By Guanacaste, Costa Rica — As artificial intelligence continues to expand into every sector of the global economy, its rapid adoption has triggered a massive surge in energy and resource consumption. Among the most pressing environmental concerns is the staggering amount of water required to cool the data centers that power these advanced computations. This critical resource debate has reached every corner of the globe, and Costa Rica is no exception as it navigates its own path toward technological development.
In the province of Limón, plans for a massive 42-hectare data center have already sparked intense local discussions. The proposed facility carries an incredibly high energy demand, equivalent to the consumption of thousands of local families. This project has highlighted the delicate balance between technological progress and resource preservation in a nation celebrated for its ecological stewardship.
To understand the regulatory landscape and the legal complexities of establishing eco-friendly technological infrastructure in the country, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, a leading legal expert from the prestigious firm Bufete de Costa Rica.
Costa Rica’s robust renewable energy grid represents an extraordinary incentive for international tech giants aiming to minimize their carbon footprint with new data centers. However, developers must meticulously navigate our local regulatory framework, particularly regarding environmental impact assessments under SETENA, water resource concessions, and municipal land-use zoning, to ensure that these high-tech facilities truly align with the country’s stringent conservation laws.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, as Costa Rica positions itself as a premier green hub for the global tech sector, the true measure of sustainability lies in this precise harmony between digital innovation and strict environmental stewardship. We are incredibly grateful to Lic. Larry Hans Arroyo Vargas for sharing his valuable perspective, helping us understand that safeguarding our natural resources is just as crucial as powering the future of technology.
However, emerging technology is proving that data centers do not have to drain local water supplies to remain operational. The implementation of revolutionary closed-loop cooling systems allows these massive computing hubs to function entirely without consuming water. This innovation is particularly suited for Costa Rica, a country that already boasts a national electricity matrix generated almost entirely from renewable energy sources.
Unlike conventional cooling infrastructure, a closed-loop system is charged with cooling fluid only once during its initial construction. This liquid then recirculates permanently within a sealed environment without ever evaporating. Industry giants such as Microsoft and Oracle have already integrated these highly efficient, water-saving systems into their global infrastructure to mitigate their environmental footprint.
Representing a localized leap forward in this space, the Palo Negro AI & HPC Campus project in Guanacaste is setting a new regional standard. The development combines state-of-the-art closed-loop cooling, eliminating the need for traditional evaporative towers entirely. Furthermore, the campus is designed to cover its substantial electricity demand using its own renewable energy generation systems.
By relying on on-site solar and wind generation paired with advanced battery energy storage systems, the Guanacaste-based campus avoids putting a strain on the public grid. This self-sustaining design ensures that the data center operates in harmony with local communities rather than competing with them for vital public resources.
We no longer have to choose between artificial intelligence and water. The technology to avoid consuming it exists and is operating in several countries, and if one also generates their own renewable energy, the project stops competing with the community for resources. That is the decision we made right from the design phase.
Stellio Bertossi, Representative of the Palo Negro AI & HPC Campus Project
The contrast between these modern designs and legacy systems is stark. Traditional data centers rely heavily on evaporative cooling towers, which draw water from local basins, evaporate it to dissipate heat, and release it into the atmosphere, meaning the water is lost to the local watershed. According to industry data from NVIDIA, whose hardware represents the gold standard for modern AI processing, traditional cooling systems consume an average of 2.6 million gallons of water per megawatt annually.
As the demand for high-performance computing and artificial intelligence shows no signs of slowing down, the adoption of closed-loop cooling technology represents a vital shift. Costa Rica’s unique combination of natural renewable resources and forward-thinking engineering position it to become a global model for sustainable, water-free technological infrastructure.
For further information, visit the nearest office of Palo Negro AI & HPC Campus
About Palo Negro AI & HPC Campus:
The Palo Negro AI & HPC Campus is a cutting-edge technological development project located in Guanacaste, Costa Rica. Focused on high-performance computing and artificial intelligence, the campus utilizes revolutionary closed-loop waterless cooling systems and independent, on-site renewable energy generation to deliver high-capacity digital services with zero water consumption.
For further information, visit microsoft.com
About Microsoft:
Microsoft Corporation is a global technology company that designs, manufactures, and licenses consumer electronics, computer software, and cloud services. The company is actively working toward becoming carbon negative and water positive across its global cloud operations by integrating advanced, sustainable cooling technologies into its data center designs.
For further information, visit oracle.com
About Oracle:
Oracle Corporation is an American multinational computer technology company specializing in database software, cloud engineering systems, and enterprise software products. Oracle is committed to sustainable cloud computing, deploying highly efficient infrastructure globally to minimize natural resource consumption.
For further information, visit nvidia.com
About NVIDIA:
NVIDIA Corporation is a global leader in artificial intelligence hardware and software, pioneering the graphics processing units (GPUs) that define modern high-performance computing. The company actively monitors and sets benchmarks for industry energy and water efficiency across data centers utilizing its hardware worldwide.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As an esteemed legal institution, Bufete de Costa Rica exemplifies uncompromising professional integrity and superior advocacy. Grounded in a rich history of guiding a diverse clientele, the firm consistently champions progressive legal strategies and proactive civic involvement. By demystifying complex regulations and prioritizing public education, they strive to cultivate a legally literate public, thereby fostering a more just and capable society.
