On July 21, 2025, Provisional Measure No. 1,307/2025 ("MP") was published in theFederal Official Gazette, amending Law No. 11,508/2007, which provides for the tax, foreign exchange and administrative regime of Brazilian Export Processing Zones ("EPZs"). The MP:
- Establishes the requirement that all electricity consumed by companies located in EPZs must originate from renewable power plants that have started operating after July 21, 2025 (the date of publication of the MP). This requirement applies to all projects located in EPZs, such as data centers and low-carbon hydrogen projects;
- Expressly allows service providers1that operate on behalf of service-exporting companies located in EPZs to also qualify for the special EPZ regime, provided that: (i) they maintain a contractual relationship with a company authorized to operate in EPZs; and (ii) they have their project approved by the National Council of Export Processing Zones ("CZPE"). Before this change introduced by the Provisional Measure, the benefit was only applicable to service providers acting on behalf of goods-exporting companies located in EPZs.
The MP provides legal certainty by determining that the act that authorizes the installation of a company in an EPZ will ensure the treatment set forth in Law No. 11,508/2007 for a period of 20 years. In relation to service providers for companies in EPZs, such treatment is guaranteed for the remaining term granted to the contractor to operate in EPZs, and is automatically terminated upon the end of the contractual relationship with the EPZ-authorized company.
Exceptions to the mandatory use of renewable energy:
According to the MP, the obligation to use new renewable energy does not apply to:
- Projects that have been approved by the CZPE, as defined by Law No. 11,508/2007, prior to July 21, 2025; and
- The amount of power generated for self-consumption from plants located in the respective EPZ.
Generating plant located in the EPZ?
It is important to note that the MP does not require that the new renewable power plants that will supply the new projects located in the EPZs be located in the respective EPZ. Thus, a new project to be installed in an EPZ in the Northeast Region of Brazil may purchase renewable energy from plants installed in any other location, under a self-production regime or in the free market, provided that its commercial operation starts after July 21, 2025.
Our Vision: Data Centers in EPZs
Although the Federal Government previously signaled its intention to promote a broader incentive policy for the data center sector, Provisional Measure No. 1,307/2025 has, for now, brought a targeted incentive limited to service providers contracted by data center companies2located in EPZs.
The MP takes immediate effect and will remain in force for 60 days from its publication, expiring on September 19, 2025, and may be extended for an equal period. If not converted into law by the National Congress, its validity will end on November 18, 2025.
Footnotes
1 Pursuant to article 21-A, paragraph 2, of Law No. 11,508/2007, the services benefited are the following: "I - Research and Development (R&D) services; II - engineering and architecture services; III - scientific and other technical services; IV - branding and marketing services; V – specialized project services (design); VI – Information Technology (IT) services; VII – maintenance, repair and installation services; VIII – water and effluent collection and treatment and environmental services; IX – cargo transportation and transportation support services; X - other services established by the CZPE."
2 Including, for example, software license providers and SaaS service providers (including security services), connectivity providers, cooling infrastructure services, construction/engineering services.
Visit us at mayerbrown.com
Mayer Brown is a global services provider comprising associated legal practices that are separate entities, including Mayer Brown LLP (Illinois, USA), Mayer Brown International LLP (England & Wales), Mayer Brown (a Hong Kong partnership) and Tauil & Chequer Advogados (a Brazilian law partnership) and non-legal service providers, which provide consultancy services (collectively, the "Mayer Brown Practices"). The Mayer Brown Practices are established in various jurisdictions and may be a legal person or a partnership. PK Wong & Nair LLC ("PKWN") is the constituent Singapore law practice of our licensed joint law venture in Singapore, Mayer Brown PK Wong & Nair Pte. Ltd. Details of the individual Mayer Brown Practices and PKWN can be found in the Legal Notices section of our website. "Mayer Brown" and the Mayer Brown logo are the trademarks of Mayer Brown.
© Copyright 2025. The Mayer Brown Practices. All rights reserved.
This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.
