OpenAI and Sur Energy Announce $25 Billion AI Data Center in Argentina's Patagonia

OpenAI has partnered with Sur Energy to develop a large-scale data center in Argentina's Patagonia region. The project, named Stargate Argentina, is expected to have a capacity of up to 500 megawatts and represents an estimated investment of up to $25 billion.

The initiative is part of Argentina's Incentive Regime for Large Investments (RIGI), which offers tax breaks and incentives for foreign investments exceeding $200 million. The data center aims to position Argentina as a hub for technological innovation in Latin America and is expected to utilize renewable energy sources.

OpenAI CEO Sam Altman stated that the project is "about putting artificial intelligence in the hands of people across Argentina."

Construction is set to begin next year, with the first 100MW phase expected to launch in 2027. OpenAI will act as the primary customer for the computing power generated by the facility.

The Stargate Argentina project is considered one of the largest energy technology and infrastructure initiatives in Argentina's history, reflecting the country's commitment to advancing its technological capabilities and attracting significant foreign investment.