Latin American energy integration and AI infrastructure

Regional leaders and industry executives continue to advocate for the strengthening and integration of electrical grids across Latin America and the Caribbean to support economic stability and energy transitions.

During the XI Energy Week in Santo Domingo, the Latin American and Caribbean Energy Organization (Olacde) reiterated the necessity of increased regional integration to combat rising fuel costs and enhance energy security. In the Dominican Republic, the transition to renewable energy—which has grown from 2% in 2020 to 26%—is currently hindered by an isolated electrical system that lacks interconnections with neighboring networks.

Technological shifts, particularly the rise of Artificial Intelligence, are driving new demands for energy and specialized infrastructure. The increased thermal density of AI-driven data centers is shifting cooling requirements from traditional air-based methods toward direct-to-chip liquid cooling. This demand has spurred industrial developments, such as HiRef’s new manufacturing plant in Hidalgo, Mexico, which focuses on precision and liquid cooling solutions.

To support broader economic competitiveness and digital connectivity, a US$50 million financing line from BID Invest and Nokia has been established to modernize digital infrastructure across the region, beginning in Mexico.