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Brazil’s Congress approves tax exemptions to attract data center investments

By Thomson Reuters Sep 1, 2026 | 6:26 PM

BRASILIA, Sept 1 (Reuters) – Brazil’s Congress on Tuesday approved a bill exempting data-center-related equipment ​from federal taxes, part of ‌the government’s plan to lure such projects to the country.

• The Senate approved the bill on Tuesday, ‌following ​a previous greenlight ⁠from the lower ⁠house; the text now heads to President Luiz Inacio Lula da Silva for ratification

• The ​bill exempts key federal taxes – PIS, Cofins, IPI, and import ⁠duties – on IT-related ⁠capital expenditures for the ​sector, such as on servers ​and refrigeration

• The government issued an ‌executive order on the matter in 2025, but the proposal expired this year after it ⁠was not voted on by Congress

• The text approved on Tuesday is ⁠a similar ‌bill, proposed this ⁠year by the then ​government ‌leader in the lower house ​Jose ⁠Guimaraes, now the minister for institutional relations

(Reporting by Maria Carolina Marcello in Brasilia and Andre Romani in Sao Paulo, Editing by ​Natalia Siniawski)