Nature of Locally redundant replication:
With locally redundant replication, storage account data is replicated three times within the same data center. Locally redundant replication is offered at discounted rates.
Note that changing from Locally redundant replication to geo-replication will incur additional costs.
More on Locally Redundant Replication here.
According to Microsoft,
"The Azure website has been updated to provide detailed information on service availability and pricing for the new region. Azure Virtual Machines, Cloud Services, Storage, SQL Database, Web Sites, and Data Transfers hosted from Brazil South will be offered at a discount during the preview period. "
Brazil joins other countries in hosting the center