Aligning Brazil with the 21st century: why the country needs a robust digital policy with a global vision.
Brazil is going through a decisive moment for its integration into the global digital economy. The expansion of cloud computing, the accelerated adoption of artificial intelligence, and international competition for data centers demand coherent, predictable public policies that are compatible with the speed of technological advancement. Unfortunately, recent decisions indicate a worrying mismatch between what the country declares as a priority and what it has actually implemented.
The recent increase, by the Executive Management Committee (Gecex), of import tax rates for BK and BIT goods — adopted without coordination with REDATA — represents a setback in building an environment favorable to digital infrastructure. This measure, from the perspective of industrial stimulus, generates adverse consequences for strategic sectors and severely compromises national competitiveness in the digital world.
Today Brazil has a processing cost between 20% and 30% higher than the international average., This puts the country at a disadvantage even within Latin America. In such a scenario, raising tariffs means increasing investment costs, lengthening timelines, and reducing the interest of global investors in the country. The impacts are clear:
Regional comparisons starkly reveal this misalignment. A 5MW Tier III data center costs approximately: R$ 197 million in Chile, R$ 165 million in Colombia, R$ 126 million in Argentina, while in Brazil the same project reaches R$ 266 million, with a tax burden of approximately 23%, compared to only 8% in Chile.
These numbers largely explain why Brazil's deficit in Computer and Information Services reached -US$ 7.6 billion in 2025, more than double the number recorded in 2010. The country has become an inet importer of computing power, This is happening precisely when other nations are establishing themselves as exporters of digital services.
REDATA rightly implements a strategic vision for Brazil's development, reducing the tax burden and making data processing costs competitive within the country. This generates a positive impact across the entire digital chain, including domestic equipment production: local sales of processing equipment (ICT: servers, storage, etc.) are expected to triple in the next 5 years, while local sales of infrastructure equipment (generators, refrigeration, electrical equipment, etc.) have the potential to quadruple during this period. The "spillover" effect on other production chains that will also be boosted (telecom and energy sectors, for example) must also be considered.
The decision of the Executive Management Committee (Gecex), published in Resolution No. 852 of February 4, 2026, caused great surprise as it went against this strategic logic and sent a negative message to investors in the digital industry, both national and international. Meanwhile, the New Industry Brazil (NIB) and REDATA While progress is being made towards strengthening critical infrastructure, productive digitization, and technological densification, the tariff realignment disregards the strategic importance of computing for national sovereignty. By insisting on instruments from the analog industrial era, Brazil weakens its digital future and falls behind in the global game, where competition comes from other countries that are taking steps to attract investment and strengthen their digital industry and infrastructure.
It is important to recognize that stimulating national production is legitimate and necessary, and REDATA will do so by promoting substantial growth in demand for locally produced equipment. However, this cannot occur at the cost of hindering investments in highly complex technologies. Without access to advanced equipment—much of which does not yet have equivalent manufacturing in the country—there will be no favorable environment for the national industry itself to develop. High tariffs do not stimulate innovation; on the contrary, they reduce investment and shift processing abroad, increasing our technological dependence. Here another contradiction is reinforced: REDATA allocates 2% of investments, both domestic and foreign, to development, research, and innovation. How can we achieve technological autonomy if we inhibit investment?
The government therefore has the opportunity and the responsibility to realign priorities. The convergence between NIB and REDATA offers a clear path: regulatory predictability, international competitiveness, sustainability, and a focus on digital infrastructure. It's about building conditions for Brazil to move from being a consumer to becoming a protagonist in the global value chains of the data economy.
Furthermore, the decision is expected to have a significant impact on the deployment and modernization costs of other segments of digital infrastructure and telecommunications networks, such as 4G and 5G mobile networks, fiber optic networks and backbones, as well as increasing the cost of various products for end consumers and businesses, such as smartphones, IT and network equipment, monitors, projectors and other peripherals. Thus, the measure may affect the viability of investments across the board, delay technological advancement and increase the cost of technology adoption for the entire society, a vital step towards social inclusion and economic development through digitalization.
It is essential that tariff, regulatory, and industrial policy decisions interact with each other and are aligned with the demands of the 21st century, as well as being guided by broad debate with the productive sector and society. Without this, the country will continue to lose investments, skilled jobs, technology, and autonomy.
The moment demands strategic vision and institutional coordination. Brazil has the scale, market, and potential. What it lacks now is adopting policies consistent with its digital ambitions..
ABDC – Brazilian Association of Data Centers
ABES - Brazilian Association of Software Companies
BRASSCOM – Association of Information and Communication Technology (ICT) and Digital Technologies Companies
MBC – Brazilian Competitive Movement
