Brazil’s Senate has approved Redata, a tax incentive regime requiring data centers to meet their electricity demand with renewable or low-emission energy. The new provisions could boost demand for solar and wind projects, PPAs and self-generation as Brazil’s data center market expands.
On Tuesday, Brazil’s Federal Senate approved Bill 278/2026, establishing the Special Taxation Regime for Data Center Services (Redata). The text, approved without substantive changes to the version passed by the Chamber of Deputies, now goes to the president for sanction.
Among the conditions for accessing the tax benefits, data centers must meet their contracted electricity demand through supply agreements or self-generation using renewable or low-emission energy sources.
The Senate’s amendment was primarily a change in wording. The text replaced “clean or renewable sources” with “renewable or low-emission sources,” broadening the language of the original proposal and leaving the applicable criteria to be defined in subsequent regulations. The Senate cites solar and wind as examples of renewable sources, and hydropower, biomass and biogas as low-emission sources.
The requirement puts electricity procurement at the center of Brazil’s policy to attract investment in digital infrastructure and could add to demand already growing in the country’s free electricity market.
