Trinidad and Tobago signs U.S. data center accords amid water concerns
The government says the agreements could bring data center and steel projects, while critics warn about electricity and water demand.
By Hana Yoshida · Markets Reporter
3 min read
Trinidad and Tobago has signed agreements with two U.S. companies to prepare for large data center projects, a move that could bring new investment but has drawn concern over energy use and water strain. The office of Prime Minister Kamla Persad-Bissessar said the memorandums of understanding were signed Friday with Hummingbird AI Holdings and Ernst and Young LLP.
The agreements are the first of their kind involving a Caribbean country, according to the government statement. They come as demand for artificial intelligence infrastructure has pushed companies and governments to seek sites for power-hungry computing facilities.
The agreement with Ernst and Young LLP, based in New York, establishes a framework for cooperation on large-scale data centers, the prime minister’s office said. The company plans to work with third parties on developing a 300-megawatt data center, according to the statement.
A separate agreement with Florida-based Hummingbird AI Holdings covers preliminary cooperation, due diligence and coordination for a proposed 150-megawatt AI infrastructure and data center facility, the government said. Data center capacity is commonly described in megawatts to show how much electrical power a facility can use at peak load.
The plans quickly prompted public questions about environmental effects. Wayne Kublalsingh, a social activist in Trinidad and Tobago, told The Associated Press that he was worried about the amount of electricity the centers could require.
Kublalsingh told AP the government was presenting the projects as development, while he argued they did not amount to development. The government has not detailed water requirements for the proposed facilities in the reported agreements.
Water supply is a sensitive issue in Trinidad and Tobago. AP reported that the country has dealt for years with chronic shortages and intermittent service, with many areas operating under schedules set by the state utility.
Many homes rely on storage tanks because tap water can be available as infrequently as once a week, according to AP. Some communities have gone weeks without water from the state company, AP reported.
Global concern about data centers has grown alongside AI use. A recent United Nations University report cited by AP said data centers could account for nearly 3% of projected global electricity consumption by 2030, equal to 935 trillion watt-hours.
AP reported that the same U.N. University report said the environmental footprint of data centers already compares with that of some of the world’s largest countries. In Trinidad and Tobago, electricity service has improved over time, though AP reported that occasional outages still occur in parts of the country.
The government also signed a third agreement with Pinnacle Steel and Vanadium Corporation, another U.S. company, according to officials. Pinnacle recently acquired a local iron and steel plant, and officials said the agreement permits further talks on restarting operations there.
The prime minister’s office said the three initiatives together are expected to create more than 5,000 jobs. Persad-Bissessar, who has supported the Trump administration, said at a U.S. Embassy event Friday night that two of the investments were for data centers and one was intended to help rebuild the steel industry.
Her office said the U.S. government helped bring together the parties involved in the agreements.
This story draws on original reporting from Fortune.