Brazil's President Lula signs ReData data center bill into law

Brazilian President Lula signed bill 278/2026 establishing the ReData special tax regime for data centers: elimination of import duties, IPI, PIS/Pasep and COFINS on ICT equipment. Benefits last up to five years, then become permanent; 2026 revenue losses are estimated at 5.2 billion reais ($1 billion).

• Benefits cover import duties, IPI, PIS/Pasep and COFINS on data center equipment
• 2026 budget revenue losses are about 5.2 billion reais ($1 billion)
• ReData companies must allocate at least 10% of capacity to the Brazilian market
• Requires water use of no more than 0.05 l/kWh and renewable energy