Brazil launches proposals to attract data centers, regulate digital competition
FILE PHOTO: Brazil's President Luiz Inacio Lula da Silva speaks during the Fifth Presidential Summit of the Amazon Cooperation Treaty Organization (ACTO), where member states meet to tackle environmental, social, and climate challenges in the Amazon biome, in Bogota, Colombia, August 22, 2025. REUTERS/Nathalia Angarita/File Photo
BRASILIA :Brazilian President Luiz Inacio Lula da Silva on Wednesday signed an executive order aimed at luring data centers to the country by exempting some related equipment from federal taxes, as well a bill to regulate digital competition.
The data centers project will according to the government exempt key federal taxes - PIS, Cofins, IPI, and import duties - on IT-related capital expenditures for the sector, such as on servers and refrigeration.
Reuters reported on the plan to attract data centers in April, citing sources.
The Finance Ministry said it estimates the new policy could unlock some 2 trillion reais ($377 billion) in investments over the next decade.
Meanwhile, a separate bill put forward by the government is looking to creates specific procedures for the country's antitrust watchdog CADE when analyzing cases involving tech companies with "systemic relevance".
The proposal would also set up a new arm inside of the regulator for digital markets.
Both the executive order and the bill will need the approval of Congress.
The executive order, however, has immediate effect for a period of time until approved by Congress, while the bill only takes effect after Congress gives the green light.
($1 = 5.3102 reais)
