Trinidad signs data centre deals worth potential US$5 billion with US firms

The Government of Trinidad and Tobago has signed three Memoranda of Understanding (MOUs) with U.S. companies that could pave the way for more than US$5 billion in investment, including two large-scale data centre projects that officials say could help diversify the country's economy and create more than 5,000 jobs.

The agreements, signed Friday under the administration of Prime Minister Kamla Persad-Bissessar, establish frameworks for cooperation and due diligence on projects involving data centres, artificial intelligence (AI) infrastructure and the recommissioning of the Point Lisas iron and steel plant.

Foreign and CARICOM Affairs Minister Sean Sobers signed the MOUs on behalf of the government.

One agreement with Ernst & Young LLP (EY) establishes a framework to develop a 300-megawatt data centre using the company's Energy to Intelligence (E2I) platform.

A second MOU with Hummingbird AI Holdings LLC outlines plans for a proposed 150-megawatt AI infrastructure and data centre, with the potential to expand to 500 megawatts. Initial operations are targeted for the first quarter of 2028, subject to due diligence and the project moving forward.

The third agreement, with Pinnacle Steel and Vanadium Corporation, concerns the refurbishment and recommissioning of the iron and steel plant at Point Lisas. The government said the project could also position Trinidad and Tobago as a supplier of vanadium, a strategic metal used in aerospace and defense industries, with the potential to meet up to 50% of U.S. demand if fully developed.

PLIPDECO, which owns the property where the plant is located, is also a party to the agreement.

What is a data centre?

A data centre is a highly secure facility that houses thousands of computer servers used to store, process and distribute digital information. They power everything from cloud computing, online banking and streaming services to artificial intelligence applications, government databases and business operations.

The facilities require massive amounts of electricity to keep servers running continuously and significant cooling systems to prevent equipment from overheating. AI-focused data centres typically consume even more power than traditional facilities because of the intensive computing required to train and operate AI models.

Potential economic benefits

Supporters say attracting hyperscale data centres could help Trinidad and Tobago diversify beyond its oil and gas industry while creating new opportunities in the technology sector.

Large facilities require construction workers during development and create permanent jobs in engineering, cybersecurity, network management, electrical maintenance and facility operations. They can also attract related businesses, including cloud computing providers and technology firms.

The government said the three proposed projects together could generate more than 5,000 skilled and semi-skilled jobs if they proceed beyond the planning stage.

Environmental and infrastructure concerns

The announcement has also sparked debate over whether Trinidad and Tobago has the infrastructure needed to support such large facilities.

Data centres are among the most energy-intensive industrial facilities in the world, with AI centres requiring especially high electricity demand. Many also consume large quantities of water for cooling systems, although usage varies depending on the technology employed. Global electricity demand from data centres is projected to continue rising sharply over the remainder of the decade.

Those concerns are particularly relevant in Trinidad and Tobago, where some communities continue to face intermittent water supply. Critics have questioned whether additional demand from large data centres could place further strain on existing water and electricity systems without major infrastructure upgrades.

The agreements signed Friday are non-binding frameworks. Each project must still undergo technical, commercial and regulatory due diligence before any final investment decisions are made.

The government thanked the United States for helping facilitate the partnerships.