Chinese tech powerhouse Huawei is expressing keen interest in making substantial investments in Brazil’s emerging data center sector, dependent on the prompt execution of a proposed tax incentive program by the Brazilian government. This potential action highlights Brazil’s increasing attractiveness as a strategic center for digital infrastructure in Latin America.
Atilio Rulli, Huawei’s Vice President of Public Relations for Latin America and the Caribbean, confirmed Huawei’s keen interest, stating, “We are completely interested [in investing]. We want the government to implement these incentives, which are good for the country, and the time has to be now.” He emphasized that the advancement of artificial intelligence (AI) in Brazil would greatly benefit from such government support.
Brazil, being the largest economy in Latin America, is actively working to secure a larger portion of the swiftly growing global data center market.
For Huawei, a more significant investment in Brazil’s data center environment would enable the company to broaden its influence in a vital growth area, utilizing its skills in connectivity, storage, and energy solutions. Huawei has demonstrated success in efficient and modular data center construction worldwide, which could aid Brazil in rapidly enhancing its digital infrastructure.Â
Brazil is also actively seeking substantial investments from international technology companies. The government’s “Redata” initiative, for example, aims to draw in up to R2 trillion (approximately US$356 billion) in data center investments over the next ten years. This all-encompassing plan includes incentives such as exemptions from federal taxes (PIS/Cofins and IPI) on data center investments and import duties on equipment.
Firms involved in the Redata initiative may also need to utilize 100% renewable energy, allocate 10% of their data center capacity for the local market, and contribute 2% of their revenue to a public fund aimed at promoting domestic technological advancement.
However, the competitive environment in Brazil’s data center sector is already strong, with global leaders like Microsoft and Amazon making significant progress in increasing their footprint in the area.
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