❯ ByteDance seeks a developer for a second Pecém data center phase that could exceed the first phase now under construction

The company is still looking for a developerOn November 6, Bloomberg reported, citing people familiar with the matter, that ByteDance is considering expanding its data center at Brazil’s Port of Pecém in Ceará and is looking for a developer. Those people said the expansion could exceed the first phase now under construction, which Bloomberg puts at about $10 billion and 300 megawatts. The budget, power requirements, and construction date for the second phase remain open.

The first phase is under way with a wind power dealByteDance announced a phased development at the port last year and construction began early this year. In May, Reuters reported that developer Omnia signed a 20-year power supply deal worth about $2 billion with renewable generator Casa dos Ventos, drawing on wind farms in northeastern Brazil. Omnia described the first phase as 200 MW of IT capacity with electricity demand of about 300 MW. It expects operations to start in the third quarter of 2027 and expand through 2029.

Why build at a portNearby Fortaleza is a landing point and hub for subsea cables that can carry data to other markets, and Ceará and neighboring states have substantial wind resources. The port’s tax treatment also depends on exporting data. Which customers the site serves and how it sends their data therefore matter to its eligibility.

An off-port site could serve Brazilian customersBloomberg also reported early talks about a similarly sized data center outside the port for customers in Brazil. That proposal is separate from the second phase at Pecém and remains at an early stage. If both advance, ByteDance could use different facilities for cross-border and domestic services, with each needing its own development and power arrangements.

▮ SIGNALPecém brings electricity, international connectivity, and tax benefits for data exports together. The best site for serving Brazilian customers may be somewhere else.