Brazil's Congress Approves Tax Incentives for Datacenter Installations under Redata
The Brazilian Chamber of Deputies approved a bill establishing a Special Tax Regime for Datacenter Services (Redata), proposing tax incentives aimed at enhancing cloud computing and artificial intelligence infrastructure. Key changes introduced by rapporteur Aguinaldo Ribeiro include limiting the suspension of import taxes to electronic components and IT products without national equivalents, while removing references to components manufactured in the Manaus Free Trade Zone.
Companies will benefit from a five-year tax suspension on equipment purchases but must commit to sustainability practices, including using renewable energy sources. The government estimates a tax exemption of R$ 5.2 billion in 2026 and R$ 1 billion annually for the following two years.
