Brazil Takes an Important Step to Strengthen Digital Infrastructure
We would like to share with you a relevant update for our industry and for the development of digital infrastructure in Brazil.
On September 15, Law No. 15,504/2026 was enacted and published, establishing the Special Taxation Regime for Data Center Services (REDATA), which entered into force on the date of its publication.
The new legislation provides tax incentives for Data Center installation, modernization, and expansion projects in Brazil that meet the established requirements and obtain the corresponding authorization. Among the benefits provided is the suspension of certain federal taxes on electronic components and other information and communication technology products intended for the fixed assets of legal entities authorized under REDATA, including PIS/Pasep, Cofins, PIS/Pasep-Import, Cofins-Import, IPI, and Import Tax, in accordance with the conditions established by the law.
Law No. 15,504/2026 is now in effect. However, the effective implementation of the incentives will depend on the corresponding regulations, the definition of eligible goods, and compliance with the applicable authorization or co-authorization procedures.
Why is this relevant?
REDATA establishes a new framework to enhance the competitiveness of Data Center projects in Brazil, including infrastructure designed to support cloud computing, high-performance computing, and the training and operation of artificial intelligence models.
This development is aligned with a trend we are seeing with increasing clarity: Latin America is entering a new phase of digital growth, driven by cloud computing, AI, and the need for increasingly robust, scalable, and efficient infrastructure.
At Cirion Data Centers, we continue to strengthen our presence in Brazil and across the region, investing in the expansion and evolution of our Data Center infrastructure to support this growing demand and help our customers innovate, scale, and advance their digital transformation journeys.
REDATA Milestones:
- September 1, 2026: Congress approved Bill No. 278/2026.
- September 15, 2026: Law No. 15,504/2026 was enacted and published, establishing REDATA and entering into force on the date of its publication.
- Next step: The regulations will establish the conditions required for authorization and co-authorization under REDATA, as well as other requirements for the effective implementation of the incentives.
The official text of Law No. 15,504/2026 can be accessed here.
We will continue to closely monitor the development of the regulations and their potential implications for our industry and our business in Brazil.
