Brazilian telecom and data center provider V.tal has signed a Power Purchase Agreement to procure solar power.

The company this week signed a long-term deal with Atlas Renewable Energy to purchase energy from the Draco Solar Plant in Arinos, Brazil.

V.tal will offtake 710GWh per year from the 579MW solar plant to power its data center portfolio across Brazil and the current and future data center parks owned by Tecto, the company's recently-established data center business unit.

The solar project is currently in the preconstruction phase and is expected to be operational in 2026. Further details on the agreement were not disclosed.

“Our agreement with V.tal solidifies our footprint in Latin America’s data center sector. But it is only the first step; we look forward to supporting the operations of digital infrastructure companies throughout the region, helping drive growth powered by clean energy, as well as competitiveness in the information and communications technology industry,” Carlos Barrera, CEO of Atlas, said.

V.tal launched Tecto in October in unison with a $1 billion investment plan to expand its data center footprint in Brazil. This will be funded by shareholder BTG Pactual, as well as Singapore’s GIC and Canada’s CPP Investments.

In Brazil, V.tal currently has two live data centers in Fortaleza and one in Rio de Janeiro. The company is also planning a new facility in Porto Alegre, Rio Grande do Sul. Internationally, the company has a site in Barranquilla, Colombia, comprising two operational data centers.

Atlas is a renewable energy firm founded in 2017. It operates throughout the Americas with an asset portfolio of 8.4GW, including 2.5GW in advanced development and 3.6GW of operational capacity.