Brazil Senate Set to Vote Redata Data Center Tax Bill by September 4
Brazil's Senate has scheduled the Redata data center tax bill for its August 31 to September 4 voting week. The regime offers five years of federal tax suspension in return for renewable power and local capacity. The post Brazil Senate Set to Vote Redata Data Center Tax Bill by September 4 appeared first on The Rio Times .
The Brazilian Senate plans to vote on the Redata data center tax bill during its final concentrated week of voting before the October election, from September 4. The bill, which aims to reduce taxes on datacenter services, was added to the agenda following a meeting between Senate President Davi Alcolumbre and President Lula on August 26.
The proposal, initially proposed as Medida Provisória 1318 in 2025, would suspend four federal levies on equipment for qualifying projects for five years, after which the benefits would be converted into a full exemption if the company meets the regime's conditions. Beneficiaries must also ensure that at least 10% of their processing, storage, and data management capacity is dedicated to the Brazilian market, with a lower threshold of 8% in certain regions.
The bill also requires companies to use clean or renewable energy and invest in research and development in Brazil. The regime could potentially attract R$ 2 trillion (US$ 387.6 billion) in data center investment, according to government projections, although this figure is not yet a commitment. The bill has faced opposition, including from environmental groups, who argue that the tax breaks could lead to increased emissions and environmental degradation.
However, industry groups and trade bodies have signed a manifesto urging the Senate to approve the bill quickly, citing higher costs for building data centers in Brazil compared to other countries.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
