US Companies Move to Put Data Centers in Caribbean

Trinidad and Tobago has signed agreements clearing the way for US companies to begin groundwork for installing large data centers in the Caribbean nation, sparking concerns about potential energy consumption and environmental impacts. The memorandums of understanding with the Florida-headquartered Hummingbird AI Holdings and New York-based Ernst & Young were signed on Friday, according to a statement from the office of Prime Minister Kamla Persad-Bissessar. These are the first such agreements with a Caribbean country, the AP reports.

The deal with Ernst and Young will set out a framework for collaboration on developing large-scale data centers, with the company planning to "partner with third parties in the development" of a 300 megawatt data center, the statement said. The agreement with Hummingbird AI Holdings sets up the framework for "preliminary cooperation, due diligence and coordination" for a proposed 150 MW AI infrastructure and data center. Trinidad and Tobago's government signed a third agreement with another American company, Pinnacle Steel and Vanadium Corp. The government said the three initiatives, combined, are expected to generate over 5,000 jobs.

Opposition to data centers generally has focused on the environmental impact. Trinidad and Tobago has long grappled with chronic water shortages and intermittent supply, raising concerns that large, water-intensive data centers could place additional strain on an already overstretched system. Data centers could account for nearly 3% of the world's projected electricity use by 2030, with 935 trillion watt-hours, according to a recent United Nations University report. The environmental footprint of data centers already rivals some of the world's largest countries, according to the report.