Why the euphoria with data centers is already at risk
After the approval of the Redata law generating initial euphoria with a potential wave of investments in data centers in the country, the delay in regulating the law is raising an alert signal. To date, no new projects have been announced – and consultancy Rystad Energy has just reduced its projections for the installation of data centers in Brazil by two-thirds: from 21 gigawatts to 7 gigawatts by…
The Brazilian government's Redata law, aimed at encouraging data center investments, has sparked initial enthusiasm but is now facing delays in regulation, raising concerns. Despite the potential for a wave of investments, no new projects have been announced, and consultancy Rystad Energy has reduced its projections for data center installations in Brazil from 21 gigawatts to 7 gigawatts by 2035.
The delay is attributed to a lack of clarity on criteria for tax incentives, including definitions of "low-emission" energy sources and efficiency metrics. A presidential decree detailing the rules is pending, and further regulatory decisions are needed from agencies.
Written by urgent.news from Brazil Journal's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
