Brazil's Data Center Decree Delayed Over Natural Gas Dispute

A long-awaited decree for Brazil's data center industry has been delayed due to a dispute over whether natural gas should be included as an eligible energy source.

The Special Tax Regime for Data Center Services (Redata) aims to attract data centers to Brazil, but the regulation of energy sources is still unresolved. The Ministry of Mines and Energy (MME) favors the use of natural gas, while the Ministry of Finance is more resistant.

The issue was discussed at a meeting on Monday, but no consensus was reached. As a result, the decree will likely retain only the language already approved by Congress, which provides for the use of 'renewable or low-emission sources' without specifying which ones fall under that definition.