications said they had not been consulted about the project.

Atlas said the proposal remains at a very preliminary stage and that no technical decisions have been made. The company has not disclosed how much water the data centre would need, where that water would come from or what cooling system it would use. Atlas already operates solar generation in Paracatu. Earlier reporting found that one of its local plants had to cut output by nearly 40% in 2025 because of electricity-system constraints. A large nearby data centre could create additional demand for that generation, but the project is not yet an operating facility.

The assessment

Paracatu shows why having electricity available is only one part of choosing a data-centre site. Atlas has a clear reason to put a large power user near its solar assets, especially when some of that generation has been curtailed. But the data centre also needs a cooling plan that works in a place where water is already under pressure.

It is too early to say how much water the project would use because Atlas has not chosen a final design. It would also be too early to assume that water will not be a problem. The company still needs to show how the facility would be cooled, where any water would come from and what approvals would be required.

For BTW readers, the 1GW power plan does not make Paracatu a ready data-centre site on its own. The project will be easier to judge once Atlas explains how it plans to cool the facility and whether that plan can work with the water available locally.

What to watch

Watch for Atlas to publish a cooling design, water source and project-specific water estimate, along with any environmental or water-use applications. Local consultation and formal approvals would show whether the proposal is moving beyond an early study and whether its power advantage can be matched by a workable water plan.