Pennsylvania residents push back against booming data-center projects amid AI hype

Atlas Renewable Energy, an arm of BlackRock, has submitted a request to the Brazilian Energy Ministry to connect a 1-gigawatt AI data centre in Paracatu, Minas Gerais, to the national grid. The project, part of the global Stargate AI network, would exceed the total capacity of Brazil’s current data centres and is expected to start partial operations in December 2027, reaching full capacity by 2030. Residents, including city council president Manoel Alves and longtime locals such as Sebastiana Neto, say they learned of the plan only through media reports and fear it will exacerbate chronic water conflicts in the Cerrado, where springs are already over-exploited.

The site falls within the Córrego do Engenho Velho water-conflict area and is only a few kilometres from a zone with 100% groundwater restrictions. While Atlas plans to power the centre with its Luiz Carlos Solar Complex, the existing 661.5 MW capacity will likely need expansion. The controversy reflects Brazil’s broader push to attract AI data centres despite lacking specific environmental regulations for such projects.