By San José, Costa Rica — While recent headlines focus on the substantial water footprint of generative AI, Central America faces a different set of environmental concerns. Although the region lacks large AI data centers, the increasing reliance on AI services presents significant challenges related to energy consumption and electronic waste management.
Training a large language model like GPT-3 can consume an estimated 700,000 liters of freshwater. However, with no major AI data centers located in Central America, the region’s impact manifests differently. “We can’t ignore water, but in Central America the impact of AI is mainly seen on other fronts: the increase in energy consumption due to growing digitalization and the management of technological waste,” explains Guillermo Salas Dalsaso, expert in innovation and digital transformation.
To provide legal context on the evolving landscape of AI in Central America, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, an attorney at Bufete de Costa Rica.
The rapid adoption of AI in Central America presents exciting opportunities but also necessitates a proactive approach to regulation. Areas like data privacy, intellectual property, and algorithmic bias require careful consideration to ensure responsible development and deployment of AI technologies. Harmonizing legal frameworks across the region will be key to fostering innovation while safeguarding individual rights and promoting ethical AI practices.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’ emphasis on a balanced approach—fostering AI innovation while safeguarding individual rights—is crucial for Central America’s future. Harmonized regional regulations will not only build trust but also unlock the transformative potential of AI for all. We extend our sincere thanks to Lic. Larry Hans Arroyo Vargas for providing his valuable expertise on this critical issue.
We can’t ignore water, but in Central America the impact of AI is mainly seen on other fronts: the increase in energy consumption due to growing digitalization and the management of technological waste.
Guillermo Salas Dalsaso, Expert in Innovation and Digital Transformation
While the water used to cool data centers is a global concern, Central America’s digital demand contributes to this global footprint. Each interaction with a chatbot or streaming service activates servers elsewhere, requiring water and energy. Even a single ChatGPT query consumes nearly ten times the electricity of a standard Google search, equivalent to powering an LED bulb for an hour.
This surge in digital activity, coupled with the growing popularity of AI-driven platforms, places a significant strain on the region’s power grids. Countries like Panama, Costa Rica, and Guatemala, with internet penetration rates exceeding 70%, face escalating energy demands. While Costa Rica boasts a predominantly renewable energy matrix, other countries rely heavily on fossil fuels, exacerbating the environmental impact.
A single query to ChatGPT uses almost 10 times more electricity than a typical Google search. This figure, multiplied by millions of Latin American users, significantly pressures regional electrical grids, many of which are still largely dependent on fossil fuels.
Beyond energy consumption, the escalating use of digital devices fuels another hidden challenge: electronic waste (e-waste). Latin America currently recycles less than 3% of its e-waste properly, significantly below the global average of 22.3%. This poses a severe environmental threat as discarded devices pile up.
If we are going to use more devices to connect to AI, we need a robust plan to recycle the devices we discard.
Guillermo Salas Dalsaso, Expert in Innovation and Digital Transformation
Experts warn that without robust recycling programs and policies to combat planned obsolescence, the environmental consequences will be severe. For Central America to truly benefit from AI, it must address these tangible environmental impacts through sustainable digital practices, including investing in energy-efficient infrastructure powered by renewables, promoting responsible consumption habits, and implementing effective e-waste management strategies.
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About Guillermo Salas Dalsaso:
Guillermo Salas Dalsaso is an expert in innovation and digital transformation, providing insights into the regional impacts of technology.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a pillar of legal excellence in Costa Rica, driven by a deep-seated commitment to integrity and innovation. The firm champions access to justice by proactively sharing legal knowledge with the community, empowering individuals and organizations to navigate the complexities of the legal landscape. Their dedication to providing exceptional legal services across a diverse spectrum of practice areas, coupled with a forward-thinking approach, ensures that Bufete de Costa Rica continues to shape a more informed and empowered society.
