As was the case with the previous government, the current administration seems very caught up in making announcements that do not appear to be based on any well-thought-out policy or even a semblance of a cost-benefit analysis, not to mention the environmental and social impacts of their announcements.
Given the surprising, immediate negative reaction to the announcement last Friday that T&T can look forward to billions in foreign investment from three potential projects, it would be a shame if the two data-centre projects go the way of the proposal by the late chairman of Sandals Resorts International, Gordon ‘Butch’ Stewart to operate two resorts in Tobago.
I support the establishment of new data centres in T&T, as this would be one path to diversifying the economy, generating foreign exchange earnings and employing hundreds of locals. But this column's support of data centres, this country already has at least five, is conditioned on the two new projects meeting the criteria of positive returns to the country, transparency and national acceptability.
It is great that we can boast that T&T is the first country in the Caribbean that is seriously thinking about encouraging investments in new data centres, but the population has to agree that that is an appropriate use of our resources, including land, labour and capital.
For the new data centres to be set up here, the Government needs to answer some difficult questions AND it needs to consult the national and fenceline communities.
The Caribbean Media Corporation reported on Monday, that an online petition started by Syam Nath, a Trinidadian-based bio-acoustician and conservation researcher, calling for the suspension of approval for the project, had received nearly 5,000 signatures in less than 24 hours ago.
The researcher argued that no environmental impact assessment, water availability study, cooling strategy or drought resilience plan have been publicly released and that the Government should “suspend approval of large-scale AI data centres until comprehensive environmental water resource and infrastructure assessments have been completed, independently reviewed, as well as made available for public consultation.
“This petition does not oppose technology or investment. It calls for responsible planning, transparency, and evidence-based decision-making. Access to reliable drinking water is a fundamental public necessity and should not be placed at risk by industrial development without rigorous independent assessment.”
The petition, and the explanations for it, are of course quite premature, because an MoU is a preliminary agreement or a framework for how negotiations, to arrive at the final agreement, will proceed.
But a report in the New York Times yesterday (Wednesday) indicated that there is growing opposition to data centres in the US. The founding editor of Heatmap, Robinson Meyer, said the publication, which covers climate change, decarbonisation and energy transition, started asking about AI data centres as well.
“Every quarter, we poll about 4,000 Americans, and we ask: would you support or oppose a data center being built near where you live? We asked that question in August of last year, and Americans were very split. They were about 43 per cent in support and 42 per cent against.
“We asked again in the spring, and this time, 21 per cent of Americans said they would support a data centre being built near where they live, and 71 per cent said they would oppose it.”
Context is everything
Last Friday, July 10, the new US Chargé d’Affairs in Port-of-Spain, Philip Kern, announced that on that day, the Cabinet of Trinidad and Tobago approved Memorandums of Understanding with two American companies: Pinnacle Steel and Vanadium, and Hummingbird AI.
In the prepared text of his speech, Mr Kern added, “These agreements create the framework for almost US$2 billion in investment and hundreds of jobs at the Point Lisas Industrial Estate.”
Prime Minister Kamla Persad-Bissessar also spoke at the function, which was held at the Hyatt Regency to mark the 250th anniversary of the Declaration of Independence in Philadelphia on July 4, 1776.
In her speech, the T&T Prime Minister said, “Earlier, before I came here, we signed three agreements with three US companies, who will want to come and partner with us. They are going to invest here to work on data centres, two for data centres, and one to help us rejuvenate and rebuild our steel industry. So, can I thank your companies as well, Charge, for investing in Trinidad and Tobago.”
The first aspect of the slightly confused messaging from that auspicious event is that Mr Kern, in the prepared text of his speech, said the T&T Cabinet approved MoUs with two American companies, Pinnacle Steel and Vanadium, and Hummingbird AI. But, in her comments, Mrs Persad-Bissessar referred to the signing of three agreements with three US companies.
In a news release dated July 10, the Office of the Prime Minister clarified that the Government entered into a data-centre development MoU with Ernst & Young LLP to establish “a framework for collaboration on the development of large-scale data centres and supporting infrastructure, and that EY “intends to partner with third parties in the development of a 300MW data centre.”
A second MoU, according to the Office of the Prime Minister, was signed with Hummingbird AI Holdings LLC to establish “a framework for preliminary cooperation, due diligence and coordination in relation to a Proposed 150MW AI infrastructure and data-centre facility, with potential longer term expansion to 500MW.
In the last Sunday Guardian, July 12, Minister of Public Utilities, Barry Paradath, said the data centres would be located in a special economic zone (SEZ) in Debe (not Point Lisas) and that the Government has taken into consideration the impact of data centres on the water supply to Debe and the surrounding area would not be impacted.
The real issue for the establishment of data centres here is not the supply of water, but the supply of electricity and whether T&T will have to increase its power generation capacity to accommodate two data centres.
Who is Hummingbird AI Holdings?
In a post on Monday on Facebook, a gentleman named Pearce Robinson, who describes himself as an advocate, wrote that the Memorandums of Understanding were signed at the US Embassy in Port-of-Spain, and that setting gave the announcements an immediate appearance of credibility.
“But an embassy ceremony is not a substitute for corporate transparency, financial verification or technical due diligence. Hummingbird AI Holdings has been described as a Florida-headquartered company proposing a 150 MW AI infrastructure and data-centre facility. Yet basic public searches reveal no readily verifiable company history, established website, identifiable leadership team, previous projects or visible track record in developing infrastructure of this scale.”
Had Mr Robinson done a simple Google search for Hummingbird AI Holdings, he would have discovered a news release, dated July 10, from Plipdeco, the landlord of the Point Lisas Industrial Estate, headlined ‘Plipdeco to play a pivotal role in three landmark development initiatives.’
The Plipdeco news release states, in part, “Hummingbird AI Holdings LLC, signed by managing member Marc-Kwesi Farrell, provides for cooperation on a proposed 150 MW artificial-intelligence and data-centre facility, with potential expansion to 500 MW and initial operation targeted for the first quarter of 2028.”
Mr Farrell was appointed as a non-executive director of Massy Holdings in February 2022 and is the founder and CEO of Ten To One Rum.
According to the Massy bio of him, before launching the rum brand, he held a number of roles at Starbucks as its youngest vice president, leading the ecommerce business, US Retail Lobby and Beverage Innovation, during his tenure.
“This followed earlier professional stints at Fidelity Equity Partners and Bain & Co. Farrell attended MIT at age 16, followed by Cambridge University and Harvard Business School,” according to the Massy bio. The bio also describes Farrell as an active angel investor, which is how, one imagines, he became interested in the idea of getting involved in a data centre in T&T.
Although he comes from a very distinguished T&T family, I do not imagine Mr Farrell has the luxury of having millions of US dollars in investments that can be liquidated to fund the start-up equity for Hummingbird AI Holdings. But, given his education, work experience and entrepreneurship, he would have a network of people who would be willing to invest in his start up.
The point is this: In order to prevent an escalation of negative comments, such as those made by Mr Robinson, it behooves Mr Farrell to make public his partners and associates in Hummingbird AI, how much a 150MW data centre will cost and how he plans to raise the funds to build the centre if he is given the green light.
