Port of Spain— Trinidad and Tobago has signed agreements that pave the way for American companies to begin preliminary work to install large data centers in this Caribbean country, which has raised concerns about possible energy consumption and environmental impact.
The memorandums of understanding with Hummingbird AI Holdingsbased in Florida, and Ernst and Young LLPbased in New York, were signed on Friday, according to a statement from the office of Trinidad and Tobago Prime Minister Kamla Persad-Bissessar. These are the first agreements of this type with a Caribbean country.
The agreement with Ernst and Young LLP will establish the framework for collaboration to develop large-scale data centers, and the company plans to “partner with third parties for the development” of a 300-megawatt data center, according to the statement.
The agreement with Hummingbird AI Holdings establishes the framework for “preliminary cooperation, due diligence and coordination” of a 150 MW data center and AI infrastructure installation project.
Data centers are described by a figure in megawatts to indicate their electrical power capacity when operating at full load. The 300 MW center has a capacity of 300 million watts of electricity.
The deals raised questions online about the centers’ environmental impact.
Renowned social activist Dr. Wayne Kublalsingh told The Associated Press that he was concerned about the energy consumption of the planned data centers.
“The Government is trying to present something that looks like development, but is not,” he said.
Trinidad and Tobago has long faced chronic water shortages and intermittent supplies, raising concerns that large data centres, which require large amounts of water, could put additional pressure on an already overstretched system.
Most of this country, made up of two islands, operates on water supply schedules set by the state utility company. Most homes have water tanks, as the supply from taps can occur only once a week. In some cases, several communities have gone weeks without the state company supplying them with water.
Data centers could account for nearly 3% of global electricity consumption projected by 2030, at 935 trillion watt-hours, according to a recent report from the University of United Nations. The environmental footprint of these centers already rivals that of some of the largest countries in the world, according to the report.
Electricity supply in Trinidad and Tobago has improved over the years. Although occasional power outages still occur in different parts of the country, they are rare.
The Government of Trinidad and Tobago signed a third agreement with another US company, Pinnacle Steel and Vanadium Corporation, which recently acquired a local iron and steel plant. Government officials noted that the agreement allows talks to continue to restart the plant.
The Government indicated that the three initiatives, together, are expected to generate more than 5,000 jobs.
The prime minister has been a staunch defender of the Trump Government. His office has stated that the United States Government has played a mediating role between the parties involved in the agreements.
“They are going to invest here to work on data centers – two for data centers – and one to help us revitalize and rebuild our steel industry,” Persad-Bissessar said Friday night at a ceremony celebrating the anniversary of US independence hosted by the US embassy in the country.