Uruguay says the $5.7 billion agreement with Solaria is the largest investment in the country’s history
The project will combine 500 MW of data center capacity with 350 MW of solar power generation in its first phase
State-owned utility UTE will procure solar electricity under a 40-year PPA and provide land for the solar plants
Uruguay has announced a $5.7 billion investment agreement with Spanish renewable energy company Solaria Energía y Medio Ambiente to develop a solar-powered data center campus with up to 500 MW of capacity. The government described it as the largest investment in the country’s history.
Under the agreement reached, Solaria will develop and operate the free trade zone. It will provide land, infrastructure, and services to major data center operators. Solaria will also deploy up to 350 MW of solar PV capacity to power the campus.
Phase I of the project will include 200 MW of data center capacity and 350 MW of solar power generation. Phase II will add another 300 MW of data center capacity, with the possibility of expanding solar generation. The facilities will be spread across the departments of Canelones, San José, and Florida.
Solar power generation will be concentrated in Florida, while the data centers will be located in Canelones in Phase I and San José in Phase II. The project will also create more than 3,000 jobs under Phase I to be completed in 2029 or 2030.
Uruguay’s utility, the National Administration of Power Plants and Electrical Transmissions (UTE), will provide land for the solar PV plants and procure the energy produced under a 40-year power purchase agreement (PPA) with Solaria.
Additionally, Solaria will develop the necessary electrical installations to connect the campus to a 500 kV transmission grid.
For Solaria, the agreement will strengthen its Powered Land model under which it offers land with guaranteed grid connection to data center developers. It generates revenue from site development and supplying renewable electricity. The model falls under Solaria’s infrastructure business, where sales rose 355% in H1 2026 (see Solaria Energia’s Profit Rises 52% To €125M In H1 2026).
Uruguay’s Minister of Industry, Energy and Mining, Fernanda Cardona, described the project as a national initiative, citing its scale, potential to create high-quality jobs, and ability to attract foreign investment.
Currently, state-owned telecommunications company Antel operates a data center in Pando, which it is relocating to Canelones. Google is also developing a data center at Parque de las Ciencias in Canelones.
“This will generate a value chain, jobs, and knowledge for our entire population, and will reaffirm Uruguay as a digital hub, combining renewable energy with network capabilities, human talent, and the digital economy,” said Cardona.
Uruguay targets to add 500 MW to 600 MW of new solar PV capacity by 2030. As per the International Renewable Energy Agency, the country had 339 MW installed solar PV capacity at the end of 2025.
