Brazil cuts taxes on data center equipment; Google plans to double its infrastructure

Brazil enacted Law 15,504 on September 15, 2026, granting tax benefits on the purchase and import of data center equipment, with import duty relief limited to ICT items and components not produced domestically in equivalent form. Under the REDATA framework, approved operators must invest 2% of the value of benefited equipment in Brazilian R&D and innovation and supply at least 10% of data processing, storage, and management services to the domestic market, while meeting requirements on local supply, power, and water use, with all electricity demand sourced from renewable or low-emission energy. Google plans to double its infrastructure footprint in the country, underscoring Brazil's push to attract hyperscale cloud and AI data center investment. The law matters because it lowers capital costs for data center buildouts in Latin America's largest economy at a time of surging AI-driven demand. Watch for the federal government's list of eligible equipment and further operator approvals under REDATA.