OpenAI to Build $25B AI Mega Data Center in Patagonia
The project is being hailed as the largest infrastructure initiative in Argentina’s history, aiming to position the country as an AI hub.
Quick overview
- OpenAI is partnering with Sur Energy to build a $25 billion AI data center in Patagonia, Argentina.
- This initiative is the largest infrastructure project in Argentina's history and aims to establish the country as a leading AI hub in the region.
- The decision is influenced by geopolitical factors, particularly the strong ties between the U.S. and Argentina.
- Construction is set to begin next year, with OpenAI committing to purchase all computing power generated by the facility.
The company behind ChatGPT will be part of creating a pioneering data center in the region. While described as a technological decision, it is primarily a geopolitical move, framed within the context of U.S.-Argentina relations.
OpenAI announced a strategic partnership with Sur Energy, a “clean energy” company founded in the U.S. by two Argentine entrepreneurs and investors, to drive the construction of a massive artificial intelligence data center in Patagonia, with an estimated total investment of up to USD 25 billion.
The project is being hailed as the largest infrastructure initiative in Argentina’s history, aiming to position the country as the region’s leading AI hub, generating and exporting the computing power produced by the facility.
Sources indicate that OpenAI’s choice of Argentina is influenced by the country’s strong ties with the U.S. While the company sees the project as a technological venture, it is also a geopolitical bet. Like the Trump administration, OpenAI views Argentina as a regional leader and highlights a sense of “affinity.” “They moved fast,” insiders said.
“This milestone goes beyond infrastructure. It’s about putting artificial intelligence in the hands of people across Argentina,” said Sam Altman, CEO of OpenAI. The project, named Stargate Argentina, will be the largest component of OpenAI’s global Stargate strategy alongside other tech giants.
Datacenters and Large International Investments
“Now is the moment to install AI data centers in Latin America. Being a pioneer is a huge advantage. Regulatory frameworks and geopolitical alignment make Argentina the right place. The potential is enormous,” said another senior source familiar with the project.
Construction on the first phase of the data center is expected to begin next year and be completed within 12 months.
OpenAI will act as the offtaker, purchasing all computing power generated by the facility. This commitment ensures the project’s viability, even though OpenAI is not directly funding the construction.
While OpenAI has similar projects in Germany, Norway, Japan, and South Korea, this will be the largest to date. Earlier today, representatives met with President Javier Milei, including Chris Lehane, Chief Global Affairs Officer at OpenAI, and Emiliano Kargieman, co-founder of Sur Energy and founder of microsatellite company Satellogic.
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