Trinidad and Tobago signs data center agreements with US companies to build regional AI compute hub in Caribbean.

Trinidad and Tobago has signed memorandums of understanding with US companies to establish large data centers—the first such agreements the Caribbean nation has entered, according to a statement from the office of Prime Minister Kamla Persad-Bissessar. The deals, formalized Friday, involve Florida-headquartered Hummingbird AI Holdings and New York-based Ernst and Young LLP. However, the announcements have immediately prompted significant concerns regarding energy consumption and environmental impact.

Under the agreement with Ernst and Young LLP, the company will develop a framework for collaboration on a large-scale 300-megawatt data center facility, with plans to partner with third parties in its development. Separately, Hummingbird AI Holdings will establish a framework for "preliminary cooperation, due diligence and coordination" on a proposed 150 MW AI infrastructure and data center facility.

Social activist Dr. Wayne Kublalsingh expressed concern about the energy demands of the planned centers, telling The Associated Press: "The government is trying to present something which looks like development, but which is not development." His concerns are particularly acute given Trinidad and Tobago's chronic water shortages and intermittent supply, raising questions about whether water-intensive data center operations would strain an already overstretched system.

The global energy footprint of data centers underscores these concerns. According to a recent United Nations University report, data centers could account for nearly 3% of the world's projected electricity use by 2030, consuming an estimated 935 trillion watt-hours. The report noted that the environmental footprint of data centers already rivals some of the world's largest countries.

In a parallel development, Trinidad and Tobago's government signed a third agreement with American company Pinnacle Steel and Vanadium Corporation, which recently acquired a local iron and steel plant. The agreement allows for further discussions on recommissioning and operating the facility. Government officials stated that these three initiatives combined are expected to generate over 5,000 jobs.

Prime Minister Persad-Bissessar, a strong supporter of the Trump administration, indicated that the US government played a role in facilitating the agreements. Speaking Friday night at a US independence anniversary celebration hosted by the US Embassy, she said: "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."