Brazil Senate Advances Redata Bill for Data Center Tax Regime, Targeting 2026 Implementation

Brazil's Senate plans to advance the Redata bill, which proposes a special tax regime for data centers, with a target implementation in 2026. Vice President Geraldo Alckmin confirmed support from Senate President Davi Alcolumbre. The Brasscom association emphasized the need for R$ 5.8 billion in fiscal incentives due to the high construction costs of data centers in Brazil compared to the US. Additionally, discussions are ongoing about reducing import taxes on construction materials and ICMS for data center infrastructure at the Confaz meeting scheduled for March 27.

Published Mar 21, 2026

The Brazilian Senate is advancing the Redata bill, aimed at establishing a special tax regime for data centers, with implementation set for 2026. Vice President Geraldo Alckmin has confirmed support from Senate President Davi Alcolumbre.

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The Brasscom association has called for R$ 5.8 billion in fiscal incentives to offset high construction costs relative to the US. Furthermore, there are ongoing discussions regarding potential reductions in import taxes on construction materials and ICMS for data center infrastructure, with a Confaz meeting scheduled for March 27.