Brasilia, Feb. 25 -- Brazil's Chamber of Deputies approved, in the early hours of Wednesday, a bill creating the Special Tax Regime for Data Centre Services (Redata), a measure designed to attract large-scale digital infrastructure investments with an estimated tax waiver of R$ 7 billion over three years. The proposal now moves to the Federal Senate, which must vote on it before midnight when the provisional measure underpinning the policy expires.

The regime aims to encourage companies to install or expand data centres in Brazil by suspending federal taxes on the acquisition and import of equipment destined for fixed assets. The benefits include exemptions from PIS/Pasep, Cofins and IPI taxes for Information and Communication Technology...