Terranova Expands Data Center Strategy in Brazil Amidst ReData Uncertainty
Terranova Data Centers is shifting focus to export processing zones (ZPEs) for digital infrastructure projects in Brazil due to ongoing uncertainty surrounding the ReData tax regime. The company aims to leverage existing regulatory benefits in ZPEs to enhance investment viability and project timelines.
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Terranova Data Centers is prioritizing projects in export processing zones (ZPEs) in Brazil as it navigates uncertainty related to the ReData tax framework. CEO José Eduardo Quintella stated that while the lack of clarity does not halt investments, it alters project maturation timelines.
The company is developing a project in Uberaba, Minas Gerais, which already has a ZPE, and has requested access to 300 MW of energy, potentially supporting around 210 MW for IT. Quintella noted that ZPEs offer longer tax exemption periods compared to ReData's five-year proposal.
However, ZPEs are limited in geographic scope and primarily serve export-focused projects. The company also has projects in Campinas and Praia Grande awaiting ReData clarity, underscoring the need for a more predictable regulatory environment to enhance competitive viability.
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