U.S. and Brazil Propose Tax Incentives for Data Center Water and Energy Infrastructure
Sens. Luján and Britt introduced a bill for a 30% tax credit for water-reuse infrastructure in data centers. Concurrently, Brazil's Congress is reviewing amendments to allow non-renewable energy sources in its data center tax regime, emphasizing the need for stable energy for operational continuity.
Theia Market Signal Identification - AI AssistedThe U.S. Senate has proposed a 30% tax credit for data centers and manufacturers to develop water-reuse infrastructure. In Brazil, the Congress is considering revisions to the Redata regime to include non-renewable energy sources like natural gas and nuclear energy for data centers.
This initiative follows the expiration of the original Redata, with new legislation PL 278/2026 aiming to re-establish similar tax incentives. Delays in legislative approval could impact Brazil's ability to attract foreign investments. The inclusion of additional energy sources is supported by a manifesto from 10 parliamentary groups and 26 industry entities, highlighting the necessity for stable energy to sustain digital infrastructure.
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