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Elea Data Centers considers that Brazil’s pro–data center tax legislation ReData transforms the market by combining tax incentives with sustainability mandates
In sum – what to know:
Brazil’s renewable energy edge – Nearly 90% of its power comes from clean sources, making it ideal for energy-intensive AI operations.
Policy incentives – ReData links tax benefits to energy efficiency and water reuse, lowering operating costs for data center developers.
Public-private partnerships – Elea’s alliances with Oracle and Rio de Janeiro illustrate how government, technology, and sustainability can align.
Brazil is rapidly emerging as a leader in data center development and AI infrastructure across Latin America, driven by its renewable energy matrix, progressive policy frameworks, and growing global partnerships, Alessandro Lombardi, chairman and founder of Brazilian firm Elea Data Centers, told RCR Wireless News.
The executive noted that Brazil has three “durable advantages” such as power, policy, and partnerships, to become a key market for hosting AI- driven workloads
“Brazil’s energy matrix is the greenest among G20 nations, with nearly 90% of its electricity generated from renewable sources, primarily hydro, complemented by wind and solar. Elea adds self-production and energy storage, ensuring reliable, renewable power for high-density AI environments,” Lombardi said.
Brazil’s policy environment is also becoming a differentiator. “Brazil’s pro–data center tax legislation ReData transforms the market by combining tax incentives with sustainability mandates. It directly reduces the total cost of ownership for operators while rewarding energy efficiency and water reuse, thus increasing Brazil’s competitiveness rooted in a solid, sustainable basis,” Lombardi explained.
This alignment between government policy and industrial innovation is reinforced by Elea’s public-private collaborations. “Our collaboration with Oracle and the City of Rio de Janeiro demonstrates what public-private alignment can achieve. The city provides institutional support, Oracle contributes cloud and AI capability, and Elea integrates these into 100% renewable, high-connectivity campuses that attract investment and talent,” the executive seaid.
Beyond policy and energy, Brazil’s digital infrastructure is maturing rapidly. The IX.BR Internet Exchange ranks among the largest in the world, while new subsea cables and partnerships with international interconnection leaders like DE-CIX are bringing workloads closer to end users. Together, these developments reduce latency and strengthen Brazil’s standing as a regional digital hub, according to Lombardi.
When it comes to sustainability, the executive acknowledges the challenge of powering AI without compromising environmental goals. “It’s challenging, but it’s possible when efficiency is part of the design, not an afterthought,” he said. “Balancing the enormous power and cooling demands of AI workloads with strict sustainability goals isn’t easy. However, Brazil offers us a unique advantage: a clean and reliable energy matrix, along with a regulatory framework that rewards efficiency.”
The executive highlighted that Elea’s campuses are designed around those principles. “Our AI campuses integrate advanced liquid-cooling systems, closed-loop water reuse, and renewable-backed power with on-site energy storage to handle spikes in GPU consumption. The result is sustained high performance with minimal energy waste and zero dependence on potable water for cooling,” Lombardi said.
Elea Data Centers recently won a public tender to build a large-scale data center for Brazilian energy giant Petrobras, marking what it claims to be the largest IT infrastructure project ever awarded by a Latin American company.
