Trinidad and Tobago has inked agreements with US companies to establish large data centers, a move that has immediately sparked significant concerns regarding potential energy consumption and environmental repercussions across the Caribbean nation.
The memorandums of understanding were formally signed on Friday, involving Florida-headquartered Hummingbird AI Holdings and New York-based Ernst and Young LLP.
These represent the first such agreements with a Caribbean country, according to a statement from the office of Trinidad and Tobago’s Prime Minister Kamla Persad-Bissessar.
The deal with Ernst and Young LLP will set out the 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 facility.
Separately, the agreement with Hummingbird AI Holdings establishes a framework for "preliminary cooperation, due diligence and coordination" for a proposed 150 MW AI infrastructure and data center facility.
These deals quickly raised online questions about the potential environmental impact of the centers.
Renowned social activist Dr. Wayne Kublalsingh told The Associated Press he was concerned about the energy consumption by the planned data centers.
He asserted, "The government is trying to present something which looks like development, but which is not development."
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, consuming an estimated 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, the report further noted.
In a related development, Trinidad and Tobago's government signed a third agreement with another American company, Pinnacle Steel and Vanadium Corporation, which recently acquired a local iron and steel plant.
Government officials stated that this agreement allows for further talks on recommissioning and operating the plant. The government said these three initiatives, combined, are expected to generate over 5,000 jobs.
The prime minister of the twin-island republic has been a strong supporter of the administration of Donald Trump, and her office indicated that the U.S. government played a role in facilitating the parties involved in the agreements.
"They’re going to invest here to work on data centers, two for data centers, and one to help us rejuvenate and rebuild our steel industry," Persad-Bissessar said Friday night, speaking at a U.S. independence anniversary celebration ceremony hosted by the U.S. Embassy in Trinidad and Tobago.
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