OpenAI, Argentina Partner on $25B Patagonia Data Center

Argentina is betting big on artificial intelligence — and OpenAI.

The government announced Oct. 10 that the U.S.-based AI giant signed a letter of intent with Argentine-U.S.-owned Sur Energy to build a large-scale data center in Patagonia. The project, dubbed “Stargate Argentina,” is pitched as a $25 billion bet to make the country a regional tech powerhouse powered by renewable energy, the Buenos Aires Herald reported.

A presidential news release called the initiative a “pioneering artificial intelligence infrastructure project” that would put Argentina “at the forefront of the global artificial intelligence ecosystem.” The data center is expected to reach a capacity of up to 500 megawatts — massive even by global standards — and run primarily on renewables, according to the official statement.

The announcement came after President Javier Milei and Argentine Nuclear Board chief Demian Reidel met with OpenAI representatives in Buenos Aires, led by Chief Global Affairs Officer Chris Lehane. In OpenAI’s announcement about the project, the company cited Argentina’s high ranking in use of OpenAI’s developer tools among Latin American countries and growing developer ecosystem among the reasons for choosing Argentina.

The project will operate under Argentina’s RIGI investment program, which grants major investors — those pledging at least $200 million in foreign currency — tax breaks and exchange-rate benefits designed to lure large-scale international capital.

In a video presentation confirming the deal, OpenAI CEO Sam Altman called Stargate Argentina “more than just infrastructure,” saying it was about “putting artificial intelligence in the hands of people across Argentina” and helping the country evolve into an AI hub for Latin America.

Local partner Sur Energy is part of the investment group Sur Ventures, founded by the late tech entrepreneur Matías “Mat” Travizano. Travizano’s associate Emiliano Kargieman said the project marked a “historic opportunity” to position Argentina as a “key player in the new global digital and energy landscape.”

Milei’s tech diplomacy has been on the rise. During a five-day trip to San Francisco in May, he met with Altman, Google’s Sundar Pichai, and Apple’s Tim Cook, and delivered a headline-grabbing speech at Stanford University. The president later posted a photo with Altman on X, writing that they discussed the “enormous possibilities a libertarian Argentina offers.”

Stateside, the first Stargate campus opened in Abilene earlier this year. Five more Stargate centers are on tap, including locations in Shackleford County and Milam County in Texas, as well as Lordstown, Ohio and Doña Ana County, New Mexico. Another is planned for the Midwest.

About seven gigawatts of capacity for AI-related data processing will be reached once all five are completed. The U.S. efforts represent a joint venture between Oracle, OpenAI and SoftBank, involving a $400 billion investment over three years.

— Eric Weilbacher