Photo: screengrab from the official website of Brasil 247

 
By Brasil 247 - Brazilian President Luiz Inácio Lula da Silva's government has decided to move forward with a long-delayed provisional measure granting multi-billion reais in tax incentives to technology multinationals that set up data infrastructure in the country, two members of the economic team told Reuters, with the plan set for launch in early September.

The proposal, known as Redata, had initially been expected in the first half of the year but was postponed.

The provisional measure, first reported by Reuters in April, will exempt federal taxes — PIS, Cofins, IPI and import duties — on capital goods investments linked to information technology for data centers.

The Redata plan has been eagerly awaited by major domestic and international data center investors, who increasingly see Brazil as a potential global hub for the sector and have been negotiating with big tech companies to move large-scale projects forward. 

(Reported by Brasil 247 on August 29, 2025)