Brazil approves Redata incentives for data centers

Brazil has announced the sanctioning of the Redata law to stimulate data center investment and technological development.

• The law creates tax incentives for data centers, including exemptions from PIS/Pasep, Cofins and IPI on ICT equipment for installation, modernization and expansion, plus import tax exemption when there is no domestic equivalent.
• Beneficiary companies must invest 2% of the value of purchased products in R&D and innovation and make at least 10% of processing/storage capacity available domestically; requirements are reduced by 20% for projects in the North, Northeast and Center-West.