Inclusion of Natural Gas in REDATA Strengthens Energy Security for Data Centers
The Brazilian Institute of Oil, Gas and Biofuels (IBP) advocates for natural gas to be recognized among the energy sources eligible to supply data centers benefiting from REDATA (Special Tax Regime for Data Center Services), as provided for in Bill No. 278 of 2026.
The program creates incentives for companies that establish or expand operations in Brazil. However, the bill currently under discussion in Congress conditions these benefits on projects powered exclusively by renewable energy sources. In IBP’s view, it is essential that REDATA also includes natural gas-fired generation, a firm, dispatchable, and reliable energy source capable of ensuring continuous power supply, energy stability, and operational security for these critical infrastructures.
Data centers are essential facilities for the digital economy, responsible for processing and storing data for digital platforms, financial systems, cloud services, and artificial intelligence applications. Because they operate with extremely low tolerance for interruptions, they require a high degree of energy reliability and operational security.
Brazil has significant potential in renewable energy sources, particularly solar and wind power, which play a central role in the energy transition. However, while these sources are essential for expanding a low-carbon energy matrix, they present variability in generation due to their dependence on weather and environmental conditions. For this reason, data centers typically operate with hybrid energy supply solutions and/or contingency systems capable of ensuring operational continuity in the event of instability or interruptions in power supply.
In this context, natural gas plays a strategic role by providing firm, reliable, and fast-response generation, contributing to power supply stability and the operational continuity of data centers.
Furthermore, in Brazil, domestic natural gas supply is expected to be progressively complemented by the expansion of biomethane production, which is projected to grow significantly in the coming years, helping reduce the emissions intensity associated with gas supply.
The inclusion of natural gas in REDATA does not represent a replacement of renewable sources, but rather an energy complementarity approach. The measure enhances the operational security of projects, reduces supply risks, and strengthens Brazil’s competitiveness in attracting global investment in critical digital infrastructure.
In a scenario of rapidly growing demand for data processing, cloud computing, and artificial intelligence, energy security will be a decisive factor in Brazil’s competitiveness within the new digital economy.
Click hereto access the manifesto in support of REDATA’s approval and Brazil’s digital future.
