Artificial intelligence (AI) is rapidly transforming the energy landscape across Latin America and the Caribbean, ushering in a new era of cleaner, smarter, and more resilient systems. On November 25, 2025, a comprehensive report by Stimson Fellows and CAF, in collaboration with Microsoft, was released to shed light on how AI is reshaping energy production, distribution, and governance in the region. The findings, coupled with recent corporate sustainability moves—like Coca-Cola Argentina’s landmark renewable energy deal—paint a picture of a continent on the cusp of a digital and green revolution.
According to the report, titled AI and Energy: An Overview of Emerging Practices, the integration of AI is already visible in nearly every corner of the energy sector. From forecasting renewable energy output and managing decentralized energy models to predictive maintenance, digital twins, and advanced grid management, AI is boosting operational efficiency and fortifying system resilience. Amy Luers, Microsoft’s Senior Director of Science, Innovation, Energy, Connectivity, and Sustainability, put it succinctly: “The convergence between AI and energy is becoming an imperative to accelerate the shift toward cleaner, more resilient, and more inclusive systems in Latin America and the Caribbean.”
But what does this mean on the ground? In Chile, AI-powered renewable forecasting is optimizing clean energy usage, helping the country make the most of its abundant solar and wind resources. Meanwhile, Brazil, Uruguay, and Mexico are harnessing AI to modernize their grids and plan for smarter infrastructure. In Mexico, the city of Queretaro has emerged as a digital hub thanks to the installation of multiple data centers—a development that’s sparked new conversations about monitoring water and energy consumption as digital infrastructure expands.
These changes aren’t happening in a vacuum. The report notes that the expansion of data centers and cloud computing is fundamentally altering energy demand profiles, raising fresh concerns about grid efficiency, operational transparency, and long-term resource planning. The authors argue that AI has the potential to drive renewable energy integration and digitalization, but it also puts pressure on electrical systems as digital demand soars. Striking a balance between technological progress and environmental stewardship is now at the heart of policy debates throughout the region.
To guide this transition, Stimson Fellows and CAF recommend a set of actionable measures. These include standardized disclosure on energy and water use for operators, incentives linked to renewable integration, and measurable community benefits such as workforce training and shared infrastructure. Such recommendations dovetail with national decarbonization plans and digital inclusion strategies already underway in many Latin American and Caribbean countries.
Governance is another critical piece of the puzzle. The report highlights the establishment of the Regional Council for the Implementation of the Recommendation on the Ethics of AI, a joint initiative by CAF and UNESCO. In its first year, the council has worked with seven countries to provide technical assistance and pilot regulatory experiments focused on talent development and ethical principles. Looking ahead to 2024–2025, the council’s roadmap puts a premium on AI governance and regulation, emphasizing rights, digital security, and accountability. To bolster these efforts, CAF is coordinating a regional high-performance computing network, starting in Chile and the Dominican Republic, aimed at closing capacity gaps and strengthening regulatory capabilities.
“AI deployment in energy markets requires transparent governance, cross-border collaboration, and long-term infrastructure planning,” the report states. The message is clear: the expanding digital ecosystem in Latin America and the Caribbean can be a powerful engine for economic development, but only if data center growth, renewable integration, and community participation progress hand in hand.
As if to underscore this regional momentum, Coca-Cola Argentina announced on November 26, 2025, that it had formalized a strategic alliance with Genneia, the country’s largest renewable energy producer. The deal will supply Coca-Cola’s concentrate plant in Buenos Aires and its storage center in Ezeiza with electricity generated from wind power and solar photovoltaic sources, replacing nearly 80% of the facilities’ annual energy consumption with certified clean energy. The electricity will be delivered under a five-year power purchase agreement (PPA) through Argentina’s MATER framework, which governs the Renewable Energy Term Market.
The clean energy will come from Genneia’s diversified portfolio of wind farms and solar parks, located in various regions across Argentina. This initiative aligns perfectly with The Coca-Cola Company’s global decarbonization strategy, which aims to achieve net-zero emissions by 2050 and cut absolute greenhouse gas emissions by 25% by 2030, using 2015 as a baseline year.
Bernardo Andrews, CEO of Genneia, expressed his enthusiasm about the collaboration: “We are proud that a company like Coca-Cola trusts Genneia to advance its sustainability goals. This alliance reflects the strength of our competitive, tailored energy solutions and reinforces our commitment to supporting the country’s leading companies in their efficiency strategies.”
Leonardo García, General Manager for Coca-Cola in Argentina and Uruguay, echoed this sentiment, stating, “At Coca-Cola, we work to ensure that every decision we make generates a positive impact on people and the planet. This alliance with Genneia helps us move toward a cleaner and more responsible operating model, aligned with both our local and global sustainability objectives.”
Genneia’s reach now extends to over 80 corporate clients operating under the MATER framework, consolidating its leadership in Argentina’s corporate renewable energy market. The company provides customized energy solutions to diverse sectors, including agribusiness, food and beverage, automotive, oil and gas, construction, transportation, and pharmaceuticals, all in the name of more efficient—and greener—operations nationwide.
While the Coca-Cola-Genneia deal is a headline-grabber, it’s also emblematic of a broader shift across Latin America and the Caribbean. As AI and digital technologies become ever more entwined with energy systems, the region is faced with both unprecedented opportunities and complex challenges. The push for standardized reporting, incentives for renewable integration, and the cultivation of a skilled workforce are all part of a larger effort to ensure that the digital revolution supports sustainable growth and equitable development.
At the same time, the emphasis on governance and ethical oversight—championed by the Regional Council and other multilateral bodies—signals a recognition that technology alone isn’t enough. Transparent policies, community engagement, and cross-border cooperation will be essential to navigating the evolving landscape, especially as data centers proliferate and energy systems become more digitized and decentralized.
In the end, the region’s path forward will depend on its ability to blend innovation with responsibility, ensuring that the benefits of AI and clean energy reach not just corporations and governments, but also local communities and future generations. The road ahead is complex, but with the right mix of technology, policy, and people-centered solutions, Latin America and the Caribbean could well become a global model for digital and green transformation.