Axia Energia's Strategic Expansion in Brazil's Energy and Digital Infrastructure

Brazil's energy and digital infrastructure sectors are undergoing a transformative phase, driven by ambitious government-led auctions and surging demand for renewable energy and data center capacity. At the forefront of this evolution is Axia Energia, the rebranded successor to Eletrobras, which is leveraging its legacy as Brazil's largest power transmitter to secure a dominant position in the 2026 power-sector auctions and the emerging data center boom in regions like Sergipe. By aligning its energy infrastructure projects with digital growth, Axia is uniquely positioned to capitalize on a projected R$148 billion in infrastructure investments for 2026, including US$4.7 billion earmarked for transmission auctions alone.

A Strategic Powerhouse in the 2026 Auctions

The 2026 power-sector auctions represent a critical inflection point for Brazil's energy landscape, with over 40 projects at an advanced stage of development. Axia Energia has signaled its intent to lead in these auctions, particularly in high-capital expenditure (capex) transmission-line projects. According to CEO Ivan Monteiro, the company is actively exploring partnerships to secure these projects, a strategy that underscores its commitment to scaling infrastructure while mitigating financial risk. This approach is already paying dividends: in the 2025 auctions, Axia secured high-value projects in Minas Gerais and Rio Grande do Norte, demonstrating its competitive edge.

The March 2026 hydroelectric expansion auction is another focal point for Axia. By expanding hydro capacity-a cornerstone of Brazil's renewable energy mix-the company is not only addressing energy security but also aligning with global decarbonization trends. Additionally, Axia is exploring battery storage integration, a move that positions it to meet growing demand for grid stability in a renewable-heavy energy matrix.

Sergipe: A Nexus of Energy and Digital Growth

Axia's strategic vision extends beyond traditional energy infrastructure. In Sergipe, the company is pioneering a model that integrates power generation with digital infrastructure. The DC Xingó data center, directly connected to the Xingó hydroelectric plant, is a flagship project in this effort. This initiative is currently in the initial documentation phase and exemplifies Axia's ability to leverage existing energy assets to support high-demand sectors like cloud computing and AI. According to industry analysis, Sergipe offers low electricity prices, abundant renewable energy, and incentives through the Sergipe Industrial Development Program (PSDI), making it an attractive hub for data center investments. By anchoring digital infrastructure to its energy network, Axia is creating a symbiotic relationship: data centers require reliable power, while energy projects gain new revenue streams through digital services.

Broader Digital Infrastructure Ambitions

Axia's influence in the digital infrastructure space is not limited to Sergipe. The company is also engaged in the $50 billion Rio AI City project, a collaboration with Elea Data Centers (backed by Goldman Sachs), which aims to establish a major AI and cloud computing hub in Rio de Janeiro. According to Bloomberg reporting, Axia is conducting engineering and cost studies for the electricity substation required to power this project, highlighting its role as a critical enabler of Brazil's digital transformation.

This dual focus on energy and digital infrastructure aligns with global trends, where data centers are increasingly dependent on renewable energy to meet sustainability goals. By positioning itself as a one-stop provider of both power and connectivity, Axia is capturing value across multiple sectors.

Conclusion: A Unique Position in Brazil's Energy-Digital Synergy

Axia Energia's strategic expansion into transmission projects, hydroelectric expansion, and data center development positions it as a linchpin in Brazil's 2026 energy and digital infrastructure agenda. The company's ability to secure high-value auctions, leverage partnerships, and integrate energy with digital needs creates a compelling investment narrative. As Brazil's government accelerates its infrastructure agenda, Axia's forward-looking approach-rooted in both traditional energy expertise and digital innovation-ensures it will remain a key player in shaping the country's economic future.