en.Wedoany.com Reported - Brazil's Chamber of Deputies has advanced several bills linking data center installation to renewable energy procurement in recent weeks, while the Senate President remains hesitant to schedule the government's proposed special legal framework for the sector. This framework originates from Provisional Measure 1318/2025 (MP 1318/2025) and led to Bill 278/2026 (PL 278/2026), which aims to create the Special Tax Regime for Data Center Services (Redata), with conditions including local content requirements and the use of renewable or "clean energy." However, after the Chamber approved it in the early hours of February 25, Senate President Davi Alcolumbre (Brazil Union Party/Amapá) unilaterally decided not to put the bill to a vote, causing the provisional measure to lapse.

It is against this backdrop of uncertainty that other proposals have begun advancing through the legislature. Bill 490/26 (PL 490/26), approved in early June by the Chamber's Science, Technology, and Innovation Committee (CCTI), provides incentives for clean and competitively priced energy for data centers installed in the North and Northeast regions, along with the establishment of a green certification. The text will also be reviewed by the Mines and Energy Committee, the Environment and Sustainable Development Committee, the Finance and Taxation Committee, and the Constitution, Justice, and Citizenship Committee. Proposed by Congressman Duda Ramos (Democratic Movement Party/Roraima) and reported by Congressman Josenildo (Democratic Labor Party/Amapá), one of its objectives is to enhance the renewable energy potential of these regions and "reduce environmental conflicts and resistance associated with data center construction." The bill authorizes the federal government to encourage data centers to sign long-term Power Purchase Agreements (PPAs) with various electricity sector entities, prioritizing solar, wind, biomass, and low-environmental-impact hydropower. The text does not mention natural gas, which is seeking a place within Redata, but remains open to "hybrid solutions, energy storage systems, or other technologies aligned with the energy transition."

Bill 1680/25 (PL 1680/25), proposed by Congressman Pedro Lucas Fernandes (Brazil Union Party/Maranhão), was also approved by the CCTI. This bill guarantees data centers priority access to the transmission grid in regions with surplus electricity generation, also targeting the Northeast. This legislation, which creates a National Data Center Policy, amends the Electricity Concession Law, authorizing data centers to bear the costs of grid infrastructure works themselves, such as installing transmission towers and power cables, for exclusive or shared use. According to the proponent, the measure aims to ensure power supply for the facilities, provided that the investment costs are not passed on to residential electricity tariffs. The CCTI approved a substitute text from the rapporteur, Congressman David Soares (Progressive Party/São Paulo), which removed tax exemption provisions from the document. In his explanation, Soares stated that this issue was already addressed by Redata and argued that infrastructure guarantees compensate for the lack of tax incentives. He also noted: "Fast connectivity becomes a competitive advantage as important as tax incentives." The proposal has garnered support from industry players, who see it as a step towards treating data centers as an infrastructure agenda item. Leonardo Senra, Chief Revenue Officer at cloud service provider Omid Solutions, commented: "The approval of PL 1680/2025 is a significant step for Brazil to treat data centers as national strategic infrastructure. In the era of the digital economy and artificial intelligence, computing power, energy, and data are as important as highways, ports, and the electricity grid."

According to Brazil's Ministry of Mines and Energy, investor interest in Brazilian data center projects has resulted in cumulative applications for grid connection opinions totaling 38 GW, with 7.1 GW representing an estimated investment of approximately R$ 159 billion in the coming years. Earlier this month, Minister Alexandre Silveira (Social Democratic Party) used these figures to urge the Senate to advance the Redata process. Silveira stated that Brazil offers conditions attractive to international investors, such as an electricity matrix predominantly based on renewable sources and regulatory stability. He also noted that the intensification of conflicts in the Middle East is redirecting global investments towards Brazil, with companies initially planning data centers in that region now seeking alternatives within Brazil, and calling on the National Electric System Operator (ONS) to expedite transmission network access. He mentioned the creation of the National Transmission System Access Plan (Pnast), aimed at managing the queue of grid connection applications.

In other energy sector news, the federal government has opened a special credit line of R$ 550 million to subsidize the import of diesel for road transport. The provisional measure published this Monday (June 29) is linked to the same fuel support program established in Provisional Measure 1349/2026, aiming to ensure supply and mitigate market impacts. Meanwhile, Brazil issued its first national regulation setting minimum energy efficiency targets for LED bulbs and fixtures, a measure expected to cumulatively save between 283 and 432 TWh of electricity by 2040, with non-compliant products required to exit the market within five years. Additionally, France recorded approximately 1,000 excess deaths during the peak of last week's heatwave, with several countries breaking high-temperature records over the weekend as the heatwave slowly moves eastward across the continent. In climate fund projects, the Brazilian Development Bank (BNDES) approved R$ 43.8 million in financing for Ferbasa to build a new charcoal production plant in the city of Maracás, Bahia, which will reduce methane gas emissions, with approximately R$ 35 million coming from the Climate Fund (Fundo Clima).