Brazil introduces tax incentives to attract data center investment

The new regime, known as Redata, was signed into law on September 15, 2026. 

Under the program, companies involved in the construction or expansion of data centers will be eligible for tax incentives provided they meet a set of government requirements. The benefits may also be extended to suppliers of equipment and technology products used in approved projects.

One of the key conditions for participation is the use of renewable energy sources. The program will also allocate part of its resources to support industrial and technological development in Brazil’s northern, northeastern and central-western regions.

Further details on how the incentives will be provided are expected to be established through additional regulations.

Earlier, it was reported Brazil and the U.S. would hold new talks on tariffs in late September.