Govt, Exxon in talks with potential investors to establish power data centres – Routledge
With the offshore gas resources being piped onshore, talks are ongoing with potential investors on the possibility of setting up power data centres here.
ExxonMobil Guyana President Alistair Routledge during his presentation at the Guyana Energy Conference and Supply Chain Expo in Georgetown
This has been revealed by President of ExxonMobil Guyana Ltd, Alistair Routledge, on Wednesday during a presentation on Day Two of the Guyana Energy Conference and Supply Chain Expo being held in Georgetown.
According to Routledge, Exxon and the Guyana Government are exploring the different options available to utilise the country’s rich gas from offshore. In fact, he disclosed that they have already engaged potential investors about the establishment of data centres here.
“We’ve had conversations with some potential investors. We’ve all heard (that there is), in other parts of the world, a huge demand for energy to support the AI growth and buildout in the world as we go through another evolution of digital to support society’s development. Well, why not use (the gas in Guyana) as part of the distributed data centres and AI around the world? So that’s on our radar,” he posited.
A data centre is a facility that centralises an organisation’s information technology (IT) operations and equipment for the purposes of storing, processing, and disseminating data and applications. Because they house an organisation’s most critical and proprietary assets, data centres are vital to the continuity of daily operations.
Only Tuesday, President Dr Irfaan Ali, speaking at the opening of the Energy Conference, said that with the increase in power and energy expected over the coming years, opportunities would be opened up to set up data centres here in Guyana.
“We have already opened up some discussions here, and we already have some important strategic partners. Just imagine, we [get] to tell Exxon that they have to move all their data storage globally to Guyana…maybe put that in local content…We have to create, we have to ensure that we invest in the infrastructure, and then drive business to the infrastructure,” the Head of State noted in outlining that partnership is key to these developments.
Back in 2023, President Ali had announced Government’s intention to market Guyana as a prime destination for information and communication technology (ICT) services, especially with establishment of data centres here, which he said would attract big businesses from around the world.
“The Attorney General and his Chambers, they’re working with the UAE (United Arab Emirates), they’re working with five/six different jurisdictions that’s implemented data [centre] legislation. But we’re going a step further, we’re looking at the challenges (encountered) since those countries implemented the legislation (in order) to ensure that our legislation is futuristic and captures the entire business environment,” the Guyanese Leader had stated in February 2023.
The establishment of power data centres here comes as the Guyana Government moves to monetise its offshore gas resources. In the Stabroek Block, which Exxon and its coventurers are operating, some 17 trillion cubic feet of gas has already been found, with the Pluma and Haimara wells being proven gas fields.
The People’s Progressive Party/Civic (PPP/C) Government is seeking to develop these gas fields.
United States energy firm Fulcrum LNG Inc has been selected to work in a tripartite arrangement with the Guyana Government and ExxonMobil to develop a potential gas project.
In fact, back in June 2024, President Ali had touted several projects that are being considered for this gas monetisation plan, including a shore base facility, an additional power plant, and a potential joint aluminum plant facility between Guyana and Suriname.
This is in addition to Government’s highly-anticipated Gas-to-Energy (GtE) project, which would see a Natural Gas Liquids (NGL) facility and a 300-megawatt power plant being set up at Wales, West Bank Demerara to utilise the rich natural gas from the Liza Fields in the Stabroek Block offshore Guyana.
In its first phase, this project would utilise approximately 50 million cubic feet of gas per day (mcf/d), while its second phase – comprising another power plant and NGL facility – would increase usage to some 120 mcf/d of gas.
ExxonMobil Guyana President Routledge believes there is much more potential to come, especially with its eighth project, the Longtail Development, which will be located in the southeast end of the Stabroek Block, being considered a non-associated gas area.
Routledge told delegates at the Energy Conference on Wednesday that this project is unique, in that it would produce both crude and natural gas, leaning more on the latter.
“We’ll have around one to 1.2 billion cubic feet per day of gas…It’s enormous,” he declared.
With this gas, the ExxonMobil Guyana President believes Guyana could pursue, in addition to the power data centres, fertilizer plants and alumina using refined bauxite, among other ventures.