Senior Political Reporter
Former energy minister Stuart Young SC says it is a timely warning for Trinidad and Tobago that New York yesterday became the first US state to halt the construction of large new data centres because of concerns about their impact on electricity costs, water supplies and host communities.
Young was referring to a Reuters report published yesterday stating that New York has imposed a one-year moratorium on the construction of large new data centres as concerns grow that the facilities driving the artificial intelligence boom are increasing power costs, straining water supplies and burdening local communities.
Last week, Prime Minister Kamla Persad-Bissessar announced the signing of memorandums of understanding to begin discussions on large-scale data centre development and supporting infrastructure, including a proposed 300-megawatt facility as well as a 150MW artificial intelligence infrastructure and data centre project, with potential long-term expansion to 500MW.
However, the Reuters report noted that New York is now at the forefront of a growing national debate in the United States over how to manage the infrastructure required to support artificial intelligence.
“While technology companies are racing to build new data centres, lawmakers and regulators in dozens of states are weighing measures to limit their effect on electricity grids, utility bills and local communities,” the report stated.
New York’s one-year construction ban will apply to data centres using 50 megawatts or more.
The report added: “The expansion of data centres in the US is driving up power demand—and electricity bills—across large swaths of the country, drawing local and political backlash. Only one in three Americans approve of the fast pace of data centre construction and most would oppose building one in their own community, according to a recent Reuters/Ipsos poll. Dozens of state legislatures have introduced bills to rein in the effects of data centres on power bills and the environment. New York is the first to enact a full moratorium.”
New York Governor Kathy Hochul said that “as data centre development threatens to hike up utility bills, deplete natural resources, and create uncertainty for New Yorkers,” it is her responsibility to take action.
Commenting on the report yesterday, Young said: “This is a timely warning for Trinidad and Tobago. Our electricity grid and water production cannot support any large-scale (hyperscale) data centres. We also need to know what concessions are being asked for.
“Our electricity is highly subsidised and T&TEC has been unable to pay NGC for the gas used to generate electricity for years. Billions of dollars are owed.
“There are many legitimate questions and concerns that require answers and details to be provided by the Kamla Persad-Bissessar government, including who is really winning in this.”
Several business operators, including some in south Trinidad, also called for town hall meetings to allow members of the public to obtain information and better understand the implications of the proposed projects.
“While the plans sound interesting, there should be independent experts informing the public. People should be told what the environmental effects of these projects will be, right down to every single carbon atom, and then let citizens decide. Where are the views of the environmentalists, the EMA and others?” the business operators said.
They added: “We’re seeing reports from the US where issues have arisen over projects like these, including this week in Georgia, where homeowners were faced with selling their properties or having them acquired by the state to help power AI data centres. Citizens of Trinidad and Tobago would appreciate being able to hear the facts from experts. Let people ask the questions they want about anything that will be placed in their community. If we have to live with it, we have to know about it.”
