The Government of El Salvador is preparing to harness Artificial Intelligence (AI) to analyze geological and geophysical data, aiming to identify high-potential energy zones while reducing exploration costs and risks, announced Daniel Álvarez, Director of Energy, Hydrocarbons, and Mines.

Speaking before the Legislative Assembly’s Technology, Tourism, and Investment Committee on Tuesday, Álvarez explained that the new AI law, expected to be approved this Wednesday, will enable assessments of potential ecological impacts and forecast the performance of geothermal and hydrocarbon reservoirs, including temperature and steam quality.

“This technology will allow us to explore and exploit these resources through advanced algorithms, helping us pinpoint high-potential energy areas,” Álvarez stated. “We will save on drilling costs by having an accurate underground model.”

The initiative includes expanding geothermal and natural gas plants to boost employment and lower exploration expenses. AI will also play a crucial role in maintaining water reservoirs by enabling real-time monitoring of water quality and quantity, predicting demand, and detecting leaks or anomalies in water infrastructure.

“We are positioning ourselves as leaders in technology,” Álvarez said, emphasizing that increasing energy production is vital for supporting El Salvador’s growing demand. “Having more plants means more jobs.”

Álvarez highlighted AI’s broader benefits for sectors like education, security, and transportation, noting its potential to model traffic patterns. “All sectors will benefit,” he added.

However, the AI infrastructure will require significant energy consumption. “AI data centers have high energy demands, which necessitates further expansion of the country’s energy capacity,” Álvarez explained.

During the committee session, Deputy Samuel Martínez from the Nuevas Ideas party asked about measures to establish El Salvador as an international leader in AI innovation and strategies to promote investment and research in the tech sector. Álvarez responded that the new regulation serves as the foundation for broader initiatives, ensuring tangible benefits through public-private collaboration.