Cuba Welcomes Foreign Investment in ETECSA Data Centers and Embraces Artificial Intelligence

The Cuban government has unveiled a set of initiatives aimed at advancing digital transformation and artificial intelligence (AI) by inviting foreign investments in the data centers of Empresa de Telecomunicaciones de Cuba (ETECSA). This move underscores the state's acknowledgment of its limitations in maintaining strategic infrastructure.

Manuel Marrero, the Prime Minister, presented these measures to the National Assembly of People's Power (ANPP), outlining a comprehensive package of 176 economic and social reforms purportedly designed to revive an economy grappling with an unprecedented crisis.

Opening Doors to Foreign Capital

A key highlight of the new strategies is the allowance of foreign investment to enhance the capabilities of ETECSA’s data centers. This decision highlights the urgent necessity to attract international capital to a sector that has long been dominated by a strict state monopoly.

The plan also proposes enabling the private sector to offer cloud computing, IP telephony, contact centers, and other technological services, albeit with restrictions on infrastructures deemed critical to national security.

A Shift from State Control

This partial opening to private and foreign investment marks a significant shift from the longstanding controls and limitations that the authorities have imposed on the independent development of the tech sector.

Experts have frequently pointed out that Cuba's digital lag is not solely due to U.S. sanctions, a central claim of the official narrative, but also stems from an excessively centralized economic model that has stifled innovation, competition, and investment.

Embracing Data as a Key Resource

Among the proposed reforms is the establishment of a national framework for interoperability, data governance, and artificial intelligence, along with a more competitive remuneration system to boost the export of digital services.

The government also plans to integrate AI tools into public procurement processes. According to Marrero, an AI-based digital platform will ensure transparency and risk assessment in these proceedings.

However, promises of increased transparency are met with skepticism in a nation where state contracts and public resource management lack independent oversight mechanisms.

Mixed Management and Recognizing Data's Value

Additionally, authorization will be granted for mixed management of postal and last-mile logistics infrastructure—another sector traditionally monopolized by state entities struggling to meet rising service demands.

One of the most notable announcements is the recognition of data as the "fifth factor of production," alongside land, labor, capital, and entrepreneurship. The government argues that data should be viewed as an economic resource capable of generating wealth within the so-called knowledge economy.

These new measures are part of the so-called Axis 21 of Digital Transformation, Artificial Intelligence, and Knowledge Economy, included in the broad reform program introduced by Marrero.

While the regime maintains that these decisions do not signify a departure from the socialist model but rather an adaptation to current circumstances, the announcements indicate a growing trend towards liberalizing sectors historically reserved for state control.

The invitation to foreign investment in sensitive areas like ETECSA’s data centers also highlights the severity of the economic crisis facing the country. After decades of promoting technological sovereignty under state control, Havana now finds itself compelled to seek external partners to modernize essential infrastructure and support projects related to digitalization and artificial intelligence.