The Brazilian datacenter market is going through a moment of regulatory inflection. In September 2025, the Executive Branch issued Provisional Measure 1,318/2025 (MP 1,318/25), establishing the Special Taxation Regime for Datacenter Services (Redata).

With the imminence of the expiration of the measure - and the consequent loss of its effects - the leader of the government in the Chamber of Deputies filed Bill of Law 278/26 (PL 278/26), which seeks to institute, through a new law, Redata. The request, presented to the Board of Directors and based on article 155 of the Internal Regulations of the Chamber of Deputies, must be considered as a matter of urgency.

As seen in previous articles, the rationale for the institution of Redata is based on three strategic pillars:

  • digital sovereignty;
  • economic competitiveness; e
  • technological development.

Government data indicate that approximately 60% of Brazilian digital cargo is hosted abroad, a situation that generates cybersecurity vulnerabilities and dependence on foreign infrastructure.

From an economic point of view, it is estimated that the operation of datacenters in the national territory is 30% more expensive compared to competing countries, mainly due to the tax burden on information and communication technology (ICT) equipment.

The government's expectation is that Redata, combined with the transformations resulting from the Tax Reform, can attract investments of around R$ 2 trillion over ten years, reducing dependence on external digital services to less than 10%.

Redata, both in the original formulation of MP 1,318/25 and in PL 278/26, is intended for legal entities that implement projects for the installation or expansion of datacenter services.

PL 278/26 was basically conceived as a replica of the provisional measure and is intended to avoid the legal vacuum resulting from possible expiration. The project maintains the same deadlines and copies the architecture of the regime – who can join, ESG and capacity counterparts, R&D&I, lists of assets and safeguards for the Manaus Free Trade Zone.

The counterparts initially proposed by the provisional measure also remain valid: 100% clean or renewable energy, water efficiency index (WUE) of up to 0.05 L/kWh, allocation of capacity to the domestic market or additional investment in R&D&I, with specific rules for the North, Northeast and Midwest regions.

For companies in the datacenter sector and potential investors, what matters has not changed. The strongest combination of benefits is concentrated in 2026, because the effects of PIS/Cofins and IPI, due to the Tax Reform, only go until December 31, 2026. After that, the Import Tax remains relevant within the general period of five years, respecting the Executive's lists, which can only be expanded.

In other words, in order to maximize savings with the use of Redata benefits, the government and stakeholders must turn their attention to qualification, cohabitation with suppliers, contracts and import logistics.

In other words, the main implication of PL 278/26 is the urgency of decision-making imposed on investors. Companies that intend to fully enjoy the tax benefits must, when (and if) the project is approved and regulated:

  • accelerate qualification processes at the Federal Revenue Service;
  • anticipate schedules for the acquisition of equipment and import of capital goods;
  • concentrate investments in Capex in 2026;
  • adjust financing structures to support the anticipation of disbursements.

PL 278/26 represents the Legislative Branch's attempt to permanently reinsert the policy of incentives for datacenters initiated by MP 1,318/25 into the legal system.

At the same time, the government has already expressed itself on some occasions, indicating that it has been working on the regulation of the benefit to unlock the expected investments and speed up the submission of applications for new projects supported by Redata.

Our team follows the progress of PL 278/26 and the infra-legal acts that will complete the regime.