Overview

• Brazil’s provisional measure Redata, issued in September, would exempt key equipment from taxes to spur installation and expansion of data centers and now awaits congressional approval.
• The government cites potential investments of up to R$2 trillion over ten years, arguing the policy would strengthen digital autonomy as 60% of Brazil’s cloud capacity is hosted abroad and the IT services trade deficit rose from R$3 billion in 2021 to R$6.8 billion in 2024.
• Industry leaders say local data centers cost 20%–30% more due to taxes and contend the plan ties benefits to sustainability targets and a 2% R&D commitment to improve competitiveness.
• Market forecasts point to R$12 billion in investments by next year and as much as R$60 billion by 2030, with site selection prioritizing reliable power, connectivity and submarine cable hubs such as Fortaleza, Rio de Janeiro, Salvador and Praia Grande, plus an emerging route through Amazonas.
• Regulatory uncertainty persists as Anatel’s Resolution 780 adds conformity and sustainability checks and executives warn PL 2.338/2023 could deter large AI-ready facilities, while civil-society groups spotlight socioenvironmental risks, citing a TikTok project in Caucaia licensed as low impact despite high projected energy use.