Brazilian Data Center Firms Race to Define Tax Break Eligibility Under New ‘ReData‘ Regime
SÃO PAULO – Data center companies in brazil are actively compiling lists of equipment potentially eligible for tax exemptions under the newly announced “ReData” special tax regime, as the industry seeks clarity on the scope of benefits offered by the federal government. The initiative comes as Provisional Measure (MP) 1,318 – establishing ReData – moves through Congress, currently facing 156 proposed parliamentary amendments.
ReData aims to incentivize investment in the rapidly growing Brazilian data center sector by exempting import taxes on electronic components adn data & communication technology products deemed to have “no national equivalent.” However, a key challenge lies in defining that crucial phrase, with industry experts emphasizing the need to avoid ambiguity regarding what constitutes genuinely brazilian-made products versus those simply assembled or finished within the country.
“We are currently working on a list of products to send to the government,” stated Crislaine Corradine, chief business support officer at Elea Data Centers, during a panel at the Futurecom 2025 event. BNamericas reports that at least two other companies are undertaking similar efforts.
To facilitate this process, Brazil‘s Ministry of Development, industry and Commerce (MDIC) launched a public consultation this week, inviting input from industry stakeholders, manufacturers, and civil society. The consultation seeks to identify commonly used data center components and asks companies to submit up to ten of their most relevant items for potential tax exemption consideration.
“The success and effectiveness of ReData now depend on the technical precision of this call,” said Uallace Moreira,secretary of Industrial Development,Innovation,Commerce and Services at MDIC. “Thus, we need detailed input from the ecosystem to refine the list of equipment eligible for tax exemption and, most importantly, to establish criteria for investments in enduring data centers and, simultaneously, the development of the digital chain in Brazil.”
The public consultation period is open until October 26th. MP 1,318 is currently awaiting review by a joint committee before being converted into law by Congress.
