The Special Tax Regime for Data Center Services (Redata) was abruptly removed from PLP 74/2026, fueling uncertainty regarding investments in digital infrastructure and demand for clean energy.
In a turn of events that surprised the technology and energy sectors, Representative Isnaldo Bulhões Jr. (MDB-AL) eliminated Redata from the latest version of his report on PLP 74/2026. The move, finalized in just five hours, removes the tax carve-out that sought to make Brazil a competitive hub for data centers and data processing.
The change marks a significant departure from the initial proposal. While the first version of the document defended digital infrastructure as a strategic pillar for the expansion of Artificial Intelligence (AI) in the country, the new text replaces this focus with tax relief aimed at the reinsurance market.
A shift in fiscal policy
The exclusion of Redata was not just textual, but structural. Provisions that granted the sector exceptions to the limitations of the Fiscal Responsibility Law and other budgetary norms were removed from the substitute text. Instead, the rapporteur prioritized correcting fiscal asymmetries for locally operating insurers, a move that shifts the government’s development priorities.
Regarding the importance of maintaining an environment favorable to the data sector, industry experts highlight that predictability is the engine of major capital investments. As noted in recent debates:
The stability of the regulatory framework and the guarantee of tax benefits are sine qua non conditions for Brazil to attract global tech giants, which demand not only cutting-edge infrastructure but also legal certainty for their long-term investments.
Direct impact on the power sector
The removal of this incentive has direct consequences for the electric power market. Data center projects, which operate around the clock, represent robust and highly predictable loads, making them strategic consumers for expanding the demand for clean and sustainable energy sources.
The lack of clarity regarding the tax regime could jeopardize national load planning. Without the fiscal backing that Redata offered, the economic viability of digital complexes—which rely on long-term contracts with renewable energy suppliers—enters a zone of uncertainty.
As the Chamber of Deputies Floor prepares for the merit vote, political maneuvering is underway to reverse the scenario. The goal is to reintroduce the provision into the final text, to avoid the risk of the country losing relevance in a global competition for investments that require, simultaneously, high data density and a resilient energy matrix. As of now, the current report excludes any preferential treatment for data infrastructure.
