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OpenAI Signs Letter of Intent for $25 Billion AI Data Center in Argentina’s Patagonia

The project aligns with President Javier Milei’s 30-year incentive regime to attract strategic foreign investment.

Overview

  • The government said the Stargate Argentina project with local partner Sur Energy would target up to 500 MW to support next‑generation AI computing.
  • Officials did not disclose the exact Patagonian site or start date as analysts flagged connectivity, power transmission, logistics, labor and potential water‑use challenges.
  • Reporting describes the venture as part of a broader multi‑country Stargate program totaling roughly $500 billion in new data‑center investments.
  • Fidji Simo, OpenAI’s number‑two executive, told AFP the heavy infrastructure spending is necessary to meet user demand and does not signal a bubble.
  • Local coverage from La Nación, cited by Poder360, reports a plan to use renewable energy with construction starting in 2026 and an initial 100 MW online by late 2027, details that have not been confirmed by the government.