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With an estimated investment of R$2 trillion, the Brazilian government seduces Amazon and NVIDIA with incentives for data centers powered by clean energy

Written by Noel Budeguer
Published 07/05/2025 ร s 15:45
investment - nvidia - amazon
With an estimated investment of R$2 trillion, the Brazilian government seduces Amazon and NVIDIA with incentives for data centers powered by clean energy

Brazil is structuring the Redata plan to attract up to R$2 trillion in investment in data centers, with tax exemptions, renewable energy requirements and innovation counterparts

The Brazilian government launched the National Data Center Plan, known as Redata, with the aim of attracting investments from technology giants such as Amazon and NVIDIA. The initiative aims to transform Brazil into a global hub of sustainable digital infrastructure.

Redata: tax incentive to boost digital transformation

Redata proposes the exemption of federal taxes, such as PIS/Cofins and IPI, for investments in data centers, anticipating the effects of the tax reform scheduled for 2033. This measure seeks to make Brazil more competitive in the technological landscape globally, reducing the installation and operation costs of these infrastructures.

Sustainability and strategic counterparts

Companies interested in joining the program must comply with strict environmental requirements, using 100% renewable energy and adopting energy and water efficiency practices. In addition, 10% of the data center capacity must be allocated to the domestic market, including companies, universities and research projects. A 2% contribution of revenue to the National Fund for Industrial and Technological Development (FNDIT) will also be required, which is aimed at research in refrigeration and energy optimization.

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Negotiations with Amazon and NVIDIA underway

Finance Minister Fernando Haddad is traveling to the United States to present the plan to executives from Amazon and NVIDIA. The expectation is that Redata will attract up to R$2 trillion in investments over the course of a decade, positioning Brazil as a strategic destination for data centers in Latin America.

We are not talking about taxes. We are talking about a country where today it costs more to invest in data centers than a country where tomorrow it will cost less to invest in data centers.

Fernando Haddad, Minister of Finance

Finance Minister Fernando Haddad meets with Jensen Huang, CEO of NVIDIAImage: Diogo Zacarias/MF

Challenges and future prospects

Despite the proposed advantages, the plan faces challenges, such as the need for effective regulation and ensuring that FNDIT resources are applied as intended. The government also seeks to align Redata with other initiatives, such as Export Processing Zones (EPZs), to avoid overlaps and conflicts of interest.

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Noel Budeguer

I am an Argentine journalist, currently based in Rรญo de Janeiro, Brazil, with a background focused on covering military, defense, science, technology, energy and geopolitics topics. My objective is to translate technical and comprehensive information into accessible and relevant content for a wide audience, always maintaining journalistic rigor. I am passionate about exploring how technology and defense impact society and economic development. https://muckrack.com/noel-budeguer?

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