Redata
Brazil's special tax scheme for data-centre operators, conditioned on an annually verified water-use CAP and other sourcing requirements.
On 15 September, President Lula signed the law creating Redata, Brazil’s tax regime for qualifying data-centre and AI construction, while retaining its annually verified water-use CAP.
Last refreshed: 24 September 2026 · Appears in 1 active topic
Timeline for Redata
Lula signs Redata law with water cap
Data Centres: Boom and BacklashMentioned in: Brazil links Scala Data Centers' AI City
Data Centres: Boom and BacklashBrazil ties tax break to water cap
Data Centres: Boom and BacklashBackground
Redata is Brazil’s special tax regime for qualifying data-centre and AI construction. It links tax relief to operating conditions, including an annually verified water-use cap of 0.05 litres per kilowatt-hour.
The regime gives developers an incentive to choose cooling systems that can meet the CAP throughout a facility’s life. Its rules also connect eligibility to renewable or low-emission power, domestic processing and storage supply, local research investment and sustainability reporting.
Redata binds tax relief to water
On 1 September, Brazil’s Senate passed the bill that became Redata. Its tax break requires eligible data centres to keep water use at 0.05 litres per kilowatt-hour, with compliance checked each year.
On 15 September, President Lula signed the law without vetoing that limit. For Redata, the annual test makes cooling design a continuing condition of tax relief rather than a one-off planning promise. Operators seeking the regime must show that their facilities can remain within the cap over time.
