Brazil’s Finance Minister Fernando Haddad will be heading to Silicon Valley in the US this week in a bid to lure data centres to Brazil by offering federal tax exemptions on related tech investments, according to sources familiar with the matter.
Haddad said Brazil could utilise its clean energy potential to attract investment and build data centres. He also noted that this policy could potentially increase capital inflows into the country. The Finance Ministry estimates that the new policy could unlock BRL 2 trillion (approximately USD 352 billion) in investments over the next decade.
The new policy will eliminate federal taxes—PIS, IPI, Cofins, and import duties—on IT-related capital expenditures for data centres. However, non-IT investments, such as construction costs, will not qualify for this exemption.
Sources indicate that Brazil’s new tax exemption policy is expected to enhance its diplomatic flexibility, providing a crucial advantage in attracting foreign investment. This move comes amidst rising global trade tensions, including US tariffs and strained relations with China.
The Finance Ministry declined to provide details concerning the policy.
