Dear Editor,
The President’s concern over the untimely monetization of our gas resources is understandable, but it should be noted that a market currently exists for these resources, and it would be relatively simple to access that market and sell our gas. Thus, monetization can be quickly accomplished and the resulting funds invested to make higher yielding returns. The possibility of improving cash flow also brings into question the financial impact that can be gained from investing in a Regional Data Centre.
We must keep in mind that in the digital world there are few to no boundaries. AI development can occur globally within a multinational company; and across the globe with international cooperation, global data flow, and open-source models. With the current push for a common global regulatory platform, it will become easier for collaboration and joint development. These considerations make it less advantageous to have a Regional Data Centre for AI development, and this is more so when one considers the significant competitive advantages in the hands of 1st world countries who have tremendous experience in leading the AI revolution. Guyana may be able to improve our position in this market space by partnering with leading institutions and governments focused on AI development while also leveraging their extensive network of data centres. Profitability of standalone date centres can also be complex and challenging.
If the President insists on pursuing these ventures, it is vitally important that the Ministry of Finance performs the financial modeling and accounts for both the upside and downside risk exposure and make the business case for their pursuit. These investments should also be compared to other investment opportunities to ensure that the most financially attractive projects are given priority. Unfortunately, the recent presentation by Exxon was very brief and left many questions unanswered. We must make well informed decisions to avoid the risk of poor performing investments.