Huawei and ByteDance are planning major investments in Brazil's cloud sector amid US concerns of growing Chinese influence in Latin America.
Huawei is set to announce a deal using data centers operated by Dataprev, Brazil's state-run social data systems manager.
They are also discussing partnerships with Edge UOL, a cloud services division of Grupo UOL PagSeguro.
The potential data center deal was discussed after a meeting in Dongguan, China, attended by key executives.
Huawei Cloud aims to be a link between China and Latin America, focusing on infrastructure, cybersecurity, and AI with Edge UOL.
ByteDance is exploring data center projects in Brazil, including a large data center in Ceara region in partnership with Casa dos Ventos.
In the past year, Brazil and China signed a cooperation agreement on AI, emphasizing joint work on platforms and AI training.
Brazil aims to integrate Chinese AI technology into factories for enhanced productivity, amid efforts to work closely with China on technology collaborations.
Brazil has traditionally pursued a non-alignment strategy, seeking partnerships with both the US and China.
US officials have expressed concerns over Chinese companies' influence in Latin America, citing national security risks like data theft and surveillance.
Huawei and ByteDance have faced US scrutiny over national security risks, with Huawei under sanctions since 2019 and TikTok facing potential bans.
In a separate incident, Brazilian authorities suspended a Chinese electric vehicle plant's construction due to reported labor violations.