The sending of the Redata Bill, a policy to encourage the installation of data centers in Brazil, only partially calmed the sector, worried that the provisional measure issued by the government last year could expire and awaiting approval.
Until the beginning of this week, no project had been presented in Congress to regulate the Special Taxation Regime for Datacenter Services, Redata. Not yet approved by the Chamber, the Provisional Measure, which would still need to be voted on by a joint parliamentary committee, runs the risk of losing its validity on February 26th.
As an alternative to the tight deadline, which basically reproduces the text of the MP signed in September 2024. The president of the Chamber, Hugo Motta, signaled that he should urgently process the text next week.
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A sector source heard by the InfoMoney stated that the government is signaling that the project will be approved by the 25th. Management estimates that the program could attract up to R$2 trillion in investments to Brazil over the next ten years.
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A demand from the sector, Redata exempts import costs for several critical products for the installation of data centers, such as the video cards that support cloud processing and artificial intelligence.
Investments on hold
In return, companies will have to reverse part of the amounts invested in infrastructure in research financing, revert processing capacity to the local market and comply with sustainability criteria.
“As long as there is no effective approval, it transmits a bit of insecurity to large clients who are waiting for this approval to make large investments”, points out Ascenty’s head of strategy, Marcos Siqueira. The executive of the company with 25 data centers in Latin America explains that this is due to the high cost of implementing projects and the impact of the current tax regime on projects.
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A 10MW artificial intelligence data center, for example, costs something close to US$1 billion for whoever builds it and another approximately US$5 billion for the cloud computing company — hyperscalers, as companies like Google, Amazon and Microsoft are called — that equip them.
Siqueira says that interest from American and Asian companies has grown since the MP’s announcement, but no investment has yet been made. There are advanced projects at Ascenty, for example, that are awaiting approval of the text to continue.
