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Uruguay Allocates 670 Hectares in Florida Department for 350 MW Solar Plant Supporting 500 MW Data Center Hub

By: IDCNOVARegion: Latin America
Uruguay has designated approximately 670 hectares of land in the Florida department for the construction of a 350 MW solar power plant, according to pv magazine. The project will be developed by Spain's Solaria Energia y Medio Ambiente as part of a data center hub with capacity of up to 500 MW, marking a significant step in the country's push to pair renewable energy generation with large-scale digital infrastructure.

The land is owned by the state utility Administración Nacional de Usinas y Trasmisiones Eléctricas (UTE), and its zoning classification has been amended to permit the solar development. The overall investment is estimated at $5.7 billion, with $2 billion allocated specifically to the solar component. The data center complex itself accounts for $5.5 billion of the total and will operate under a free trade zone framework.

President Yamandú Orsi convened a meeting on November 9 with the governors of Canelones, San José, and Florida departments—Francisco Legnani, Ana María Bentaberri, and Carlos Enciso, respectively—to coordinate the project timeline. Minister of Industry, Energy and Mining Fernanda Cardona and Presidential Secretary Alejandro Sánchez also attended. Enciso confirmed that UTE holds the land required for the solar plant and that its land-use classification has been modified to accommodate the project. The Cardal area in Florida department was identified as offering transmission and distribution infrastructure that the government considers valuable for development.

Cardona noted that proximity to grid interconnection points was the primary factor in site selection, aimed at reducing connection timelines and costs. The data centers will be located in Canelones and San José departments, occupying approximately 100 hectares and 150 hectares respectively. Which site will host the first phase has not yet been determined, with the decision depending on land acquisition, environmental permitting, and the completion of administrative processes with the relevant departmental governments and legislative bodies. Cardona said technical discussions will be held with departmental governments to evaluate candidate sites, infrastructure requirements, and administrative procedures. She also dismissed claims that the project would occupy 2,700 hectares, stating that the land under consideration will not displace existing productive activities, and that final land requirements will be determined through technical and environmental assessments.

The agreement between Solaria and the government is structured in two phases. The first phase includes 200 MW of data center capacity alongside the full 350 MW of solar capacity, while the second phase adds a further 300 MW of data center capacity. The deal also includes a power purchase agreement with UTE for the solar plant's output, with a term of up to 40 years. Solaria will develop and operate the free trade zone, manage infrastructure, and connect the complex to Uruguay's 500 kV transmission network.

The project underscores Uruguay's broader renewable energy ambitions. According to the International Renewable Energy Agency, the country had 339 MW of grid-connected solar capacity at the end of 2025, up marginally from 336 MW twelve months earlier. The government aims to add approximately 500 MW of renewable capacity by 2030, with a focus on solar photovoltaic. Uruguay already generates about 97% of its electricity from renewable sources, predominantly hydropower and wind, positioning the country as a regional leader in clean energy and an increasingly attractive destination for energy-intensive data center investment.