Chamber Fast-Tracks Redata Bill for Data Centers, Plenary Vote After Carnival

Overview

• Urgency approval for PL 278/2026 sends the proposal straight to the floor without committee review, in a symbolic vote opposed by PSOL and Novo.
• The merit vote is planned for after Carnival, and a rapporteur has not yet been designated.
• The bill suspends Import Tax, IPI, PIS/Pasep and Cofins on data‑center equipment bought domestically or imported, with benefits converting to zero rates once legal conditions are fulfilled.
• Eligibility requires reserving at least 10% of installed capacity for the domestic market, investing 2% of incentivized equipment value in local R&D, and meeting renewable‑energy and stringent water‑efficiency standards.
• The government cites a short‑term fiscal cost near R$7–7.5 billion and projects up to R$2 trillion in private investment over ten years, aiming to reduce the share of Brazilian data stored abroad from about 60% to 10%, while industry urges immediate decree‑level rules defining NCM codes to unblock procurement.