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Brazil Launches R$5.2 Billion Tax Incentive for Data Centers to Power AI and Cloud Ambitions

President Luiz Inácio Lula da Silva sanctioned a new tax regime, Redata, to suspend federal taxes on data center equipment, a measure estimated to save the industry R$5.2 billion in 2026 and spur investment in AI infrastructure.

By Raj Patel

Published
Brazil Launches R$5.2 Billion Tax Incentive for Data Centers to Power AI and Cloud Ambitions
Illustration — BRZ.news

President Luiz Inácio Lula da Silva sanctioned a new tax regime, Redata, to suspend federal taxes on data center equipment, a measure estimated to save the industry R$5.2 billion in 2026 and spur investment in AI infrastructure.

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