Governors Push for Natural Gas Inclusion in Data Center Incentives, Aiming for Regional Development.
Governors from Amazonas and Sergipe have intensified efforts to ensure that natural gas is considered in the regulation of Redata, a special tax regime for data centers. The primary concern is the fear that excluding this energy source could limit investments and development in their states, which have distinct characteristics and infrastructure compared to the country’s more established regions.
The law establishing Redata, recently sanctioned, provides for tax incentives for projects that demonstrate the consumption of energy from renewable or low-emission sources. The exact definition of what qualifies as “low emission,” particularly regarding natural gas, is still pending, with an interministerial ordinance expected to clarify the matter.
Debate Over “Low Emission” and Natural Gas
The core of the dispute lies in the interpretation of the term “low emission.” While the Ministry of Mines and Energy (MME) supports the inclusion of natural gas, aligning with an amendment proposed by the Senate, the Ministries of Finance and of Development, Industry, Trade, and Services (MDIC) are showing resistance. The latter are concerned about granting R$ 7.2 billion in tax benefits to projects that use fossil fuels.
Several alternatives are under discussion, ranging from the total exclusion of gas to its conditional use with compensation mechanisms, such as carbon credits, biomethane, or carbon capture technologies. One possibility is to allow its use as a backup during periods of grid instability.
However, the lack of consensus within the government regarding whether or not to classify natural gas as a low-emission source under the regime meant that this definition was left out of the decree.
Arguments for Including Natural Gas
The governors of Amazonas and Sergipe argue that a uniform national rule may not suit regional realities. They advocate for the adoption of environmental and energy performance criteria, allowing the combination of various sources, such as natural gas, renewables, and storage, as long as they meet emission and efficiency parameters.
Energy availability, predictability, and flexibility are crucial points for data centers, which operate continuously. According to proponents of natural gas, these characteristics are more easily guaranteed with its use, especially in regions where transmission and grid infrastructure are still under development.
Amazonas and Sergipe: Regional Potential
In Amazonas, the argument focuses on the state’s vast natural gas infrastructure and reserves. The proposal is to use this source, combined with renewables and batteries, to enable the installation of data centers in a region facing challenges in grid expansion and redundancy. For Governor Roberto Cidade, this would be a way to promote regional development and integrate remote communities through digital infrastructure.
In Sergipe, the scenario is marked by the presence of a thermoelectric complex and an LNG terminal, as well as port infrastructure. The state plans a large data center complex in the Export Processing Zone (ZPE) and views natural gas as an essential factor for the technical and economic viability of the project. Senator Laércio Oliveira estimates significant natural gas demand if the project materializes.
