OpenAI and Sur Energy Announce $25 Billion AI Data Center in Argentine Patagonia

Historic Investment for Latin American AI Infrastructure

OpenAI, the company behind ChatGPT, has officially announced a groundbreaking partnership with Argentine firm Sur Energy to construct a $25 billion artificial intelligence data center in Argentina's Patagonia region. This ambitious undertaking, dubbed 'Stargate Argentina,' represents the first such facility in Latin America and is poised to be one of the largest infrastructure initiatives in Argentina's history. The announcement was made following a meeting between Argentine President Javier Milei and executives from both companies on Friday, October 10, 2025.

The project is designed to host the next generation of AI computing, with a planned capacity of up to 500 MW, powered entirely by renewable energy sources. Patagonia's abundant potential for hydroelectric, wind, and solar power, along with its natural cooling advantages due to low temperatures, were cited as key factors in the location choice.

Strategic Partnership and Economic Impact

The 'Stargate Argentina' initiative will be structured as a joint venture, with Sur Energy taking the lead in energy and infrastructure development. OpenAI will serve as the primary buyer of the computing capacity generated by the facility, ensuring its viability. While OpenAI is not directly funding the construction, its commitment to purchase the output is crucial for the project's success.

The Argentine government has confirmed that the project will operate under the country's 'Régimen de Incentivos para Grandes Inversiones' (RIGI) scheme, which offers significant fiscal and customs benefits to attract major foreign capital into strategic sectors. This investment is expected to generate thousands of direct and indirect jobs during its development and operation, alongside a consistent flow of digital exports.

OpenAI's Vision and Regional Significance

Sam Altman, CEO of OpenAI, emphasized the broader implications of the project in a video message, stating, 'This is our first Stargate project in Latin America, a region full of talent, creativity and ambition. This milestone is about more than just infrastructure. It's about putting AI into the hands of people across Argentina.' He further noted President Milei's vision for how AI can drive Argentina's growth and creativity.

The 'Stargate Argentina' project is part of OpenAI's larger global 'Stargate' initiative, which involves an estimated $500 billion in worldwide investments to develop a network of next-generation data centers. While OpenAI has similar projects in other countries, including Germany, Norway, Japan, and South Korea, the Patagonia facility is slated to be its largest to date. The partnership also includes plans to expand access to OpenAI technology across Argentina through the 'OpenAI for Countries' initiative, initially targeting government agencies.

Timeline and Future Outlook

Construction on the initial phase of the data center is anticipated to commence in 2026, with completion expected within 12 months. An initial operational capacity of 100 MW is projected by the end of 2027, with gradual expansion towards the full 500 MW. The exact location within Patagonia is still being finalized, with companies analyzing sites near urban centers.

This strategic move is seen not only as a technological decision but also as a geopolitical one, reinforcing ties between the United States and Argentina. Argentina's high adoption rate of ChatGPT and its position among the top Latin American countries for AI developers further underscore its appeal as an AI hub.