Rio Grande do Sul
Brazilian state bordering Argentina and Uruguay; capital Porto Alegre, the country's largest wine producer.
On 15 September, Brazil’s Redata law set a national tax regime for data-centre construction, affecting Rio Grande do Sul alongside every other state.
Last refreshed: 24 September 2026 · Appears in 1 active topic
What tax regime did Brazil create for data centres in Rio Grande do Sul?
Timeline for Rio Grande do Sul
Lula signs Redata law with water cap
Data Centres: Boom and BacklashMentioned in: Brazil links Scala Data Centers' AI City
Data Centres: Boom and BacklashBackground
Brazil’s southernmost state borders Argentina and Uruguay, with Porto Alegre as its capital. Agriculture, industry and services shape its economy, while wine production forms part of its national identity.
Rio Grande do Sul also sits within Brazil’s expanding digital-infrastructure geography. In September 2026, Agência Nacional de Energia Elétrica authorised a 120-megawatt national-grid connection for Scala Data Centers’ AI City campus in Eldorado do Sul, linking the state to a long-term power-development project.
The state’s relevance extends beyond that single campus. Brazil’s Redata regime, signed on 15 September 2026, applies nationally to data-centre and AI construction, so its tax incentives and water-use limit provide the policy setting for future projects in Rio Grande do Sul.
