On Wednesday, Brazilian President Luiz Inácio Lula da Silva signed an executive order designed to attract data centers to the country and proposed a bill aimed at regulating digital competition, Reuters reported.
The executive order provides exemptions from key federal taxes—including PIS, Cofins, IPI, and import duties—on IT-related capital expenditures for the data center sector, such as servers and refrigeration equipment. According to the Finance Ministry, the measure could unlock an estimated 2 trillion reais (approximately $377 billion) in investments over the next decade. Reuters reported on the government’s plan to attract data centers earlier in April, citing sources familiar with the proposal.
Separately, the government submitted a bill to establish specific procedures for the Administrative Council for Economic Defense (CADE) when reviewing cases involving tech companies deemed “systemically relevant.” The legislation would also create a dedicated unit within CADE focused on digital markets, strengthening the regulator’s capacity to oversee competition in Brazil’s growing technology sector.
Both the executive order and the bill require approval from Congress. The executive order takes immediate effect pending legislative approval, while the competition bill will only come into force once Congress grants its consent.
These measures reflect Brazil’s broader strategy to boost investment in digital infrastructure while modernizing the country’s approach to regulating large technology platforms, aligning economic growth with stronger oversight of digital market competition.
