While Americans Turn Against Data Centers, Brazil Offers Tax Breaks and Cheap Power, Representing a Potential ‘Release Valve’ for U.S. Constraints

While Americans turn against data centers, Brazil offers tax breaks and cheap power, representing a potential ‘release valve’ for U.S. constraints

The government is cutting taxes on data center equipment as Google, Amazon and Microsoft expand in a country already hungry for AI services.

Brazil's REDATA Law Suspends Select Data Center Equipment Taxes

The law sets a five-year incentive term, but three tax suspensions run only through Dec. 31, 2026. Qualifying projects must meet domestic-service, energy, water and research requirements.

As Americans turn against data centers, Brazil offers tax breaks and cheap power to attract them

With communities across the U.S. rebuffing data centers, there’s growing political pressure to curtail their construction. But thousands of miles away, South America’s biggest country is already a top AI market and making the buildout easier.  Brazilians send 215 million messages to ChatGPT messages per day, according to OpenAI, making the country the chatbot maker’s […]