The Bahamas Explores Ocean Thermal Energy For Data Centres And Water Supply As Global OTEC Leads Technical Studies
London, UK - Global OTEC has been appointed lead technical partner in a consortium with the Oceanic Platform of the Canary Islands (PLOCAN) to study a site for an Ocean Thermal Energy Conversion (OTEC) in cooperation with The Government of The Bahamas. Commissioned by Expertise France and financed by the European Union (EU), the work is implemented under the Euroclima programme as part of the EU's support to the energy sector, recognised as a key sector under the EU's Global Gateway Investment Agenda for the region. The Government of The Bahamas has requested this effort to provide an evidence base for a go or no-go decision on advancing OTEC toward project implementation.
The Bahamas is an archipelago of more than 700 islands and cays with a population of roughly 400,000. More than 90% of its electricity is generated from imported diesel and heavy fuel oil, leaving households and businesses exposed to volatile international fuel prices and some of the highest electricity tariffs in the Caribbean. The archipelagic geography produces multiple isolated grids across the Family Islands, each with its own generation and distribution constraints.
The energy challenge is inseparable from a water one. More than half of the potable water in the Family Islands is produced by energy-intensive seawater reverse osmosis desalination, creating a direct dependency between energy security and water security. OTEC addresses the generation of baseload electricity around the clock, from the temperature difference between warm surface seawater and cold water drawn from depth, while making that same cold water available for desalination and cooling.
This feasibility study will assess integration with seawater reverse osmosis, seawater district cooling, and data centre cooling alongside the core power system.
Global OTEC considers the data centre application commercially significant for attracting international investment. In tropical latitudes, cooling rather than compute dominates data centre operating costs, and it is a major constraint that keeps digital infrastructure away from island markets. Deep cold seawater removes that barrier by providing an abundant resource of cooling for both air and liquid processes, known as 'hybrid cooling'. The Bahamas is well positioned in this respect, with proximity to North American internet interconnection nodes and existing desalination plants.
"Any renewable technology can produce electrons, but only one of them also delivers a valuable cooling and drinkable water resource as a byproduct. That is the difference between OTEC and everything else in a tropical island context. In The Bahamas you have huge thermal resource, the subsea connectivity and a government that has been willing to do the groundwork through progressive studies. Our role over the next year is to establish, with real data and engineering, whether a site can carry a first-of-a-kind installation for the Caribbean," said Dan Grech, Founder and CEO, Global OTEC.
Deep ocean water facilities are not a new phenomenon with approximately 38 around the world. They have been used for decades in Hawaii, French Polynesia, and Japan for a variety of applications, from cooling hospitals and resorts to supporting aquaculture and agriculture. The Bahamas already has a foothold: the Baha Mar resort in Nassau draws seawater from roughly 300 metres to cool its facilities. What has not yet happened is the transfer of the full model to the Atlantic, where the Caribbean's combination of high energy costs, water scarcity and deep water close to shore makes the case unusually strong for an entire region.
This assignment will build on several years of prior work led by the Bahamas, including a NOAA temperature and salinity measurement campaign conducted off Eleuthera in 2023 using an autonomous seaglider, which collected profiles from the surface to 900 metres and confirmed the presence of a substantial thermal gradient in the water column. The review will also cover matters related to environmental and social concerns and considerations.
OTEC and the Caribbean fuel trap
The Caribbean's dependence on imported fossil fuels is often described as a 'fuel trap'. Electricity across the region averages around USD 0.25 per kWh, more than double the United States average, and exceeds USD 0.40 per kWh in some territories. High and unpredictable power costs suppress competitiveness and productivity across every other sector of these economies. Escaping the trap calls for technologies suited to the region's actual conditions: limited land, exposure to tropical storms, and small isolated grids that need firm power rather than intermittent supply.
The Bahamas assignment follows Global OTEC's Memorandum of Understanding with the Barbados Investment and Development Corporation (BIDC), signed at the UN Ocean Conference in June 2025, and the company's technical leadership of PLOTEC, the EU-funded project that designed and tested a storm-resilient floating OTEC platform structure for deployment in weather-exposed waters. PLOCAN coordinated the PLOTEC project and hosted the testing of the OTEC prototype at its offshore test site. Their collaboration on PLOTEC gave the two organisations an established working relationship ahead of this assignment.
About Global OTEC
Global OTEC is a UK-based company established to accelerate the commercialisation of floating Ocean Thermal Energy Conversion technology, delivering zero-carbon baseload power to Small Island Developing States, Least Developed Countries and coastal nations, strengthening energy security while reducing dependence on imported fossil fuels.
About PLOCAN
The Oceanic Platform of the Canary Islands (PLOCAN) is a joint public initiative of the Government of Spain and the Government of the Canary Islands, established to accelerate research, technology development and innovation in the marine and maritime sectors. It operates an offshore test site and ocean observatory off Gran Canaria, where marine technologies can be trialed in real sea conditions, and has a Memorandum of Understanding with The Government of The Bahamas.
About Expertise France
Expertise France is the French public agency for international technical cooperation and a subsidiary of the Agence Francaise de Developpement (AFD) Group. The second largest agency of its kind in Europe, it designs and implements projects that strengthen public policy in developing and emerging countries across governance, security, climate, health and education, working alongside its partners to advance the United Nations Sustainable Development Goals. Expertise France is one of the implementing agencies of the Euroclima programme in the Caribbean.
About Euroclima
Euroclima is the European Union's flagship cooperation programme on environmental sustainability and climate change in Latin America and the Caribbean, supporting the region's green transition through climate mitigation and adaptation and the protection of biological diversity. It contributes to the EU's Global Gateway Investment Agenda, which uses public financing to leverage private capital for projects advancing the green and digital transition. In the Caribbean, Euroclima is funded by the European Commission and implemented by European Union Member State agencies, including Expertise France, alongside United Nations partners.
This project is financed by the European Union. The contents of this publication are the sole responsibility of Global OTEC Resources Ltd and do not necessarily reflect the views of the The Government of The Bahamas, the European Union, or Expertise France.
Source: Global OTEC