The European Commission has recently published its draft adequacy decision recognizing Brazil as a country that ensures an adequate level of protection for personal data under the EU General Data Protection Regulation (GDPR). Once formally adopted — expected in the coming months — this will mean that personal data can flow freely from the European Union to Brazil without the need for additional safeguards such as Standard Contractual Clauses.
Importantly, reciprocity will also apply: Brazil is expected to issue its own adequacy decision covering the European Union. This mutual recognition will facilitate not only the transfer of personal data from the EU to Brazil, but also from Brazil back to the EU, creating a genuine two-way bridge for digital business.
Why This Matters for Data Centers
Adequacy on both sides means that companies in the EU and Brazil can store and process personal data across borders without facing the friction of complex contractual mechanisms or transfer impact assessments. This creates a straightforward and legally secure framework for establishing or expanding data center operations in Brazil.
Brazil’s Strategic Advantages
Beyond adequacy, Brazil offers a combination of unique strengths that make it an attractive hub for data center investment:
- Abundant Space and Energy Capacity: Brazil is a country of continental scale with significant land availability for large infrastructure projects, coupled with a diversified and increasingly renewable energy matrix.
- Growing Digital Market: With over 200 million people, Brazil is one of the largest internet and mobile markets in the world, driving demand for data storage, processing, and cloud services.
- Strong Legal and Institutional Framework: The Lei Geral de Proteção de Dados (LGPD) mirrors many of the GDPR’s principles. Brazil’s National Data Protection Authority (ANPD) has become a robust regulator, issuing binding regulations on security, breach notifications, and DPO requirements.
- Regional Leadership: Brazil is not only the largest economy in Latin America, but also a regional leader in privacy and digital regulation, positioning itself as a natural data hub for companies serving the broader Latin American market.
What Comes Next
The adequacy decision is still in draft form, but its final adoption is expected within months. For EU and Brazilian businesses alike, this new reciprocal framework will make cross-border operations more seamless than ever.
With legal certainty, vast resources, and a dynamic market, Brazil is set to become one of the most attractive global destinations for data centers — giving EU companies one more compelling reason to invest.
