Brazil data center market faces legislative delays amid infrastructure growth

The Brazilian data center market is facing legislative uncertainty as the REDATA bill, which provides incentives for data center construction, was not included in the National Congress's recent concentrated voting period. Despite appeals from sector entities and the Ministry of Communications, Senate President Davi Alcolumbre prioritized other matters, such as public security and critical minerals policy.

As a result, some market players are shifting focus toward the National Council of Finance Policy (Confaz) to seek reductions in ICMS taxes on imported equipment. This shift comes amid a growing infrastructure landscape in Brazil. A mapping by the Maravalley innovation hub identified 169 data centers in the country, with 132 already operational.

São Paulo remains the primary hub with 76 units, followed by Rio de Janeiro with 19 and Ceará with 9. Major global players operating in the region include Microsoft Azure, Google, Equinix, and Ascenty. The concentration in Ceará is largely attributed to international connectivity via submarine cables in Fortaleza.