President Luiz Inácio Lula da Silva sanctioned on Tuesday the program that reduces taxes for companies interested in installing or expanding data centers in Brazil. These centers bring together computers and equipment responsible for storing and processing data used in digital services, cloud systems, and artificial intelligence tools.
The initiative, called Redata, allows the suspension and then reduction to zero of taxes charged on the purchase or import of technology equipment. Among these are IPI, PIS/Pasep, Cofins, and Import Tax. The estimated cost to public coffers is R$ 7.5 billion over three years.
In exchange for the benefits, companies will have to meet some conditions. All electricity consumed by the projects must come from renewable or low-emission sources. This latter expression, added during analysis in the Senate, opens the door to the use of natural gas. Companies will also need to invest in research.
