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OpenAI, Sur Energy Strike Deal to Advance Patagonia ‘Stargate’ as Argentina Seeks AI Hub Status

The agreement underscores a strategy to use Patagonia’s clean power with cool temperatures for hyperscale computing.

Overview

  • OpenAI confirmed an agreement with Argentine developer Sur Energy to move forward on a large-scale Stargate data center in Patagonia.
  • OpenAI said Sur Energy will develop energy and infrastructure and lead a consortium that includes a cloud infrastructure partner.
  • The company stated it wants the data center ecosystem to run on safe, efficient, sustainable energy and expressed interest in becoming an offtaker of energy or services from the project.
  • Argentine media report an estimated investment of about $25 billion, while national officials promote the effort as part of President Javier Milei’s push to position the country as a regional AI hub.
  • Experts highlight advantages such as renewable power, natural cooling and available land, alongside hurdles that include limited high-performance infrastructure, macroeconomic volatility and weak links between academia and industry.