Our consultant Luiz Felipe Monteiro Seixas has published an article on UOL’s MegaWhat portal about competitiveness and the Special Tax Regime for Data Centre Services in Brazil, known as Redata.
Brazil is emerging as a strategic destination for new data centre projects due to its predominantly renewable energy mix, a geographical location favourable to data transit and, from 2025, tax incentives rapidly put in place for investments by international technology groups, infrastructure funds and domestic companies.
According to Luiz Felipe, Redata has been introduced to consolidate this narrative, but without addressing one key question: who pays for the expansion of the electricity infrastructure to accommodate these loads, and who decides who goes first in the queue?
He believes these are not merely technological questions, but regulatory ones as well, and the answer will determine whether Brazil seizes the opportunity or merely subsidises the arrival of major global operators without building national capacity.