I. Objective of the assignmentThe objective of this consultancy is to support Brazilian authorities at both national and sub-national levels in enhancing their understanding of the existing and future approaches to developing publicly owned data centers. This assignment will first conduct a mapping exercise to capture a number of the existing/legacy government data centers and their geographical dispersion. The consultancy will further assess the modernization potential; with its economic and environmental impacts. The report will identify strategic opportunities; articulate challenges and gaps; and analyze the findings to deliver insights on the state of data center adoption across the country. II. Scope of Services: The scope of services for this assignment encompasses a comprehensive analysis of Brazil’s public sector-owned data center ecosystem; complementing existing insights on private sector data centers. The analysis will explore various dimensions of the infrastructure; focusing on its economic and environmental impacts. The consultant firm will work under the guidance of the Task Team lead to conduct the following activities: A. Market Overview of the Public Sector-Owned Data Centers in Brazil. This activity aims to provide a comprehensive and structured overview of the current public sector-owned data center ecosystem. The assessment should include an extensive mapping exercise of data centers across federal; state; and municipal levels. The analysis will identify gaps in the current infrastructure; particularly in energy and broadband connectivity; as well as cooling systems; physical security; and energy efficiency. It will evaluate the readiness of these centers to meet future government requirements; focusing on key factors such as scalability; availability; cost-efficiency; sustainability; and cloud integration. B. Economic Impact Analysis. The second critical component of this assignment is an economic impact analysis. This will evaluate the economic contributions of public sector-owned data centers; including both direct and indirect benefits such as job creation; income generation; energy consumption; and investments in digital infrastructure. The consultancy will employ econometric models to determine correlations with socioeconomic factors and provide a robust demand forecast for various scenarios; including government-owned; leased capacity; cloud services; etc. The analysis will also dive into existing PPP arrangements as key contributors to the economic effectiveness of public-owned data centers; assessing their structure and success in meeting data center needs. This deep dive will assess the scalability of current PPP arrangements and propose alternative models for future expansion and modernization. A comprehensive cost-benefit analysis of at least the following scenarios—full government ownership; leasing capacity; purchasing cloud services; or hybrid models—will be performed using a Total Cost of Ownership (TCO) methodology. The assessment will explore return on investment (ROI); operational (OPEX) and capital (CAPEX) expenditures across various intervals for the next 2-10 years; providing detailed demand forecasting and market analysis. The insights will facilitate the Brazilian government’s engagement with the private sector regarding public-owned data centers; enabling private investors to identify opportunities and better navigate the challenges present in the Brazilian market; including understanding economic multipliers; market size; and demand dynamics. Additionally; it will also assess the existing supply for data center services public sector; and opportunities for attracting private investments.C. Environmental Review of the Brazilian Data Centers. This review will deliver a comprehensive environmental analysis of Brazil’s state-owned data centers; focusing on key factors such as energy efficiency; water consumption; equipment performance; and carbon emissions. A Power Usage Effectiveness (PUE) calculation will benchmark energy efficiency against global standards. The consultancy will evaluate the feasibility of achieving EDGE certification or similar standards. Furthermore; the assessment will recommend actionable strategies to reduce environmental impact.