After the Ministry of Environment (MA) signed a resolution authorizing Google to install a data center in the Science Park in Canelones, the tech giant announced an investment of over $850 million in Uruguay to construct this center on August 29, 2024. This significant Google data center investment in Uruguay marks a pivotal moment in the country’s technological and economic development.
Strategic Importance of the Data Center
During his speech, Eduardo López, President of Google Cloud in Latin America, emphasized that today, in economies, “processing, information, and connectivity are fundamental factors for economies to develop, to generate talent, and to create jobs.” Therefore, he considered it essential for Google to create a data center that would allow it to “evolve”; “not only for Google but also by providing a tool of transformation for the countries and societies where we are located.” The Google data center investment in Uruguay is expected to play a crucial role in this transformative process, benefiting the region and contributing to a global network of 28 data centers in 11 countries that support all Google products worldwide.
In that sense, López noted that the data center “will not only serve the region” but is “part of the network of 28 data centers in 11 countries that provide services to all our products worldwide.” The broader impact of the Google data center investment in Uruguay is anticipated to extend beyond national borders, making it a strategic hub in Google’s global infrastructure.
Sustainability at the Core
The Minister of Industry, Energy, and Mining, Elisa Facio, highlighted that the project is “innovative” from a sustainability perspective, as it “will use air instead of water for cooling.” “This is a factor highly valued by us as a government, as we are firmly committed to promoting environmentally friendly production.” She also stated that Uruguay “has made sustainability a part of its production strategy,” which she considered a “key factor” for economic development. The sustainable approach of the Google data center investment in Uruguay aligns with the country’s environmental goals, ensuring that technological advancement does not come at the cost of ecological integrity.
“We believe that the ability to develop this project without significantly altering CO2 emission levels is a value in itself,” the minister emphasized, expressing her gratitude for “the work carried out with UTE, which provided support and assistance in addressing this and other concerns that could be associated with a project of this nature.” The Google data center investment in Uruguay is thus being hailed for its economic potential and commitment to sustainability.
Government Support and Future Prospects
Meanwhile, the Minister of Foreign Affairs and former Minister of Industry, Energy, and Mining, Omar Paganini, expressed the government’s “satisfaction” with “this project finally coming to fruition” and that “this is the kind of thing Uruguay needs to keep doing”: “being very open to projects from this type of company, these kinds of ventures that aim at the future.” Completing the Google data center investment in Uruguay represents a successful collaboration that will likely pave the way for further high-tech investments in the country.
Advocacy and Strategic Planning
In a press conference, the vice-presidential candidate for the Frente Amplio (FA), Carolina Cosse, said that the project was developed “with a great team from Antel” that managed to create an undersea fiber optic cable with Google, which “enabled a work trajectory.” According to Cosse, during this trajectory, they insisted “over and over” that the multinational should establish its data center in Uruguay. The advocacy and persistence in securing the Google data center investment in Uruguay underscore the strategic importance of this project for the country’s digital future.
Confidentiality and Environmental Impact
The presidential candidate for the FA, Yamandú Orsi, recalled in a press conference that during the previous government term, Google approached them “without revealing what it was about and requesting confidentiality.” “I was fortunate, as the mayor [of Canelones], to have conversations with the former Minister of Industry, Paganini, at that time, to ensure that this never fell through,” he said, adding that what is essential is “looking forward and understanding that this will trigger other types of related investments that will greatly help us as a country.” The strategic discussions that led to the Google data center investment in Uruguay were marked by careful planning and confidentiality, ultimately benefiting the country’s long-term economic prospects.
Controversy Surrounding Environmental Impact
However, one of the controversial points regarding the installation of Google’s data center in Uruguay was that, in a 2020 report by Eleanor Applications SRL—a subsidiary of Google—on the environmental feasibility of the project’s location, the pages where the “water details,” “wastewater details,” and “energy details” were supposed to be appeared as “confidential.” Given the potential environmental impact of the Google data center investment in Uruguay, this confidentiality raised concerns.
For this reason, in 2022, Daniel Pena, a researcher from the Faculty of Social Sciences, submitted a public information request to the MA to learn about the volume of potable water required for the project’s operation. Finally, in 2023, it was revealed that the center could use up to 7,600,000 liters of potable water daily. The revelation brought attention to the environmental implications of the Google data center investment in Uruguay, sparking public debate.
When asked about this issue, Orsi said that “it’s not secrecy for the sake of secrecy so that no one finds out,” but rather that “when a deal isn’t finalized, it’s logical that the parties involved don’t expose themselves to competition or other factors that might work against them.” “In our case, they requested confidentiality because they were deciding whether to establish here or in Brazil.” The Google data center investment in Uruguay was thus subject to confidentiality, which Orsi justified as a standard business practice rather than a lack of transparency.
Balancing Confidentiality with Environmental Responsibility
“I believe that my country, through various governments and particularly under mine, the FA, has created the necessary conditions for land-use planning and environmental regulations so that one must go through certain stages before finalizing any venture,” he pointed out. Therefore, he considered that “confidentiality, in this case, is more about business plans, and, during discussions, they decided to switch from water cooling to air cooling.” “I have great confidence in the regulations we have and the technical expertise from universities trained on environmental issues; confidentiality doesn’t always equate to a lack of transparency,” he concluded. The approach taken with the Google data center investment in Uruguay reflects a balance between business confidentiality and environmental responsibility.
Conclusion: A Transformative Milestone for Uruguay
The Google data center investment in Uruguay represents a significant milestone in the country’s journey toward becoming a technological hub in Latin America. Despite the controversies surrounding environmental impact and confidentiality, the project underscores Uruguay’s commitment to sustainable development and its strategic vision to attract high-tech investments. The collaboration between Google and the Uruguayan government highlights the nation’s ability to create a conducive environment for global companies, fostering economic growth and innovation. As the data center becomes operational, it is poised to enhance regional connectivity and solidify Uruguay’s global position, marking a transformative moment in its economic and technological landscape.