Trinidad and Tobago data centers: U.S. firms sign megawatt deals amid water crisis

Trinidad and Tobago data centers have entered a new era as the government inked memorandums of understanding with two U.S. firms, sparking debate over power draw and water use. The deals, announced by Prime Minister Kamla Persad‑Bissessar on Friday, pair a 300 MW project with Ernst & Young and a 150 MW AI‑focused facility with Hummingbird AI Holdings.

Trinidad and Tobago data centers: Scope and Stakeholders

The Ernst & Young pact outlines a collaborative framework to develop a ↑ 300 MW data hub, while Hummingbird’s agreement sets the stage for preliminary due‑diligence on a 150‑megawatt AI infrastructure.

Environmental groups have already sounded alarm.

“The government is trying to present something which looks like development, but which is not development,” warned activist Dr. Wayne Kublalsingh to AP News.

Trinidad and Tobago has long wrestled with intermittent water supply; many households rely on tanks because tap water can be as scarce as once a week. Adding data‑center cooling loads could exacerbate a system already ↓ 3% under strain.

Proponents argue the projects will generate ↑ 5,000 jobs across construction, operations and ancillary services, and signal a pivot toward a digital economy still reeling from the pandemic disruptions.

In parallel, the government signed a third memorandum with Pinnacle Steel and Vanadium Corporation, opening talks to revive a local steel plant—a move the prime minister described as “investment that will rejuvenate our industry.”

U.S. involvement was facilitated by diplomatic channels, a point underscored during a U.S. Independence Day ceremony at the American Embassy, where Persad‑Bissessar highlighted the strategic partnership.

Correction: An earlier dispatch misstated the capacity of the Ernst & Young project as 200 MW; the correct figure is 300 MW.

Analysis by Arthur Sterling (Macroeconomics Editor).