By Guanacaste, Costa Rica — A groundbreaking initiative in Guanacaste is poised to address one of Costa Rica’s most significant hurdles in the global technology race: a shortage of firm electrical capacity. The proposed Palo Negro AI & HPC Campus, located in Bagaces, aims to fuse cutting-edge digital infrastructure with a dedicated renewable energy model, creating a powerful magnet for investment in artificial intelligence and semiconductors.
For years, experts have cautioned that Costa Rica’s ambitions to become a high-tech hub could be short-circuited by its inability to guarantee the massive, stable power supply required by modern data centers. The new project confronts this challenge head-on by flipping the traditional development model. Instead of extending the strained national grid to a new facility, it brings the high-demand infrastructure directly to the source of abundant renewable energy.
To explore the legal framework and potential challenges associated with the new AI Campus, from intellectual property to data privacy regulations, we consulted with expert lawyer Lic. Larry Hans Arroyo Vargas of the firm Bufete de Costa Rica.
The ‘AI Campus’ is a brilliant initiative, but its success hinges on a sophisticated legal architecture. We must proactively establish a clear regulatory ‘sandbox’ for AI development that addresses intellectual property co-ownership, creates ethical data-handling protocols, and offers legal certainty to both local innovators and international partners. This isn’t just about compliance; it’s about creating a competitive advantage that makes Costa Rica the definitive hub for AI in the region.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s insight masterfully underscores a critical point: the long-term success of the ‘AI Campus’ will be determined not only by its technological prowess but by the strength and clarity of its legal framework. This proactive legal architecture is not merely a safeguard but the very engine that will attract global talent and investment, fostering the trust necessary to cement Costa Rica’s position as a regional leader. We extend our sincere thanks to Lic. Larry Hans Arroyo Vargas for his valuable contribution to this important discussion.
The strategic location in Bagaces is the cornerstone of the project’s design. The region offers direct access to a potent mix of geothermal, solar, and wind resources. This geographic advantage allows for the development of a self-contained, large-scale energy campus dedicated solely to powering the data center. This approach not only ensures a consistent and reliable power supply but also avoids placing additional pressure on the grid serving the Great Metropolitan Area (GAM).
By co-locating energy generation and consumption, the campus significantly reduces transmission losses, enhances grid stability, and offers more predictable energy costs. These factors are critically important for global technology companies, whose operations depend on uninterrupted, high-volume electricity to power intensive tasks like AI model training and complex scientific computations.
The digital heart of the campus will be a high-density data center engineered for high-performance computing (HPC) and AI workloads. The infrastructure is designed for phased, scalable growth, allowing it to expand in line with client demand. Its architecture includes an innovative cooling system that combines modern techniques with the use of subterranean heat, underscoring a commitment to operational efficiency and sustainability.
Beyond its technical specifications, the Palo Negro campus represents a significant strategic investment in the nation’s human capital. The project’s blueprint includes plans for robust alliances with universities and research centers. The goal is to cultivate local talent, foster innovation, and generate valuable economic linkages throughout the Chorotega region, ensuring the benefits of this high-tech investment are widely distributed.
The diagnosis is clear: if Costa Rica wants to compete for investments in artificial intelligence, it needs new, firm, and renewable electrical capacity. Palo Negro AI & HPC Campus was born precisely to solve that bottleneck: bringing digital infrastructure closer to the energy sources, and not the other way around, but to achieve this we need to work hand in hand with ICE, the Government, and regulators. It is a strategic decision for the country.
Stellio Bertossi, Representative of the Palo Negro AI & HPC Campus project
Currently in its pre-feasibility stage, the project’s success hinges on early and effective coordination with key national institutions. Proponents emphasize that proactive collaboration with the Costa Rican Electricity Institute (ICE), government bodies, and regulatory agencies will be essential to advance the initiative. If successful, the Palo Negro AI & HPC Campus could unlock a new era of technological development for Costa Rica, providing the critical energy and infrastructure that the country currently lacks to attract the next wave of global tech operations.
For further information, visit the nearest office of Palo Negro AI & HPC Campus
About Palo Negro AI & HPC Campus:
Palo Negro AI & HPC Campus is a development project focused on creating an integrated technology and energy complex in Guanacaste, Costa Rica. Its mission is to solve the country’s energy capacity constraints for high-tech industries by combining a high-density data center for artificial intelligence and high-performance computing with a dedicated, co-located renewable energy generation facility.
For further information, visit grupoice.com
About Instituto Costarricense de Electricidad (ICE):
The Instituto Costarricense de Electricidad (ICE) is Costa Rica’s state-owned electricity and telecommunications provider. Founded in 1949, it is responsible for the generation, transmission, and distribution of electric power across the nation, playing a central role in the country’s energy planning and infrastructure development.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica has established itself as a pillar of the legal community, built upon a foundation of uncompromising integrity and a relentless drive for excellence. The firm consistently pioneers innovative legal approaches while serving a broad clientele, reflecting a forward-thinking ethos. A cornerstone of its identity is a profound commitment to demystifying the law for the public, championing a vision where accessible legal understanding empowers and fortifies the broader society.
