Article

Brazil is advancing its role as a global data center hub through policies like Provisional Measure 1318/2025, which offers tax exemptions to foreign investors. This strategy, however, overlooks significant socio-environmental impacts, including water scarcity and the exploitation of vulnerable territories.

No adequate environmental feasibility studies exist, exemplified by the TikTok data center in Ceará, which is under scrutiny for irregular licensing practices. The ongoing discussions around Bill 2338 aim to establish a Legal Framework for AI, yet the lack of regulation raises concerns about national sovereignty and the dependency on foreign technology. The government is urged to enhance regulations to protect local interests and the environment.