Brazil: Entities urge data center policy vote, separation from AI agenda

Associations from the technology, telecommunications, and data center sectors advocate for separating the discussion of the Special Regime for Data Center Equipment, ReData, from that of the artificial intelligence (AI) bill and the immediate establishment of a committee in Congress to vote on the former.

In a joint statement, the entities state that Provisional Measure No. 1.318/25, which establishes ReData, is a strategic action for attracting robust investments in digital infrastructure for Brazil, with a direct positive impact on the entire digital economy chain.

The note is signed by ABDC – Brazilian Data Center Association, ABES – Brazilian Association of Software Companies, Abinee – Brazilian Electrical and Electronics Industry Association, ABRIA – Brazilian Artificial Intelligence Association, Brasscom – Association of Information and Communication Technology (ICT) and Digital Technology Companies, Conexis – National Union of Landline and Mobile, Cellular and Personal Telephone Service Companies, TelComp – Brazilian Association of Competitive Telecommunications Service Providers, among others.

The conversion of the provisional measure into law is the responsibility of the National Congress, but its regulation is the factor that will speed up investors’ decision-making and start the process of consolidating the country as one of the hubs attracting this computational infrastructure, the associations say.

“Brazil has objective conditions such as: renewable energy, communications and energy infrastructure, equipment industry, consolidated market and, after the approval of the Provisional Measure, it will also have greater legal certainty.”

According to the entities, the possible joint processing of ReData with Bill 2.338/23, which deals with the regulation of artificial intelligence, will harm both projects.

While ReData deals with tax incentives and physical infrastructure, AI regulation requires deeper debates on rights, responsibilities, intellectual property, and social impacts.

“They are agendas with different timelines and complexities,” they say.

Also according to the statement, while awaiting the conclusion of the legislative and administrative processes for the vote on ReData, the country continues to have a significant and growing deficit in the trade balance of computing and information services, which up to November 2025 totaled US$7.8 billion (bn), compared to US$6.8bn for the whole year of 2024.

For the associations, attracting computing capacity to Brazil would help reverse this trend and increase the country’s technological autonomy.

“Attracting investment in data centers, with the environmental sustainability rules set out in the Provisional Measure, is a strategic decision that repositions the country in the global scenario, creates jobs across the entire digital economy chain, and brings a new perspective for economic development. In other words, it is a decision about Brazil’s future.”

The associations that sign the document request the immediate establishment of the joint committee to review MP 1.318/25, ensuring swift and autonomous processing of ReData, which is valid until February 25, 2026.

They also call for the definitive separation between the processing of ReData and of Bill 2.338/23, preserving the “technical integrity and the temporal appropriateness of each initiative”, as well as prioritizing the vote on ReData in both legislative houses to prevent it from expiring and to consolidate Brazil as a competitive destination for investments in digital infrastructure.