URUGUAY · DATA CENTRES
Key Facts
- —What is happening Senator Sebastián da Silva of the opposition National Party filed a bill on Thursday, 22 October to ban new data centres over the Guaraní and Raigón aquifers. It would also cover expansions but spare existing licensed sites.
- —Why it matters The bill follows a US$5.7 billion data centre deal with Spain’s Solaria, signed on 14 October. It shows the global cloud and AI build-out meeting water politics in Uruguay, where Google has said it will build a data centre.
- —The numbers Two named aquifers, plus the Libertad zone of San José department. The Solaria plan covers up to 500 MW of data centres and 350 MW of solar power, at a stated US$5.7 billion.
- —Who is who Da Silva’s National Party, a historic centre-right party, is in opposition to President Yamandú Orsi’s left-wing Frente Amplio government. The Ministry of Environment would draw the protected boundaries.
- —What to watch Whether the Senate sends the bill to a committee and how the government answers it. Also whether any planned Solaria site lies over the named aquifers.
- —Power Index Uruguay ranks 7th of 14 in The Rio Times Latin America Power Index, with 45.9 points (October 2026 edition).
- —What it means for you US cloud and AI firms eyeing Uruguay could face water-based siting limits if the bill advances. Investors in data centre power and cooling should watch the Senate.
An opposition senator wants new data centres kept off two strategic aquifers, days after the government announced its largest investment ever. The bill is a proposal only.
The Uruguay data centre bill would ban new data centres over two strategic aquifers. Senator Sebastián da Silva filed it on Thursday, 22 October, targeting an industry that US firms such as Google are bringing in.
The proposal comes eight days after President Yamandú Orsi signed a US$5.7 billion data centre agreement with Spain’s Solaria. It is only a bill, and the reports seen give no committee date and no government answer yet.
What the Uruguay Data Centre Bill Says
The text would ban new data centres over the Guaraní and Raigón aquifers and Libertad in San José, El Observador reported. The Ministry of Environment would set the boundaries using official hydrogeological maps.
The ban would cover new projects and expansions, but not existing installations with legal approval. It applies whatever the cooling technology or the water use, El Observador and Montevideo Portal reported.
The bill cites Article 47 of the Constitution, on the environment and water, and Law 18,610 on national water policy, Ámbito reported. The reports give no article-by-article text, penalties or further exceptions.
The explanatory note calls the sector an opportunity for investment and innovation, but says growth must protect groundwater. It describes aquifers as strategic for drinking water, farming, industry and future generations, El Observador reported.
What Da Silva Says
Da Silva wrote on X that “prever es gobernar” (to foresee is to govern), Ámbito reported. At a press conference he said Uruguay must preserve “absolutely strategic assets” for future generations.
Of data centres he said “let them go somewhere else”, Ámbito reported. He called the sites “huge sheds” that use a great deal of electricity and water, Montevideo Portal reported.
Da Silva cited disputes over data centres in North Dakota and Pennsylvania, Ámbito reported. He also stressed the Raigón aquifer’s role in crops such as potatoes.
He said he does not want to block technology investment, only keep it out of water-strategic areas. He questioned a data centre at Cardal, the heart of the dairy basin, but said he lacks information on the final site.
The US$5.7 Billion Solaria Deal Behind the Bill
On Wednesday, 14 October, Orsi signed an agreement with Solaria, which the presidency called the largest investment in Uruguay’s history. Solaria is a Spanish solar company that has operated in Uruguay for almost a decade.
The plan is worth US$5.7 billion: US$5.5 billion for data centres and US$200 million for solar generation. It foresees 500 MW of data centres and 350 MW of solar power across three departments, in a free-trade zone.
The first phase, with 200 MW of data centres and all the solar generation, is expected by 2029, the presidency said. A second phase would add 300 MW of data centres.
The government counts 3,100 construction jobs and 1,500 permanent jobs. Industry Minister Fernanda Cardona said phase one data centres would be in Canelones and phase two in San José, Montevideo Portal reported.
Solaria says it will use a closed-loop cooling system designed to minimise water use, Montevideo Portal reported. Da Silva’s bill would apply regardless of the cooling technology.
On 14 October Da Silva also asked the Executive for information on sites, power and water needs, permits and financing. The reports seen do not say whether the government has replied.
What It Means for US Readers
Google bought a 30-hectare site in 2021 in the Parque de las Ciencias free zone in Canelones. It confirmed in 2023 that it would build a data centre there, the state agency Uruguay XXI said.
The reports do not say how the bill would treat projects already approved but not yet built. Any limit on where data centres can go would matter to US cloud and AI firms that need much power and water.
Da Silva himself pointed to local disputes over data centres in the United States, so the argument is not unique to Uruguay. A US reader tracking AI infrastructure abroad should treat this as an early sign of water-based siting rules.
Earlier reports cover the US$5.7 billion Solaria deal and the US$120 million power request. The guides to who runs Uruguay’s economy and Uruguay’s role in Latin America add context.
The Montevideo city page lists more coverage of the capital. The Uruguay news hub collects every related story.
What Is Not Known
This article relies on press reports of the bill, not on its text, because the Parliament website could not be reached. The sources do not name the committee, other signatories or the government’s position.
It is not known whether any planned Solaria site lies over the Guaraní, Raigón or Libertad areas. Solaria’s financing and the customers who would rent the capacity are also not stated in the reports seen.
What Comes Next
The bill now starts the parliamentary process, so the next step is assignment to a Senate committee. The National Party will also summon Cardona to Parliament over the Solaria deal, MercoPress reported, with no date given.
Filing a bill does not make it law, and the text spares installations that are already legally authorised. Nothing in the reports says the Solaria project is blocked.
Frequently Asked Questions
What does the Uruguay data centre bill do?
It would ban new data centres and expansions on the surface of the Guaraní and Raigón aquifers, including the Libertad zone. Existing legally approved installations would not be affected.
Who is Sebastián da Silva?
He is a senator for the National Party, which is in opposition to President Yamandú Orsi’s government. He filed the bill on Thursday, 22 October.
Does the bill stop the Solaria project?
The reports do not say so. The bill covers only the named aquifers, and it is not known whether any Solaria site lies over them.
Why does water matter for data centres?
Data centres can use large volumes of water for cooling, depending on the technology. The bill applies whatever cooling system is used.
Is the bill law yet?
No. It was filed on 22 October and must pass through Parliament. No committee date or government response has been reported.
Why does it matter to US readers?
Google has said it will build a data centre in Uruguay, and other US cloud firms look at the region. Siting limits could affect where they build.
Sources: El Observador, 22 October; Montevideo Portal, 22 October; Ámbito Uruguay, 22 October; Presidencia de la República, 14 October; MercoPress, 16 October; Energía Estratégica, 15 October; Uruguay XXI, 1 November 2023 (all accessed 23 October 2026).
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief