Brazil's Chamber Approves Project Law 278/2026 to Replace Expiring Redata Provisional Measure for Data Centers
The Brazilian Chamber of Deputies approved Project Law 278/2026 to replace the expiring Redata provisional measure, which provided tax incentives for data centers. The new law, reported by Deputy Aguinaldo Ribeiro, maintains similar provisions and aims to attract R$ 5 billion in investments for 2026 and R$ 1 billion annually thereafter. The law addresses regulations for energy consumption and environmental criteria, with expectations of attracting up to R$ 2 trillion in investments over ten years. The approval is crucial for ensuring regulatory stability for companies planning investments.
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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.
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