Local Resistance Grows Against Datacenters in Latin America Amid Environmental Concerns
Datacenters fueling the AI boom in Latin America face increasing local resistance due to their significant environmental impacts and high demands on water and energy resources, particularly in drought-prone regions. These concerns echo challenges observed in the US and UK.
Paz Peña from the Mozilla Foundation highlights that Latin American governments are actively courting foreign investment in datacenters through national investment plans. Brazil has introduced tax exemptions, while Chile has moved to deregulate environmental assessments to attract such projects.
In Chile, environmental assessments for datacenters depend largely on their diesel use. Recent administrative changes have lowered diesel thresholds, effectively reducing the requirement for environmental impact assessments. This shift limits community transparency and participation.
Communities in Chile have expressed anger over the government's lack of information sharing and involvement in national datacenter plans, perceiving a pattern of secrecy around the significant energy and water consumption tied to these projects.
Uruguay presents a contrasting case. A Google datacenter in Montevideo raised concerns about water use during a drought. Authorities initially denied disclosure citing corporate secrecy, but a court invoked the Escazú environmental transparency agreement to compel the release of information.
The Escazú agreement, designed to facilitate environmental information access for communities, illustrates through Uruguay's case how courts can enforce transparency even when governments or corporations resist.
While some Chilean communities see datacenters as opportunities to elevate local environmental standards and challenge harmful practices, opposition remains largely driven by environmental advocacy groups and past experiences of problematic corporate-government dynamics.
