Brazil has positioned itself at the forefront of Latin America's AI revolution with the launch of its PBIA 2024-2028 plan, committing an estimated $4 billion to artificial intelligence infrastructure development. The ambitious initiative focuses on building local data centers powered by Brazil's 85% renewable energy grid, establishing the country as a global hub for environmentally sustainable "Green AI" infrastructure.

However, this technological optimism exists in tension with growing concerns about AI-driven challenges. As Brazil enters its 2026 presidential election cycle, analysts warn that the country's untested regulatory frameworks may prove insufficient against a surge in AI-generated disinformation, potentially threatening democratic processes in one of the world's largest democracies.

The $4 Billion PBIA Vision

Brazil's PBIA 2024-2028 plan (Brazilian Plan for Artificial Intelligence) represents the most comprehensive national AI strategy in Latin America. The $4 billion investment aims to develop domestic AI capabilities across infrastructure, research, workforce development, and regulatory frameworks—reducing Brazil's dependence on foreign AI systems while capturing economic value from the AI revolution.

Central to the plan is the development of local data center capacity to support AI model training and deployment. Unlike data centers in regions dependent on fossil fuels, Brazilian facilities can leverage the country's exceptional renewable energy profile—with hydroelectric, wind, and solar sources providing approximately 85% of grid power. This clean energy advantage positions Brazil as an attractive location for companies seeking to reduce the carbon footprint of their AI operations.

Industry observers have begun referring to Brazil's approach as "Green AI"—AI infrastructure that delivers computational power without the massive carbon emissions typically associated with data centers. As corporate and regulatory pressure to address AI's environmental impact intensifies globally, Brazil's renewable energy advantage could become a significant competitive differentiator.

Brazil AI Initiative Snapshot

  • PBIA Investment: $4 billion (2024-2028)
  • Renewable Energy Grid: 85% clean energy
  • Regional Market Share: 70% of VC funding (with Mexico)
  • 2026 Election Context: Presidential elections amid AI disinformation surge
  • E-Commerce Position: Over 80% of regional retail sales (with Argentina, Mexico)

Latin America's "Cognitive Era"

Analysts describe Latin America as entering its "Cognitive Era" in 2026—leveraging artificial intelligence to "leapfrog" traditional industrial development stages. Countries like Brazil, Mexico, and Chile are integrating AI directly into social and economic infrastructure, potentially bypassing decades of incremental technological evolution that characterized development in other regions.

This leapfrogging phenomenon mirrors the mobile revolution in Africa and parts of Asia, where countries without extensive landline telephone infrastructure jumped directly to mobile networks. Latin America's approach to AI follows a similar logic: rather than building traditional industrial capacity first and then layering on AI, these countries are embedding AI from the outset—in agriculture, logistics, finance, healthcare, and public services.

Brazil's position at the "absolute forefront" of this transformation reflects both its economic scale and its strategic investments in AI capabilities. However, success will require not just infrastructure investment but also workforce development, regulatory clarity, and solutions to the digital divide that leaves many Brazilians without reliable internet access.

The 2026 Election Disinformation Challenge

Even as Brazil invests in AI infrastructure, the country faces a critical test of its ability to manage AI's darker applications. The 2026 presidential elections are expected to take place amid an unprecedented surge in AI-generated disinformation, raising serious concerns about vote manipulation and the integrity of democratic processes.

Brazil's democracy is highly polarized following recent turbulent elections, creating fertile ground for disinformation campaigns. Generative AI tools have dramatically lowered the technical barriers to creating convincing fake audio, video, and text content—enabling malicious actors to produce disinformation at scale with limited resources or technical expertise.

Experts warn that Brazil's regulatory frameworks remain untested against these AI-powered threats. While the country has made efforts to combat misinformation on social media platforms, existing regulations were designed for an earlier technological era and may prove inadequate for AI-generated content that's often indistinguishable from authentic material.

The timing is particularly concerning: Brazil is building AI capabilities while simultaneously navigating the first major national election in the age of widely accessible generative AI. This creates a race between developing beneficial AI applications through the PBIA plan and defending against malicious AI deployments by domestic and foreign actors seeking to influence election outcomes.

Mexico's AI Infrastructure Competition

Brazil's AI ambitions exist within a competitive regional landscape. Mexico is pursuing its own major AI initiative with plans to construct "Coatlicue"—a supercomputer designed to be the most powerful in Latin America, focused on AI and data processing. Construction is scheduled to begin in 2026, creating a direct technological rivalry between Latin America's two largest economies.

Brazil and Mexico together concentrate approximately 70% of venture capital dollars in Latin America. In 2025, Mexico experienced periods where it surpassed Brazil in investment volume, driven strongly by AI, fintech, and nearshoring opportunities. This competition could benefit the region by spurring innovation and infrastructure development, but it also risks duplicating efforts and fragmenting the Latin American AI ecosystem.

AI Adoption in Digital Commerce

Beyond infrastructure development, AI adoption is accelerating across Latin America's digital commerce and payments sectors. Argentina, Brazil, and Mexico generated over 80% of regional retail e-commerce sales in 2025, with financial institutions and fintech firms rapidly expanding AI use across fraud prevention, customer engagement, credit analysis, and operational optimization.

This commercial AI adoption creates immediate economic value while providing real-world testing grounds for AI applications in environments characterized by diverse populations, varying connectivity, and unique market dynamics. Brazilian fintech companies are becoming particularly sophisticated in deploying AI for credit scoring in contexts where traditional financial data is limited—innovations that could have applications far beyond Latin America.

Research Collaboration and Challenges

Despite commercial momentum, research on AI and disinformation in Latin America remains relatively limited. Brazil, Chile, and Mexico are the countries where the most robust research has been conducted, though regional collaboration remains constrained. This research gap is concerning given the urgent need to understand and counter AI-driven disinformation, particularly in electoral contexts.

Strengthening research capacity and cross-border collaboration will be essential for Latin America to develop effective responses to AI challenges while maximizing the technology's benefits. The 2026 Brazilian presidential election may serve as a critical real-world laboratory—for better or worse—demonstrating either the effectiveness of new safeguards or the vulnerabilities of democracies in the age of generative AI.

The Path Forward

Brazil stands at a critical juncture. The PBIA 2024-2028 plan represents an ambitious bet that strategic AI investment can drive economic development and social progress. The Green AI infrastructure approach offers a differentiated value proposition in an increasingly carbon-conscious world. And the scale of investment signals serious commitment to AI leadership in Latin America and beyond.

Yet the 2026 election will test whether Brazil can manage AI's dual nature—simultaneously a tool for progress and a potential threat to democratic processes. Success will require not just technological infrastructure but also robust regulatory frameworks, media literacy initiatives, platform accountability, and perhaps most importantly, societal resilience against manipulation.

The world will be watching Brazil closely in 2026. The country's experience may provide invaluable lessons for other nations navigating the complex interplay between AI development and democratic governance in an era of unprecedented technological change.

Source: Based on reporting from MEXC Blog, Latin American tech outlets, and policy research.