LM Laís Martins On Tech Won't Save Us

“What we're seeing in Brazil is actually the opposite, right? Where in other countries, developers and technology companies look for the energy. In Brazil, the energy looks for the data centers.”

Tech Won't Save Us · Tech Strategy & Big Tech · October 2026

“What we're seeing in Brazil is actually the opposite, right? Where in other countries, developers and technology companies look for the energy. In Brazil, the energy looks for the data centers.” — Laís Martins, Tech Won't Save Us

Martins is explaining what makes Brazil's data center boom unusual. The country built a lot of renewable generation in the northeast without the transmission to move it, so wind and solar operators are regularly forced to switch off. Data centers are their fix, and she says her reporting found 60% of requests to install data centers in Brazil come from renewable energy companies.

Transcript

Tech Won't Save Us Around 12:29 into the episode
Laís Martins

That's a good question. So I would say we have pockets of resistance, like where data centers are coming up, communities are starting to mobilize. But it's already an evolution of what was happening before, because the first big example of resistance or pushback we have in Brazil is in the Northeast, the indigenous community against the TikTok data center. And that only happened because journalism covered the story, right? I did the story. So we were able to tell the community: look, a data center is coming. This is what it means. What we're seeing now is in places where there still hasn't been any media coverage, the community is already creating this shared understanding that, you know, this is something we should pay attention to. This is something we should mobilize. So, for example, there's a city here in the countryside of Sao Paulo State called Pinda Moña Angraba. The community there learned about the data center through a city hall announcement. There was a press release on the website, and they started mobilizing. They reached out to people who were doing this type of resistance in other places. And, you know, this has started to grow. In fact, they have a big event coming up this weekend, like to share what they have learned about it. So that's a case where journalism didn't really need to play a part in the sense that they weren't the ones to break the story. So this has happened in some other places. People reached out to me, like, oh, I'm seeing a data center in my city. What should I do? So I think it's become more spontaneous. What has happened on the national level, I think, is what I call like social media activism. You know, like people have realized data centers aren't the big promise that they were supposed to be. And again, this is really based on what is happening in the U.S. The news does reach Brazil. Like we, you know, have translated stories about people who have seen their utility bills rise or people whose water supply has changed colors because of data centers, the noise pollution, et cetera. This is reaching Brazil. So I think based on this, people have formed this understanding that data centers are something we should push back. So on the pop culture side of it, we're starting to see memes in Portuguese about data centers. And I think that's a good value of like, okay, people now understand, right? I would say it's still very limited to a progressive, environmentally concerned share of society, but it is happening. And I think people are starting to speak more and more in their friendly family circles about it. Yesterday, one of my friends said, oh, today my English class, my teacher, spoke about data centers, and she actually used one of your stories. You know, this is a person totally disconnected from me. So I think it goes to show that people are starting to create awareness. It's still nothing compared to what is happening in the US, but I also think that's explained by the fact that the data centers aren't really here yet. They're not fully ready. So I think once people start to see that, And I think it's very physical, right? Once you see it, you listen to it, I expect things to pick up a bit.

Paris Marx

Yeah, that makes a lot of sense. And I feel like, you know, when I look at Canada, where I am, there was not a lot of attention paid on data centers until we started to have a lot of proposals of like really big projects. And of course, we were also seeing what was happening in the United States. So there's certainly that kind of like learning from their experience and then knowing what is coming for us in a way that I'm sure is happening in Brazil as well. And so I want to move on to the model of data centers in Brazil, because to me, this feels really unique. Like it's not something that I feel like I have seen in other jurisdictions where it feels like the data centers in many cases are being proposed by renewable energy companies, right? And are very dependent on renewable power in the Northeast in particular. Can you talk to us about what we're seeing on that front in Brazil and how it might be different than in other jurisdictions?

Laís Martins

Yeah, I think that's definitely a very unique angle to Brazil. So what we're seeing in the rest of the world are technology companies struggling to find energy to supply their data centers, right? To the point where in the US, they're considering keeping coal mines running to supply the data centers. So like, you know, countries or companies and developers are going to absurd extents to justify this data center development. In Brazil, and I have to take a step back and not speak about data centers here for a moment. You know, Brazil is a very, our energy matrix is very clean compared to many countries around the world. 80% of our energy comes from clean sources. That includes hydropower, wind, and solar. This happened because many years ago, I would say like 10, 15, 20 years ago, there were lots of incentives for renewable energy generation. So companies got tax benefits. There was, you know, this big push to decarbonize Brazil, and it actually worked. But we didn't invest on the same level in distributing this energy. So what this means is we have lots of generation of renewable energy, but we're not able to spread this out into the country. Again, Brazil is a huge country, almost a continent in itself. So the challenges are very real. And this means that the energy is kind of stuck in this area where it's generated. Most of this energy is generated in the northeast of Brazil. Let me explain this because I also learned about this. If you have too much generation, it can overburn the grid. So like it can lead the grid to a tipping point where you have blackouts. And this actually happened to Brazil in 2023. It was a massive blackout. So today, what happens is renewable energy generators providers are forced to turn off generation because if they produce too much, it burns down the grid, right? So they're pissed off. Like, you know, they spend lots of money in installing generation, building wind turbines. Many of these companies are foreign, and then they have to turn off their generation. So they have been for the last many years pressuring the government to find a fix to their solution, to their problem. And the government has now found them. Data Center, right? Because data centers are the perfect clients. They're like renewable or they're reliable clients. They need energy 24/7. And their operation is projected for like 10, 15 years at least. So you know that you have a client who needs you desperately, right? I think more than any other industry, data centers really need energy. So what we're seeing in Brazil is actually the opposite, right? Where in other countries, developers and technology companies look for the energy. In Brazil, the energy looks for the data centers. So we tracked, and this is a special project we did at the Intercept with MongoBay and the support of the Pulitzer Center. We were able to track that 60% of the requests to install data centers in Brazil come from renewable energy companies. This means that renewable energy companies are transforming themselves. They're like changing their core businesses to also become tech companies. To me, this was like very mind-blowing at first because this means you're at the same time the energy provider and the consumer. Like, how does this declaration work, right? What actually happens in practice is they do all the bureaucratic clearing, they do the licensing, and then once the data center is ready, a tech company comes and takes over it. Many of these data centers will be AI data centers. Like the ones we've been able to track, the companies, they use this in the justification, saying that AI needs lots of energy and this is an opportunity for their businesses also to fix the curtailment problem. Curtailment is the technical name for this surplus of energy. But others will be just regular cloud or processing data centers. This is happening and it's happening fast. And the point I want to make is because the data center policy includes this obligation for companies to generate their own energy, renewable energy companies are in the best position to take up this market. So I expect this number I just mentioned, 60% to increase. Because also for tech companies, this is a really good arrangement. Like they don't have to figure out where the energy will come from because this is already solved. Like once they arrive, all the problems are actually cleared, right? Of course, in some places, water will still be a problem, but the energy is fixed. And we know that you're able to fix the water problem with more energy. And if you have like almost infinite energy, then you don't actually have a problem. So I think this kind of, you know, it's very complicated to explain. And when I mention this to people outside Brazil, they're like, yeah, but are you saying we shouldn't be using renewable energy for data centers? And that's not what I'm saying, but we're worried in Brazil, and this is like, of course, an individual concern, but I've heard the former environmental minister say this: that the demand from AI data centers justifies an increase in renewable energy production in Brazil. And we don't need more production. As I said, we have plenty of energy. We need to distribute it across the country because we still have also coal mines in Brazil. In the south of Brazil, we still have coal mines. It's a matter of like what are the priorities? And if this arrival of AI data centers using up this surplus of clean energy could risk our energy transition in Brazil. Like, does this mean we're still going to have to rely more on fossil fuels for the next few years because the data centers are using up the clean energy that we have? And then very important also to say that although renewable energy is clean and much, much better than fossil fuels, it's not free of impacts. And communities, especially in the northeast of Brazil, have for many years spoken about how they're being impacted. It's like a data center, it makes so much noise. Wind power, it impacts their livelihoods because they raise animals and their crops are also impacted. So I think we also have to think: is it worth it, like installing more renewable energy projects like wind turbines on top of these people for the energy to be used by AI data centers? Like, I think that's a discussion that needs to be made in the next few years. And right now, it's still not happening. I guess.

Paris Marx

Absolutely. And I think that you've given us so much to dig into there. Like a fantastic oversight of what is going on in Brazil and how it's like fascinating, but also a bit convoluted in different ways. And I want to dig into some different pieces of that. Like, obviously, the first thing that really stands out to me is how in Brazil, I feel like we have the opposite problem that we see in so many other parts of the world over seeing data centers be built out where there you have a surplus of renewable energy that is being used for data centers. And I feel like when we look at parts of the United States or say in Alberta up here in Canada, there's a surplus of natural gas and they are looking for markets for gas. And so data centers become, as you're saying, for the renewable operators down in Brazil, they become the reliable operators that are going to need a reliable, large supply of gas in order to power their data centers. And in Brazil, it's the renewables that are stepping in to do that, which seems like, I don't know, fascinating to see the difference in those two scenarios, you know.

Laís Martins

Yeah, yeah, I think it's super interesting. And in some ways, it complicates the discussion, right? Because it seems that like Brazilians don't really have a right to complain because we've had it so much better. But actually, it's still, you know, I'm not trying to classify who's like in a worse position or not, but it's still also very complicated. And I think the big discussion, it's not, it shouldn't be restricted to Brazil because, you know, it's in everyone's best interest that the world uses less fossil fuels. So I think we should think like, is this the best use that we want to make for Brazil's renewable energy? Being Brazil is such a big country and such a big neighbor also in the region. Like what happens in Brazil impacts the rest of the countries, although we're now surrounded by right-wing governments. That's also interesting. But it's a complicated discussion. And as you mentioned the natural gas sector, it's funny because after Lula sanctioned the law, they started pressuring the government because they also want in. Want a little share of this new market, right? So they're trying to change or like amend the law to include the possibility to use natural gas. Of course, again, the saying, you know, like you give the hand, they want the whole arm.

Paris Marx

Of course, yeah, it's not a surprise at all that they would do that. But it's so frustrating to see. I guess, I guess, the data centers up in the northeast will be powered by renewables, and then the ones like down in the south will be powered by gas or something like that.

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