US Senate · Datacenter Dynamics
Brazil's President Lula signs ReData data center bill into law
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On Tuesday, September 15, during a ceremony at the Planalto Palace, President Luiz Inácio Lula da Silva (PT) signed Bill 278/2026 into law, establishing the Special Taxation Regime for Data Center Services (aka ReData).
Key facts
- On Tuesday, September 15, during a ceremony at the Planalto Palace, President Luiz Inácio Lula da Silva (PT) signed Bill 278/2026 into law, establishing the Special Taxation Regime for Data Center
- According to government estimates, the tax waiver will total approximately 5.2 billion reais ($1bn) in 2026, with 1 billion reais ($193.7m) projected for each of the following two years
- The Senate rapporteur, Senator Cid Gomes (PSB), reportedly made only editorial adjustments to prevent the bill from returning to the Chamber of Deputies
- In the case of the Import Tax, the benefit applies only to products with no equivalent manufactured in Brazil, and the Manaus Free Trade Zone retains specific treatment, with the IPI suspension not
Summary
The law creates tax incentives for the establishment of data processing centers in the country, with a focus on facilities dedicated to cloud computing and artificial intelligence. The bill was approved by the Senate on September 1, without any substantive changes from the version that came from the Chamber of Deputies, where it had been passed in February under urgent procedure, without going through the committees. The Senate rapporteur, Senator Cid Gomes (PSB), reportedly made only editorial adjustments to prevent the bill from returning to the Chamber of Deputies.