OpenAI to Build $25 Billion Data Center in Argentina

OpenAI’s $25 Billion Data Center in Argentina

OpenAI is teaming up with Argentina’s Sur Energy in a plan to build a massive AI infrastructure project in Patagonia. The “Stargate Argentina” initiative carries an estimated investment of $25 billion and envisions a 500-megawatt facility aimed at transforming Argentina’s tech landscape.

Project overview & strategic importance

Launched under Argentina’s RIGI (Incentive Regime for Large Investments), Stargate Argentina is intended to bring large foreign capital into the country and spur digital transformation. The government and OpenAI have signed a Letter of Intent, making the project one of the most ambitious tech and energy infrastructure endeavors in Argentina’s history.

The site in Patagonia was chosen for its ample land and renewable energy potential. While the complete timeline is still being finalized, local sources suggest construction may begin as early as next year, with an initial 100 MW phase possibly coming online by 2027.

Regional & global ambitions

OpenAI CEO Sam Altman hailed Stargate Argentina as a milestone for Latin America. Calling it the first “Stargate” project in the region and citing the region’s abundance of talent, ambition, and creativity.

This effort is in line with OpenAI’s broader strategy of deploying infrastructure globally. Continuing similar efforts in the United States, Norway, and the UAE. The Argentina facility is not just a regional anchor, but part of a global push to scale computing power to support advanced AI models such as ChatGPT and beyond.

Economic & technological impact

If fully realized, Stargate Argentina may deliver multiple benefits:

  • Job creation and stimulus to Argentina’s tech sector
  • Foreign investment inflows, raising the country’s profile in global AI
  • Capacity expansion for AI computing, helping OpenAI meet growing demand for high-performance infrastructure
  • Sustainability alignment, leveraging Patagonia’s renewable energy potential

For OpenAI, this project is both a technological and economic bet—part of the long-term infrastructure backbone required to support increasingly ambitious AI systems.

Spencer is a tech enthusiast and an AI researcher turned remote work consultant, passionate about how machine learning enhances human productivity. He explores the ethical and practical sides of AI with clarity and imagination. Twitter

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