As American communities increasingly reject data centers, Brazil is attracting investment through low-cost electricity and tax incentives. The country is already the world’s third-largest ChatGPT market behind the United States and India, with 215 million messages sent daily, while Google, Amazon Web Services and Microsoft are investing billions of dollars there. The REDATA law, adopted on September 15, cuts import duties on qualifying equipment and requires companies to offer at least 10% of their qualifying computing services to Brazilian customers and invest 2% of the value of tax-benefited equipment in local research and development. These measures aim to reduce Brazil’s reliance on foreign services, which currently process 60% of its digital data, although environmental opposition to data centers is beginning to emerge.
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