Indonesia Energy Corporation (IEC) has signed a Memorandum of Understanding (MoU) with Brazilian oil company Aguila Energia e Participações (AEP) to explore the development of hybrid natural gas and solar power projects to support data center operations in Brazil.
The MoU was formalized during summit meetings between Indonesian President Prabowo Subianto and Brazilian President Luiz Inácio Lula da Silva on the latter’s state visit to Indonesia last week.
Under the terms of the non-binding agreement, IEC and AEP intend to identify and assess potential opportunities to develop two pilot projects in Brazil’s northeast region.
Each pilot project would start with around 10MW of generation capacity, with the potential to scale to more than 400MW depending on demand and funding availability. The companies stated that the goal is to create a self-sustaining energy infrastructure capable of supporting data center and high-performance computing requirements.
The deal builds on an earlier partnership signed in August, where the firms outlined plans to evaluate energy-related assets and investments in Brazil.
“This summit created an opportunity for both countries to commit to cooperation in next-generation energy systems,” said IEC president Frank Ingriselli. “By integrating AEP’s stranded gas resources into hybrid gas-to-wire and renewable projects, we can help power data centers and AI infrastructure while advancing our own gas development initiatives in Indonesia.”
IEC is an independent oil and gas company based in Indonesia. Its primary operations are located onshore in Sumatra and Java, where it holds the Kruh and Citarum production blocks. The company said its work with AEP is part of a broader strategy to expand internationally into hybrid and transitional energy projects.
Brazil is the largest data center market in Latin America, with around 60 operational data centers and up to 50 under construction or planned. São Paulo is the largest hub in the country, with Rio de Janeiro the second-largest market.
Major data center companies in Brazil include Ascenty, Scala Data Centers, ODATA (part of Aligned Data Centers), Equinix, and Elea Digital.
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