Artificial intelligence powerhouse OpenAI is making a bold play in South America. The company plans to build a massive data center in Argentina’s Patagonia region. This ambitious project, named "Stargate Argentina," aims to pour an estimated $25 billion into the country’s technological backbone. It marks the largest such infrastructure investment in Argentina’s history.
The goal is pretty clear: turn Argentina into Latin America’s top spot for artificial intelligence. This means the country could soon generate and export huge amounts of computing power worldwide. People close to the deal say this move reflects strong diplomatic ties with the United States. It also shows a belief that Argentina holds a key position in the region. News outlet Infobae first reported these details.
🚨 OpenAI is allocating USD $25,000 million to build a mega data center in Argentina 🚨
The Stargate project aims to turn the country into Latin America’s main AI hub.
Located in Patagonia, it will have a capacity of 500 megawatts.
Driven by Sur Energy, the… pic.twitter.com/H1VZzsD4rf
— Diario฿itcoin (@Blaze Trends)
A Partnership Built on Big Ideas
This big project comes from a partnership between OpenAI and Sur Energy. Sur Energy was founded by Argentine entrepreneurs Emiliano Kargieman and the late Mat Travizano. They’re working with a global cloud developer and some local energy companies. OpenAI will play a key role as an "offtaker." This means OpenAI promises to buy the computing power the center creates, which makes the whole project financially sound.
Sam Altman, the CEO of OpenAI, spoke about the deal. He said, "This milestone goes beyond infrastructure. It is about putting artificial intelligence in the hands of the people of Argentina." This project is part of OpenAI’s global "Stargate" plan. This strategy includes similar investments in places like Germany, Norway, Japan, and South Korea. However, the Argentine center will be the biggest one yet.
Clean Energy Powers a Tech Engine
The data center will have a total capacity of 500 megawatts. To put that in perspective, the entire region currently uses around 150 megawatts of power. This makes it Latin America’s largest data center of its kind. The initial building phase, covering structures, cooling systems, and server racks, will cost $7 billion. After that, Nvidia’s GPU units will be installed bit by bit to handle the AI processing.
The energy needed will come from local companies like Central Puerto and Genneia. They have long-term deals that focus on renewable power sources. Kargieman pointed out that the project brings together "Argentina’s unique potential in renewable energy with critical infrastructure for the future of artificial intelligence." He added that this partnership makes the country "a key player in the new global digital and energy map."
The announcement happened during a meeting led by President Javier Milei. He met with Chris Lehane, OpenAI’s Chief Global Affairs Officer, at the presidential residence in Olivos. Kargieman and other company executives were also there. Lehane, who used to be Vice President Al Gore’s press secretary, has been leading OpenAI’s global efforts for two years.
Argentina as an AI Hub for the Region
The "Stargate Argentina" initiative will fall under the country’s Large Investment Incentive Regime (RIGI). Its first funding stage is expected to be between $7 billion and $10 billion. Right now, five possible spots in Patagonia are being looked at for the center. Construction for the first phase is set to begin next year.
This plan is expected to create thousands of specialized jobs. It will also combine exporting services with local use. Argentine companies, government bodies, and universities will be able to buy computing power. They can use it for their own projects in areas like education, health, and industry.
OpenAI says that about 30% of Argentine companies already use AI solutions. This number could jump to 70% by 2026. Argentina is also among the top five countries in Latin America for paid ChatGPT subscriptions. It’s showing fast growth in using OpenAI’s API, too.
A Global Project with Local Roots
The "Stargate Argentina" construction is part of an even bigger plan. OpenAI and its partners, including Microsoft, Nvidia, Oracle, SoftBank, and Arm, are investing $500 billion globally. This huge sum is for building AI infrastructure across different continents.
In related news, Demian Reidel, who leads Nucleoeléctrica Argentina, wants to add nuclear energy to future parts of the project. This would help meet the growing demand for computing power. OpenAI, for its part, states that its ultimate goal is to help each country create "sovereign AI." This means AI that is built and adapted to each nation’s unique needs and values.
The Argentine Presidency noted that the meeting "reflects OpenAI’s interest in investing in technological infrastructure that expands the reach of artificial intelligence globally, in line with national plans for sustainable innovation."