Brazil's National Bank for Economic and Social Development (BNDES) is moving ahead with the creation of an investment fund focused on artificial intelligence and data centers, which is expected to be launched in early 2026.

As reported by Valor Econômico, the initiative was presented by the institution's director of planning and institutional relations, Nelson Barbosa, during an event held in Rio de Janeiro on Monday, December 1.

According to Barbosa, the amount of the contribution will vary between R$500 million and R$1 billion ($93.5m-187.5m). The official announcement is scheduled for the near future. The statement was made after the opening of the first Brazilian Economy Week, organized in partnership with the Celso Furtado International Policy Centre.

Barbosa commented on market expectations of a possible reduction in the Selic rate at the beginning of 2026. According to him, a downward cycle in the basic interest rate tends to boost medium and long-term investments.

The director pointed out that if the projections are confirmed and there is a downward movement from next year, the demand for this type of investment should grow significantly. He added that the bank currently has the resources to meet this demand under market conditions.

The new BNDES fund should adopt a model similar to that used in the vehicle for critical minerals, created in partnership with Vale and managed by a consortium including BB Asset, JGP, and ORE. This fund has R$500 million - divided equally between the development bank and the mining company - and aims to raise up to R$1 billion from other investors.

According to Barbosa, the structure usually includes an initial 25 percent stake from the BNDES and another investor, also with 25 percent. After that, a public notice is published to choose the manager.

Despite the new initiative, the BNDES is sticking to the targets already set for the coming years. The institution intends to raise approvals to two percent of GDP and disbursements to 1.5 percent of GDP by 2026, with the possibility of reaching two percent by 2028. Barbosa pointed out that the average disbursement period is around four years, which he said reflects the need for long-term financing in the economy.