The so-called Stargate Argentina initiative is part of a new partnership between OpenAI and local energy firm Sur Energy
In sum – what to know:
OpenAI targets Latin America – Plans for a 500 MW data center in Argentina mark its first regional footprint, part of the expanding Stargate global buildout.
Massive $25B investment – The project, under Argentina’s RIGI incentives, would be among the largest tech infrastructure investments in the country’s history.
Renewables and resilience – Patagonia’s energy resources make the site ideal for sustainable AI compute.
U.S. AI company OpenAI is planning its first data center in Latin America, a 500-megawatt facility in southern Argentina that could become one of the largest digital infrastructure projects in the region’s history.
The so-called Stargate Argentina initiative is part of a new partnership between OpenAI and local energy firm Sur Energy, which have signed a Letter of Intent to co-develop the site. The facility — potentially backed by up to $25 billion in investment — will be built under Argentina’s RIGI framework for large-scale projects, offering fiscal incentives for foreign developers.
The data center is expected to support OpenAI’s next generation of AI workloads, powered by renewable energy sourced from Patagonia. The first 100MW phase is slated for completion in 2027, with construction likely to start next year.
Although the exact location of the AI facility is not yet known, Patagonia is globally recognized for its abundant renewable energy potential — including strong wind and hydroelectric resources — and ample freshwater, all of which are critical for powering and cooling large-scale AI data centers.
“The announcement by OpenAI has sparked significant interest — as well as some doubts. On paper, it’s a major development, but there are still too many unanswered questions to get truly excited. It’s unclear where the project will be located, who Sur Energy’s suppliers will be, or who will finance construction — since OpenAI itself is only committing to buy capacity, not build the facility,” Enrique Carrier, head of Argentine consultancy firm Carrier y Asociados, told RCR Wireless News.
“Beyond that, it’s worth noting that what was signed between OpenAI and Sur Energy was only a letter of intent. Although Sam Altman says in his video that Sur Energy is one of the country’s leading energy companies, its tax registration dates back only to March of this year. Media reports indicate that Sur Energy will finance the project along with a partner specializing in cloud infrastructure and local energy ventures, but no names have been disclosed,” Carrier said.
“For that reason, it’s understandable that many have reacted with skepticism, even though Altman himself announced it in a video. Until these questions start to be clarified, it seems wise to treat the matter with caution,” he added.
The move extends OpenAI’s Stargate program, beyond the U.S., Europe and Asia. Sites are already planned in Texas, the U.K., Norway, South Korea, and Germany.