Brazil Waives Tech Taxes to Attract $377B Data Center Investments

Brazil has eliminated federal taxes on key IT equipment in a bold MOVE to stimulate data center growth, potentially unlocking $377 billion in investments over the next decade. The "Redata" program, effective September 2025, mandates 100% renewable energy usage for eligibility, blending digital expansion with sustainability.

The tax exemptions target critical infrastructure like servers and cooling systems, removing barriers such as PIS, Cofins, and import duties. This policy serves dual purposes: attracting Big Tech investments while easing U.S. trade tensions through economic diplomacy.

Projects like ByteDance's partnership with Casa dos Ventos highlight Brazil's strategic positioning at the intersection of clean energy and digital infrastructure. The initiative reflects growing global competition to host next-generation data centers with lower operational costs and ESG credentials.