Understanding the energy impact of artificial intelligence and data center growth across the region.
As artificial intelligence (AI) continues to evolve and adoption accelerates, the demand for digital infrastructure; particularly data centers, is surging across the globe. In Latin America, this growth is accompanied by new energy challenges, raising questions about sustainability, policy, and infrastructure readiness.
This policy brief from the Institute of the Americas explores the interconnection between AI innovation, data center expansion, and energy demand in the region. It sheds light on how the digital economy is influencing electricity consumption and what it means for governments, utilities, and stakeholders committed to climate goals.
The report includes an accessible glossary of terms, “data center basics,” and insights to help inform future policy, investment, and planning.
What you will find in the report
- A breakdown of how AI and cloud services are driving data center expansion
- The energy footprint of digital infrastructure and key sustainability concerns
- Glossary of essential terms for understanding the data center landscape
- Regional trends and policy challenges related to energy use in Latin America
- A concise overview of how innovation is reshaping energy systems
- Strategic recommendations for policymakers, investors, and regulators
Key Questions
- How does the growth of AI and cloud computing impact electricity consumption?
- What is the current and projected energy demand from data centers in Latin America?
- What role can policy and regulation play in supporting sustainable expansion?
- How can Latin American governments prepare for the energy implications of the digital economy?
- What are the most critical sustainability risks associated with the data infrastructure boom?
- How do global data center trends translate to the Latin American context?