ByteDance-owned TikTok reportedly plans to invest $37.7 billion to construct a data centre in Brazil, representing its first project in Latin America.

Bloomberg reported the data centre will be developed near the industrial port of Pecem, in the northeastern state of Ceara, in partnership with data centre developer Omnia and renewable energy company Casa dos Ventos.

The news agency explained the Pecem site is close to Fortaleza, a major hub for submarine cables, providing one of the shortest digital routes from Brazil to Europe and Africa.

Bloomberg cited a TikTok representative who stated the project will rely on clean energy from wind energy parks.

The news agency noted Brazil President Luiz Inacio Lula da Silva has made attracting data centre investments a national priority to fuel AI growth.

In September, Lula signed a provisional measure offering incentives such as tax exemptions on imported equipment for companies building data centres in Brazil.

Lula told Bloomberg the Pecem data centre could serve as an example for additional data centres throughout the country.

In September, US President Donald Trump signed an executive order to split off TikTok from ByteDance, allowing US investors to hold a majority stake in the new entity, but the deal remains in limbo.

Bloomberg reported the government in China agreed a month ago to work with the Trump administration, but has yet to openly support the deal.