Economist Dr Vaalmikki Arjoon: AI, Data Centres And Steel Plant Agreements Could Boost Economy
Economist Dr Vaalmikki Arjoon says the three Memoranda of Understanding executed by the Government with leading United States organisations on Friday could significantly boost Trinidad and Tobago’s economy.
On Friday, the Government executed three MOUs with leading United States organisations, establishing frameworks for cooperation in large-scale data centre development, artificial intelligence infrastructure, and the recommissioning of the iron and steel plant at Point Lisas for strategic metals production.
Speaking on the Trinidad and Tobago Today Morning Show, Dr Arjoon said the initiatives build on the country’s existing strengths while creating opportunities in emerging industries.
« So on the digital side, we’re talking about a 300 megawatt data centre and a 150 megawatt AI facility that could eventually scale to about 500 megawatts. Now that is serious infrastructure. »
Dr Arjoon believes Trinidad and Tobago is well positioned to become a regional hub for AI and digital services.
« And given our telecommunication links, our skills, our industrial base, the English-speaking workforce that we have, the skilled workforce and the location near the Caribbean and near the American markets, there is a real case for T&T positioning itself as a regional hub for this. There is a real case for us earning foreign exchange by selling computing and AI services to international clients. »
He added that the benefits could extend beyond the investors themselves, creating opportunities for local entrepreneurs and businesses.
« Local entrepreneurs could offer cybersecurity services, cloud computing, software development, data analytics. Existing firms, they could tap into the cloud computing capacity to build think-tech platforms. So you’re looking at spillover effects into building the think-tech industry, health tech applications, logistic systems. »
However, Dr Arjoon cautioned that significant work remains before the projects can move forward.
« Each investor, they would then now have to work out whether these projects are technically feasible, financially profitable and also, of course, environmentally sound because a lot of these companies internationally have their ESG mandates to follow. Now for the data centres, what that means is digging into electricity supply, the grid capacity in T&T, telecoms, cooling, land, water availability as wel, that’s an important aspect, cybersecurity and customer demand. »
As for the recommissioning of the iron and steel plant at Point Lisas, Dr Arjoon noted that due diligence must take place.
« For the steel plant side, it’s about assessing the condition of the existing facility. The equipment, what the refurbishment cost is going to be like, raw material sourcing and whether there is, at the end of the day, a real market for what they produce. »
Dr Arjoon also stressed the importance of the Government negotiating arrangements that deliver tangible benefits to T&T.
« If even one of them land very well, it will pull further investment behind them and create clusters of related businesses, jobs, services. A transformation that we would’ve seen being bigger than what would have happened in the last three decades, if not more. »
The Government said these initiatives represent a combined potential investment exceeding US$5 billion over the coming years and are expected to generate in excess of 5,000 new jobs.
