Brazil's Senate to Advance Redata Bill for Data Centers, Aiming for 2026 Implementation

Brazil's Senate is set to advance the Redata bill, which aims to create a special tax regime for data centers, with implementation targeted for 2026. Vice President Geraldo Alckmin confirmed Senate President Davi Alcolumbre's support, while the Brasscom association highlighted the need for R$ 5.8 billion in fiscal incentives due to the high costs of constructing data centers in Brazil compared to the US. Discussions are also underway regarding potential reductions in import taxes on construction materials and ICMS for data center infrastructure at the upcoming Confaz meeting on March 27.

Published Mar 20, 2026

Brazil's Vice President Geraldo Alckmin confirmed that Senate President Davi Alcolumbre is supportive of advancing the Redata bill, which establishes a special tax regime for data centers. The Brasscom association noted that constructing data centers in Brazil is significantly more expensive than in the US, and underlined the necessity of budget provisions for an estimated R$ 5.8 billion in fiscal incentives by 2026.

AI-curated by Theia

The industry is also optimistic about potential adjustments to import taxes on related construction materials. Additionally, state finance secretaries are expected to discuss reductions in ICMS for data center infrastructure, with hopes for approval in the upcoming Confaz meeting on March 27.