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Lula sanctions today project that creates incentives for installation of data centers in BrazilPhoto by riquebeze on Pexels
Business
Energy

Lula sanctions today project that creates incentives for installation of data centers in Brazil

oglobo15 September 2026 at 04:00

President Luiz Inácio Lula da Silva sanctioned this Tuesday the bill that establishes the incentives plan for the data center sector in Brazil. The text had been approved by the Chamber of Deputies in February and by the Federal Senate earlier this month.

The project was unblocked after a meeting between Lula and the Senate president, Davi Alcolumbre (União Brasil-AP), at the end of August. The proposal establishes that data center companies must contract all their electricity demand through supply contracts or self-production from renewable or low-emission sources.

The senators included the term "low emission" to allow data centers to also contract natural gas energy. The text determines that, through the program called Redata, companies in the sector may have suspension and subsequent reduction to zero tax rates of taxes such as IPI, PIS/Pasep, Cofins and Import Tax on the acquisition and importation of information and communication technology equipment destined for the installation of data centers.

Why this matters

The Redata program represents a milestone for the Brazilian technology sector, offering tax incentives that can attract investments in digital infrastructure for the country. For consumers, the expansion of data centers may mean greater cloud storage capacity and faster digital services. The clean energy requirement also positions Brazil as a potential sustainable data center hub in Latin America.

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