In full rise of artificial intelligence (AI) Guatemala has the potential for the construction of data centers or data centers. This was one of the conclusions of Syed Natif Nawaz, CGO of Aurum Equity Partners, during the event Futureedge Summitheld this Thursday in the Guatemalan capital. For Nawaz, they are already in the fourth generation of architecture of data centers, which can be cataloged as artificial intelligence factories.
According to Spain dc, The Association of Data Centers in Spain, a Data Center is a specialized space that brings together very powerful equipment to store, protect and process large amounts of data in a safe and controlled environment
Currently, regions such as Singapore or Ireland are no longer granting permits for the construction of data centers, because they have exceeded their capacity. The data set forth by Nawaz indicates that the global data centers market has a capacity of 43 GW, with a vacancy of 4.9%. The American continent has grown 3.4% in the total capacity.
Nawaz explained that the country has five incentives: A strategic geographical position, abundant renewable energy, growth of the technological ecosystem, political stability and competitive costs. In addition, compared to countries such as Mexico and the United States (particularly in Florida), Guatemala is 80% carbon freehe said. “It is just as good that having a data center in Miami,” said the CGO.
According to Juan Carlos Zapata, executive director of Fundesa, we seek to make an investment of around US $ 300 million. Nawaz indicated that this could turn Guatemala into the sustainable option that differs from traditional hubs, with 45% less operating costs. Zapata explained that this is Aurum’s first visit to the country.
A new data center
Nawaz points out that data centers are currently under construction that can sustain additional 13 GW, and it is planned to build 66 GW more, which would increase the vacancy to a total of 12.4%.
He was aware that Guatemala could become a digital hub to connect North and South America. “It has very good interconnection capabilities, both with Miami, Florida, and with all the countries of South America,” said the CGO, who added that this makes the country an ideal strategic position for the new generation of artificial intelligence data centers. According to María Zaghi, commercialization of Campustec, in Guatemala there is still no artificial intelligence data center.
Data centers, according to Julio Pallavicini, executive director of EY Global Consulting Services, can have three functions: to grant services in the cloud – such as Microsoft and Google – that a company has a company for internal storage, or serve as a hosting for other companies. Currently, according to Pallavicini, data centers already operate in the country. Companies interested in entering a data center that functions as a hosting could be those that do not have sufficient capital or do not seek to invest in their own data center, he explained.
Pallavicini mentions that in order to serve a data center, they are required Three professional profiles: data engineers, data scientists, and engineers and architects of AIbeing artificial intelligence.
More energy
Guatemala has different types of renewable energy, which also makes the country attractive for the attraction of investments, especially in the technological field. Aurum’s CGO argued that the infrastructure of the Electricity represents a challenge for data centers. “In Guatemala they have geothermal, solar and even hydroelectric energy. They are different types of energy that can be mixed. It is a unique advantage that the country has for its location and is an advantage for any data center,” he said.
Dennis Gallagher, CEO of Bold Capital Group, during the event, said that energy is an important factor for any large -scale data center. According to Gallagher, the country has solar energy, which is useful and economical. He also said that in the country there are various renewable sources that can be used.
On the other hand, Juan Carlos Zapata, who was also part of the panelists in the event, said that about 70% of the country’s energy comes from renewable sources. “We have a volcanic chain with a large investment that could be made in that process,” he said.
For Zapata, Guatemala has multiple opportunities; However, he pointed out as necessary the facilitation of procedures. He mentioned the Ministry of Environment and Culture as entities that must expedite their processes. In addition, he referred to the municipalities, responsible for granting construction permits. “We see solar parks that have not yet achieved the municipal construction license, and that is due to pure negligence of some mayors,” he said.
Challenges to overcome
To achieve an investment such as a data center, Juan Carlos Zapata listed three essential points: energy, human capital and infrastructure, both road and port and airport. In the case of a data center, he argued that the most necessary thing is to have more trained people, airports capable of connecting executives, and human capital with the best technical skills.
Guatemala has a goal of capturing around US $ 1,800 million, which could reach US $ 3 billion in the coming years, according to Zapata. For this to happen, the executive director of Fundesa declared the approval of the Priority Road Infrastructure Law and reforms to the Public-Private Alliances Law necessary. In addition, he mentioned that the port system law and the monitoring of the signing of an agreement between the Guatemala government and the United States Army Engineers are necessary to expand the ports.
Nawaz said that an important point is to improve the viability of public-private projects, since, they said, they are an essential element to succeed. “Otherwise, it is not easy for investors to come here,” he said. “We can bring technology, we can bring money and experience, but without local support in these areas, any investment will be a failure.”
Dennis Gallagher expressed his intention to boost various public-private projects. “We need the legislation to change so that we can come to work here,” he said, adding that they cannot provide what they want without the security of policies and regulations.
Invest in Guatemala
Juan Monge, vice president of Fundesa, said that Guatemala is a strategic point for the growth of companies, since it has a resilient and stable economy. In addition, he indicated that the country maintains controlled inflation and enjoys proximity to the US market.
Among the strengths he mentioned, he highlighted the country’s commitment to the attraction of investments and the existence of legal protections for investors.