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Brazil’s Digital Agenda Drives Innovation, Investment, and Opportunity

The foundation of Brazil’s digital agenda is the Digital Transformation Strategy (E-Digital 2022–2026) which serves as blueprint for building a competitive digital economy by coordinating digital policies across government, industry, and society. The strategy is built around five enabling pillars: expanding digital infrastructure and broadband access; promoting research, development, and innovation; strengthening cybersecurity and trust in the digital environment; improving digital education and workforce skills; and enhancing Brazil’s participation in the global digital economy. It also prioritises the digital transformation of the economy through wider adoption of technologies such as artificial intelligence, cloud computing, big data, the Internet of Things (IoT), and advanced manufacturing.

E-Digital’s key priorities include expanding nationwide broadband and 5G connectivity, strengthening cloud infrastructure and data centres, and positioning Brazil as a regional connectivity hub. The plan identifies artificial intelligence, semiconductors, cybersecurity, quantum technologies, and advanced digital manufacturing as strategic technologies requiring targeted investment and international partnerships.

Another major component of Brazil’s digital agenda is the Brazilian Artificial Intelligence Plan (PBIA) 2024–2028, which aims to position Brazil as a regional leader in AI. The plan focuses on developing AI infrastructure, supporting research and innovation, training skilled workers, promoting AI adoption across businesses and public services, and establishing ethical governance frameworks.

The plan is structured around five strategic axes:

  • AI infrastructure and development – investments in computing resources and data centres.
  • Diffusion, training, and capacity building in AI – training AI professionals.
  • AI for improving public services – adoption of AI solutions to enhance public services’ efficiency and quality.
  • AI for business innovation – encouraging the adoption of AI by businesses.
  • Support for the regulatory and governance process of AI – putting in place a framework to ensure the ethical and responsible use of AI.

PBIA will allocate BRL 23.03bn over the period 2024 to 2028. About BRL 14bn will go for business projects which include support for the development of the AI value chain, the establishment of national data centres, and assistance for start-ups and micro-, small and medium-sized enterprises. More than BRL 5bn will be invested in AI infrastructure and development, including sustainable and efficient energy infrastructure for data centres and AI installations. A total of BRL 500mn of these will be used for the development of green data centres, which will utilise renewable energy and energy-efficient technologies to support the growing computational demands of AI while minimising environmental impacts. The remaining funds will be allocated to training initiatives, public service improvements and AI regulation measures.

In 2025, the Inter-American Development Bank (IDB) approved a USD 150mn loan to implement a joint programme with the Brazilian Development Bank (BNDES) called PRODIGITAL. The programme aims to foster the digital transformation in Brazilian states and municipalities and to imrpove public services for citizens. The BNDES will contribute an additional USD 30mn to this financing. PRODIGITAL will co-finance a credit line for the BNDES for digital transformation projects in Brazilian municipalities with more than 100,000 inhabitants, Brazilian states and the Federal District. The selected projects will be eligible to receive financing of between USD 2mn to USD 40mn.

Beyond government digitalisation, Brazil is actively supporting private-sector innovation. Between 2024 and mid-2025, BNDES approved about BRL1bn in financing for AI-related projects, covering software developers, systems integrators, AI applications, hardware manufacturers, and digital infrastructure providers. The bank is also evaluating a dedicated investment fund of BRL 500mn to BRL 1bn focused specifically on AI and data centre projects, demonstrating the government’s commitment to expanding Brazil’s digital infrastructure and attracting technology investment.

These initiatives complement Brazil’s broader industrial policy, Nova Indústria Brasil (New Industry Brazil), which identifies digital transformation as one of its strategic missions. The programme promotes Industry 4.0 technologies, AI, cloud computing, semiconductor development, and advanced manufacturing to increase industrial productivity and technological independence. Investments in data centres are viewed as particularly important because they provide the computing capacity required for AI, cloud services, and digital businesses.

In 2024, Brazil’s federal government launched Mission 4 of the Nova Indústria Brasil. Mission 4 envisages BRL 186.6bn in public and private investments in automation, IoT, semiconductors, cloud computing, robotics, and digital infrastructure through 2035. Of this sum. BRL 42.2bn have already been allocated by the public sector, planned investments amount to BRL 58.7bn, and the private sector is seen providing BRL 85.7bn.

Mission 4’s goal is quite ambitious – to digitise 50% of Brazilian industries by 2033, with a mid-term milestone of 25% by 2026.

Overall, Brazil has established a comprehensive policy framework to support the growth of its digital economy. Through coordinated investments in AI, digital infrastructure, public-sector digitalisation, and innovation financing, the country aims to strengthen its technology ecosystem, attract foreign investment, and position itself as a leading digital and AI hub in Latin America.

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