OpenAI to Establish Landmark $25 Billion Data Center in Argentina's Patagonia

OpenAI Unveils 'Stargate Argentina' Initiative

OpenAI, the artificial intelligence research and deployment company, has officially announced its intention to construct a massive data center in Patagonia, Argentina. This ambitious project, named 'Stargate Argentina,' marks OpenAI's first data center venture in Latin America and represents a significant technological investment in the region. The initiative is projected to involve an investment of up to $25 billion USD, making it one of the largest technology and energy infrastructure projects in Argentina's history.

The announcement was made following a meeting between Argentine President Javier Milei, representatives from OpenAI, and executives from Sur Energy at the Casa Rosada. President Milei stated on X that the project is 'a pioneering Artificial Intelligence infrastructure project that will position Argentina at the forefront of the global artificial intelligence ecosystem.'

Strategic Partnership and Capacity

The 'Stargate Argentina' project will be a collaborative effort between OpenAI and Sur Energy, an Argentine-U.S. owned company. Sur Energy is tasked with leading the construction and ensuring the data center operates on secure, efficient, and sustainable power sources. The planned facility is designed to have a substantial capacity of up to 500 megawatts (MW), dedicated to supporting advanced AI computing needs.

OpenAI CEO Sam Altman emphasized the broader impact of the project, stating, 'This milestone is about more than just infrastructure. It's about putting artificial intelligence in the hands of people across Argentina. We are excited to work with Argentina as it moves toward becoming an AI hub for all of Latin America.' He also highlighted Latin America as a region 'full of talent, creativity and ambition.'

Government Support and Renewable Energy Focus

The investment is structured under Argentina's Incentive Regime for Large Investments (RIGI), a government program designed to attract significant international capital through various incentives, including tax breaks. This framework underscores the Argentine government's commitment to fostering technological innovation and attracting foreign direct investment.

A key aspect of the data center's design is its reliance on renewable energy. The facility will leverage Patagonia's abundant natural resources, particularly its strong winds, to supply clean power for its intensive computing operations. This focus aligns with global efforts to make large-scale data centers more environmentally sustainable.

Global 'Stargate' Expansion

The 'Stargate Argentina' initiative is part of OpenAI's broader global strategy to build a network of next-generation data centers. This global 'Stargate' project involves an estimated $500 billion USD investment over four years to develop AI infrastructure worldwide, with other sites already established or planned in the United States, the United Arab Emirates, and Norway. OpenAI will serve as the primary user of the computing capacity provided by the new data center in Argentina. While an exact construction timeline has not been fully disclosed, local reports suggest that work could commence next year, with an initial 100MW phase potentially operational around 2027.