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Digital WorldUruguay

How AI boom is impacting Latin America, US

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Sascha Quaiser | Tabea Mergenthaler
October 7, 2025

Plans for data centers have led to protests in Uruguay, Chile and US. Should server farms be built in regions that are already dry? What are the alternatives?

Google's plans to build a data center in drought-stricken Uruguay sparked protests over excessive water use and lack of public consultation during the country's worst drought in 75 years. Experts warn that switching to air cooling may reduce direct water use but also increases energy demand and emissions. Similar controversies have emerged in Chile and the US.

This report explores the global impact of data centers and the urgent need for sustainable, transparent and climate-conscious tech development across vulnerable regions.

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