While T&T battles crime with yet another State of Emergency, the developed world is racing ahead at light speed to build futuristic infrastructure that blurs the lines between science fiction and reality. I sincerely hope T&T eliminates its developmental challenges before it is left far behind by the changing global landscape.
Mark Zuckerberg announced a proposed new data centre, Hyperion, named after the Greek titan whose name means “he who walks on high.” The data centre will be located in Louisiana and cover an area the size of Manhattan. Zuckerberg’s Meta aims to scale out the data centre to a capacity of five gigawatts of power. By comparison, T&T has 2.13 gigawatts of power generation capacity.
The data centre is estimated to cost US$10 billion, which is more than the national budget of T&T in a fiscal year. These comparisons are given to help readers understand the scale of investment in AI infrastructure, as trillion-dollar companies are racing to outcompete one another to claim dominance in this new field of technology.
An article by international law firm Vinson & Elkins discussed the massive power consumption of new AI data centres as follows:
“AI data centres consume eight times the power of non-AI-powered data centres. And while modern data centres have become more efficient, the rate of power efficiency gains is decelerating. Rising consumption will drive significant cost increases, stemming from demand growth for power as a commodity and from demand for the electric grid to deliver power to data centres.
In 2022, data centres accounted for about 2.5 per cent of U.S. electric demand. By 2030, that figure could rise to 20 per cent, with AI data centres accounting for three-quarters of the demand. If forecasts hold, this growth will come alongside skyrocketing demand for new transmission facilities, as the electric grid faces growing demand and changing needs from robust U.S. manufacturing, electric vehicle charging, and the shifting generation mix, among other strains.“
Most AI data centres are powered by natural gas, which is good news for T&T in the short term, since demand for natural gas will remain high and keep international oil companies drilling for gas in T&T. In the long term, however, T&T will inevitably run out of oil, gas and fossil fuels and have to pivot to new industries to survive.
Governance & the digital economy
As I highlighted in a previous article, software industries such as video games have combined industry revenues as high as US$522.46 billion. Software solutions are a US$700 billion market that will reach over 1 trillion by 2030.
T&T has a highly developed telecommunications industry with high-speed 4G and 5G mobile networks and fibre optic connections available across much of the country. Data from the US International Trade Administration states as follows:
“ICT accounts for 3.7 per cent of GDP, primarily in software development, web design, data processing, ICT training, and software solutions. With 142 mobile phone subscriptions per 100 people, T&T has one of the highest penetrations of mobile phone coverage in the world. At the start of 2023, 79 per cent of the total population had internet subscriptions.”
Thanks to the competitive market between telecommunications companies, T&T has decent infrastructure that can be the basis of providing ICT services to local and foreign markets. The Government of T&T would benefit from storing most of its data in servers on T&T soil to prevent proprietary information from being subject to the laws of foreign governments and the policies of tech giants who have shown their willingness to sacrifice user privacy for profit.
T&T urgently needs a comprehensive data sovereignty and data privacy framework to protect our citizens’ privacy and encourage local software developers to create solutions that operate within our local framework.
Inevitably, T&T will need to update its data protection and cybercrime laws and, in a few years, pass AI legislation based on best practice that is only now emerging out of the European Union and the United States.
Hopefully, once a good regulatory framework is established, the Government of T&T can attract investments from trillion-dollar tech companies like Nvidia, Microsoft and Google, which will bring in much-needed foreign exchange and diversify our economy away from a dependence on oil and gas.
Just as the last few decades were marked by the social changes and economic growth brought by the adoption of the Internet, the future will be marked by AI adoption.
Hopefully, after this State of Emergency is resolved, Parliament can focus on pushing T&T into the future instead of fighting the same battle with criminal gangs. When T&T’s crime rate reached 386 murders per annum in 2005, Nvidia was only worth US$6 billion. Today, Nvidia is worth US$4 trillion due to its success in pioneering the hardware side of the AI revolution. The need to spend resources and legislative time on the crime crisis is holding T&T back from catching up with the developed world.