On the morning of Wednesday, the 25th, the Brazilian Chamber of Deputies passed a bill that aims to stimulate the growth of data center businesses in Brazil by eliminating import taxes on equipment used in their construction and zeroing the export taxes on related services. Proposed by government leader José Guimarães, the bill replaces a previous measure issued by the federal government and is now set to be sent to the Federal Senate for further consideration.

The legislation is part of an effort to capitalize on the rapidly expanding global market for data centers, which are crucial for storing and processing vast amounts of information, including cloud services and artificial intelligence training. The special tax regime, called the Special Taxation for Data Center Services (REDATA), requires companies to meet certain conditions to benefit from the tax exemptions, ensuring that they contribute to the market as expected.

This regulatory change reflects Brazil's strategic interest in becoming a regional hub for data storage and processing while potentially fostering technological advancements and economic growth. If successful, the initiative could lead to increased foreign investment and bolster the domestic tech industry as data centers become pivotal in modern digital infrastructure.