The Federal Senate has approved Redata, a special tax regime for data centers. A crucial amendment included natural gas among the energy sources eligible for tax incentives, boosting Brazil’s digital infrastructure.
Approved by the Federal Senate last Tuesday, Bill 278/26, which establishes Redata – the Special Tax Regime for Data Center Services – now moves to presidential approval. The measure, aimed at attracting investments to the country’s data center sector, generated intense debates, particularly regarding a fundamental modification in its final wording.
The main alteration, introduced via an amendment, broadened the definition of energy sources eligible for tax benefits. Originally focused on “clean” sources, the approved version replaced the term with “low-emission,” paving the way for the inclusion of natural gas as an energy option for these ventures – a turning point for Brazil’s energy matrix and energy transition.
Natural Gas Gains Ground in Data Center Energy Mix
The amendment that included natural gas among the eligible sources to supply data centers benefiting from tax incentives was proposed by Laércio Oliveira (PP/SE). This change reflects a strategic move to align digital infrastructure development goals with Brazil’s existing energy supply capacity. The bill, reported by Senator Cid Gomes (PSB/CE), advanced after a political agreement that ensured its expedited processing during a concentrated legislative period before the elections.
Energy Demand and Water Challenges
Redata‘s arrival on the national scene has reignited important discussions about growing energy demand and water resource management. The attraction of data centers is viewed by the energy sector as a strategic opportunity. These data processing centers can serve as a vital destination for surplus renewable generation, especially in the Northeast, helping to mitigate generation cuts, known as curtailment.
Projections from the National Electric System Operator (ONS) indicate that Brazil’s total energy demand could exceed 100 GW in the coming years, reaching an average of 101.9 GW by 2030, with data centers being a significant driver of this growth.
Despite the energy impetus, the sustainability of data centers goes beyond the energy source. Civil society organizations, unions, and social movements criticized the project, pointing to a lack of transparency in negotiations and the need to safeguard the country’s digital sovereignty. Furthermore, water consumption by these facilities is a global challenge.
“Global water consumption by data centers could reach 644 billion liters annually by 2030. However, the adoption of water-saving measures is capable of reducing this demand to 388 billion liters annually.”
This projection, from consulting firm Rystad Energy, highlights the importance of technologies and practices aimed at water conservation for the future of these infrastructures in Brazil and worldwide.
Future Outlook for the Energy and Natural Gas Sector
The approval of Redata, with the inclusion of natural gas, signals an advancement in the policy to incentivize digital infrastructure, while also prompting reflections on the true scope of sustainability. The government is now seeking a balance between technological development and environmental responsibility, with natural gas positioned as a key resource in the energy transition.
This legislative step could accelerate discussions about expanding natural gas infrastructure and the demand for future auctions, such as those anticipated by PPSA, which already plans to release a preliminary tender document for a federal gas auction soon. The scenario points to significant growth in natural gas‘s participation in supplying energy to Brazil’s data center market, shaping the future of clean and sustainable energy in the country.
