The federal government postponed the regulation of Redata until after the official trip to COP31, promising to announce the data center incentive decree in mid-November.
The regulation of Redata, a special tax incentive regime aimed at data center infrastructure in the country, was delayed by the administration of President Luiz Inácio Lula da Silva.
According to statements from Miriam Belchior, a representative of the Casa Civil, the final text was set for after the executive’s international commitments at COP31 in Turkey and a trip to the Philippines.
As a result, the official announcement of the regulatory decree is expected only during the week of November 16, disappointing the initial expectation of the Ministry of Finance, which had planned publication in September.
Impacts of the delay on tax incentives
Created by Law 15,504, stemming from Bill PL 278 signed in September, Redata guarantees the suspension of essential federal taxes to attract new technology investments.
The sluggishness in publishing the decree shortens the useful period for technology companies to qualify and benefit from tax relief within the current fiscal year.
Exemptions for PIS/Pasep, Cofins, and IPI remain valid until December 31, 2026, the deadline set by the tax reform. The benefit for the Import Duty may last up to five years.
Energy divergences and the natural gas impasse
One of the main sticking points preventing the rule’s consolidation is the classification of the energy matrices authorized to power data centers.
The legislation requires the use of renewable or low‑carbon‑emission sources, a loophole added in the Federal Senate that allowed the MME to advocate for the inclusion of natural gas.
The decree text is practically finalized, but the government prioritized the international conference agenda before the official announcement.
The Ministry of Finance team remains strongly opposed to using fossil fuel in the program, fearing contradictions with the ecological transition.
To overcome the hurdle, the draft text delegates operational criteria to a joint act signed by the Treasury, MME, MMA and MDIC.
Next steps and expectations for the sector
The technology market expects that the formal publication will provide the necessary legal certainty to unlock billion‑dollar computational expansion projects in Brazil.
The definitive regulation of acceptable energy sources will be the key factor in determining the country’s attractiveness to international digital economy investors.