Senado Federal
Brazil's federal Senate, the upper house of the National Congress.
On 1 September, Senado Federal passed PL 278/2026, linking Brazil’s Redata tax regime to a water-use CAP for data centres. President Lula signed the measure into law on 15 September.
Last refreshed: 24 September 2026 · Appears in 1 active topic
Timeline for Senado Federal
Mentioned in: Lula signs Redata law with water cap
Data Centres: Boom and BacklashApproved PL 278/2026 without changes of merit
Data Centres: Boom and Backlash: Brazil ties tax break to water capBackground
Senado Federal is the upper house of Brazil’s National Congress. It sits alongside the Chamber of Deputies in the federal legislature and considers legislation passed through Brazil’s bicameral system.
The Senate has 81 members: three senators represent each of Brazil’s 27 federative units. Senators serve staggered eight-year terms, so elections renew only part of the chamber at a time.
Its composition gives every state and the Federal District equal representation in the upper house, regardless of population. That makes the Senate a central institution when federal legislation requires approval from both chambers.
Senado Federal set the water cap
On 1 September, Senado Federal passed PL 278/2026, sending Brazil’s proposed Redata tax regime to President Lula. The bill made tax breaks for data-centre and AI construction conditional on operators holding water use to 0.05 litres per kilowatt-hour, assessed annually.
The Senate passed the measure without changes of merit, so its water condition reached the president unchanged. On 15 September, Lula signed Lei 15.504 without vetoing that limit. For Senado Federal, the episode shows its role in setting the legislative terms under which the new tax regime operates.
