The development will unfold across two phases in the departments of Canelones, San José, and Florida. Phase one encompasses 200 megawatts of data center capacity and 350 megawatts of solar generation, with completion targeted for 2029. Phase two will add 300 megawatts of data center capacity, with potential for additional solar expansion. Construction during the first phase will create 3,100 temporary jobs, while full operation will support 1,500 permanent positions, according to government projections.
Solaria will develop and operate the free-trade zone, providing land, infrastructure and services to host large-scale operators, subject to regulatory approvals. The company will construct one or two photovoltaic plants on land provided by state utility UTE, which will purchase the electricity output under a power purchase agreement potentially extending 40 years. The arrangement coordinates solar plant commissioning with data center deployment, though the announced structure routes generation through UTE rather than direct supply.
Minister of Industry, Energy and Mining Fernanda Cardona emphasized the investment’s economic impact will include general transfers affecting GDP directly. She noted the project nearly doubles the public-private investment previously deployed for wind generation in Uruguay. The initiative leverages Uruguay’s nearly 100 percent renewable electricity matrix, which Orsi identified as a decisive factor for international investors seeking sustainable digital infrastructure.
Solaria has operated in Uruguay for nearly a decade, managing solar plants in Young and Mercedes that sell power to UTE. The data center agreement extends the company’s business model beyond electricity generation into digital infrastructure development and long-term service provision. The company reported 52 percent profit growth in its most recent half-year results, driven partly by new data center infrastructure contracts totaling 438 megawatts across its portfolio.
This article was curated and published as part of our South American energy market coverage.
