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Brazil Law Ties Data Center Incentives To Energy Use
Guy Youngs Brazil’s Senate has approved “Redata”, a tax incentive regime requiring data centers to meet their electricity demand with renewable or low-emission energy. The conditions for receiving the tax benefits include data centers meeting their electricity demands by using renewable or low-emission energy sources.
“Redata” suspends federal taxes on equipment and components acquired domestically or imported for use in data centers. The tax suspension will cover import duties and the Tax on Industrialized Products. It will apply for five years.
In return, companies claiming “Redata” must allocate at least 10% of their data processing, storage and handling capacity to the Brazilian market; comply with sustainability criteria; meet contracted electricity demand through supply agreements or self-generation using renewable or low-emission sources; comply with water-efficiency limits for cooling systems; and invest in Brazil an amount equivalent to 2% of the value of products acquired under the tax incentive
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