Would Trinidad and Tobago be better off having a data centre or not having one?
I think that T&T will be better off having one, rather than bypassing the opportunity altogether.
There are a lot of problems with data centres. The controversy that surrounds their establishment in various countries makes that clear. But you can’t have digitalisation and AI-driven infrastructure without data centres. And AI-driven digitalisation will proceed apace and data centres will have to be built. Complete avoidance of investment in a data centre will mean missing out on the foundational infrastructure of the digital economy.
Why do we have a Ministry of AI, if not to advance our economy and society to digital efficiency and competence and to more effectively engage a global digital economy and value chain? Why would we want to oppose the foundational infrastructure of the digital economy if we see value in digitalisation? Especially as we are collaborating with India on the roll-out of the Digital stack.
There are good reasons to question, to challenge and to demand answers, though. But no real reason to oppose unless the problems that data centres pose and create are not acknowledged and addressed transparently by the Government.
The thing that made the Sandals investment collapse is not the project itself or any of the problems it might have presented, nor even the questions in
people’s minds. The thing that killed it was the lack of transparency, about a secret MoU, about procurement and the extent of public (ie taxpayer) financing, lack of clarity about ownership, management and returns and a lack of clear answers on environmental impact.
The Government must be transparent on the solution to electricity and water demand and its implications; on the environmental concerns and on the bona fides of the investor or investors; and unequivocal about Government’s involvement and the issue of taxpayer money.
If these hurdles are overcome, then the benefits of the project can be outlined and discussed.
But if the Government proceeds to strategically and conscientiously establish a data centre, and uses a targeted roadmap taking into account constraints and attendant problems, then by taking a calculated niche approach, our country will be able to maximise economic value, while, at the same time, it can take steps to strictly mitigate environmental risks.
Why do I take the view that we should leverage the opportunity, mitigate the risks, take a calculated niche approach and make it happen? Because data centres are the bedrock of digital sovereignty, cloud computing and economic modernisation.
And it would be a mistake to miss out.
Not having our own data centre will mean for this country, continued reliance on foreign Cloud infrastructure (US), outbound financial costs and slower data processing. The significance of this is that our tech ecosystem will be stifled. But if T&T has its own data centre, local fintech will thrive, government digitalisation efforts should accelerate and AI start-ups will have a better chance of success. Because our data latency (slow data) issues would have been solved, a data hosting business can be developed here.
Except for the construction phase, a data centre will create few jobs but where it will create value is in data sovereignty and economic diversification higher up the value chain. With data centre capacity, we can host critical regional, financial, governmental and telecommunications data. And, in this way, T&T can become a secure, redundant data hub for the wider Caribbean region.
One thing a data centre can do is to anchor a broad ecosystem of cybersecurity, network engineering and cloud management professionals. In a big country, that would not be a big deal but in a country such as ours, it would mean new high-skilled service businesses and new industries.
A well-thought-out, sustainable development strategy for T&T requires zero drain of existing national resources from our citizens. It also requires a closed-loop model which binds the investor to certain things. For example, the company must generate its own renewable power. This is not only about electricity but about natural gas as well. The data centre must consume zero domestic water. The company must agree to fully rehabilitate the site after a 15-year run.
Remember, a data centre will create just a few direct jobs. So, our principal gains from the data centre will be leveraging computer power to digitise our T&T economy. And diversifying into tech services for regional and wider export.
So, let’s not just be smart about it but wise as well.
