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The Brazilian Chamber of Deputies approved Project Law 278/2026, effectively replacing the expiring Redata provisional measure, which offers tax incentives for data centers. The law, reported by Deputy Aguinaldo Ribeiro, retains the original incentives, including exemptions from federal taxes like PIS/Pasep, Cofins, and IPI, and mandates investments in renewable energy.

With expectations of generating R$ 5 billion in 2026 and R$ 1 billion annually for the next two years, the law aims to bolster Brazil's position in the global data center market. The approval is seen as vital for maintaining regulatory confidence among investors, especially as the government anticipates attracting R$ 2 trillion in investments over a decade.