Uruguay Data Centre Needs US$120M More Power

URUGUAY · DATA CENTRES

A new Uruguay data centre park needs US$120 million more in power works, state utility UTE says, El Observador reported on 21 October 2026. The money would pay for grid works, backup plants and wind farms missing from the original five-year plan.

For US readers, the Uruguay data centre shows what a large computing hub costs a small country in power infrastructure. Google already builds a data centre there, and the price it pays for electricity sets the benchmark for Solaria.

What UTE Wants for the Uruguay Data Centre

UTE, Uruguay’s state electricity company, estimates the extra US$120 million in an executive presentation it prepared for the presidency, according to El Observador. The planning and budget office, known as OPP, must approve the increase to UTE’s five-year budget.

The extra funds would let UTE bring forward investments that support the Uruguay data centre’s power demand. President Yamandú Orsi signed an agreement with Solaria on Wednesday 14 October, as the Uruguay data centre deal article on this site explains.

Solaria is a Spanish solar producer, and its chief executive is Arturo Díaz Tejero. The company’s total plan in Uruguay is worth US$11.65 billion, while Orsi’s public figure of US$5.7 billion excludes a large purchase of foreign equipment.

The Timeline Through 2030

In January 2027 UTE is due to start its tenders and bring forward by one year the works at two 500-kilovolt substations. The substations are at Cardal and Chamberlain.

In May 2027 Solaria takes its final investment decision, which leads to a conditional award and later to final contract closing. Land zoning approvals in Florida and Canelones, and environmental permits, are expected in the same month.

Solaria’s Cardal solar park, with 350 megawatts, should be finished in late 2029 or early 2030. The first phase of the Uruguay data centre project includes a 200-megawatt site in Canelones and is valued at US$4.65 billion.

Power Plants Missing From the Old Plan

UTE has committed to expand its Punta del Tigre station with a thermal plant of at least 100 megawatts as backup. It has also committed to one or more wind farms of up to 300 megawatts in total.

UTE’s original plan for 2025 to 2030 included no new wind farms or thermal plants at all. Thermal additions were pencilled in from 2032, and new wind was expected only after 2030, El Observador noted.

The paper adds that batteries could delay the need for new thermal generation by four years. That option would lower the fuel burned to cover the data centres.

Revenue, Price and Safeguards

UTE expects about US$16 million a year in revenue once the first 200 megawatts of demand are running. That estimate uses the sale price of energy and the toll for using its transmission lines.

The reference price is about US$86 per megawatt-hour, updated every year under a 2019 agreement. The government says the price will be similar to what Google pays for its data centre under construction in Uruguay.

All awards remain conditional on Solaria’s final investment decision and the signing of contracts. If Solaria ends its demand contract early, it faces a penalty of one to two years of supply.

The government plans three executive decrees. They cover a free-trade zone for the first data centre, direct energy purchases from Solaria, and billing through the free zone’s administrator.

What It Means for US Readers

The park fits a wider hunt, as US cloud and artificial intelligence firms seek large sites with cheap, clean power abroad. Uruguay offers solar and wind electricity, a stable government and a free-trade zone, and Google is already building there.

Investors who follow Spain’s Solaria or US data centre operators should note that the state is taking on extra spending. The final grid bill will shape the power price the park pays.

Americans considering a move to Uruguay may also see more construction jobs. Our earlier report on the deal said the government expects the first stage to need about 3,100 workers to 2029.

What Is Not Known

It is not yet known whether the OPP will approve the extra US$120 million, or how UTE will finance it. No UTE official is quoted by name on the figure.

Which companies will rent the data centre capacity has not been announced. The cooling method and the final terms of the confidential agreement are also still open.

What Comes Next

The OPP is expected to rule on UTE’s budget request for the Uruguay data centre before the January 2027 tenders begin. The government must also issue its three decrees before Solaria signs contracts.

Solaria’s investment decision in May 2027 is the next big test for the project. Until then, every award stays conditional.

More: Uruguay news in English, every day from The Rio Times.

Frequently Asked Questions

How much extra money does the Uruguay data centre need?

UTE says it needs an extra US$120 million to power the Uruguay data centre. The planning and budget office must approve the increase.

Who is Solaria?

Solaria is a Spanish solar power producer led by chief executive Arturo Díaz Tejero. Uruguay’s government signed the data centre agreement with it on 14 October.

Does Google have a data centre in Uruguay?

Yes, Google is building a data centre in the department of Canelones. The government says Solaria’s power price will be similar to Google’s.

When will the Uruguay data centre open?

Industry Minister Fernanda Cardona said the first phase should run by 2029 or 2030, as our earlier report noted. Solaria’s final investment decision comes in May 2027.

What is UTE?

UTE is Uruguay’s state-owned electricity company. It generates, transmits and sells most of the country’s power.

Sources: El Observador, 21 October 2026; MercoPress, 16 October 2026.

Editorial responsibility: Matthias Camenzind, Editor-in-Chief · Editorial standards · Report an error

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