Dear Editor,
The recent announcement of a Memorandum of Understanding (MOU) between the Government of Guyana and Cerebras Systems to explore the development of an artificial intelligence data centre is undoubtedly ambitious. Such a project, if realized, could position Guyana within the cutting-edge technology sector. However, given the scale and prerequisites involved, this announcement warrants prudent public scrutiny and transparent dialogue regarding its integration into our national development strategy, particularly concerning our energy infrastructure.
A primary consideration is the project’s significant energy requirement—reportedly up to 100 MW—and which was guaranteed by the PPP/C Government under President Irfaan Ali to the company Cerebras Systems. Another key consideration is Guyana meeting the regulatory standards to unlock the cash to allow for this project to meet its operational timeline.
This energy demand must be evaluated within the context of Guyana’s existing energy commitments and the planned rollout of new generation capacity. Public understanding is that the 300 MW of new power scheduled to come online by 2027 is intended to alleviate the current national dependency on temporary power solutions by way of the Power Boats and to fuel a broader economic transformation with new industrial sites and agro-processing production areas.
A legitimate public concern arises if the allocation of a substantial portion of this new capacity to a single, large-scale consumer could inadvertently prolong the need for costlier interim power generation. Currently, the power purchase agreements for the existing generation barges result in a significant annual financial subsidy from the national treasury to GPL of some $45 billion. This transfer to GPL is necessary, as the cost of supplied power from the Turkish power ships far exceeds the domestic retail tariff and the cost of power production from the generators within the GPL system.
If 100 MW of this power is guaranteed to the company Cerebras Systems, it mandates an extension of these arrangements with the Turkish power ships at some $20 billion per boat per year. I want Ms. Amanza Walton-Desir, a very intelligent opposition leader to read this and understand what I am saying here.
Should new baseload power be guaranteed to this company, it would represent a continued fiscal burden on the taxpayers, resulting in the diversion of public funds from other critical national needs. That is $45 billion that currently going to the Turkish company and those in the Government who are also benefiting from this deal, cannot be spent on education, health or even salaries of public servants. The opportunity cost of such an allocation deserves thorough analysis and public explanation by President Irfaan Ali and Minister Deodat Indar.
Therefore, it is imperative that the relevant authorities provide clarity on several key points:
How will the 100 MW requirement for the proposed data centre be reconciled with the projected national energy demand and the goal of ending reliance on costly temporary power?
What independent, technical studies have been conducted to ensure this project aligns with a long-term, integrated resource plan for Guyana’s electricity sector?
What specific, transparent, and competitive procurement processes will govern any final agreement, ensuring optimal value for the nation?
Furthermore, the successful operation of a sophisticated AI data centre, particularly one handling sensitive international data, requires a robust legal and regulatory framework. This includes comprehensive data protection, cybersecurity, and AI governance laws that meet international standards, none of which are present in Guyana. A detailed assessment of the necessary legislative upgrades and the timeline for their implementation would be a crucial indicator of the project’s feasibility.
We encourage the government to proactively address these substantive questions. For an initiative of this magnitude to earn full public confidence, it must be grounded in transparent planning, clear fiscal responsibility, and demonstrable alignment with the nation’s overarching energy and economic goals. MOUs are initial steps; the true measure of this venture will be when it transforms into something that the investor will want to put their money into and what is in it for Guyana? It is unfortunate that President Ali sought to project a signed MOU as a done deal when the evidence from the world is that 8 out of 10 MOU results in no project and thus in the world of business the MOU means very little.
We urge all stakeholders, including the parliamentary opposition, to engage in a fact-based, constructive dialogue on these paramount issues of national resource allocation and long-term strategic planning.
And please ask President Irfaan Ali when will he deliver on his 2020 promise to reduce the cost of electricity to the people by 50% by 2025?