Patagonia Draws AI Data Centers
Argentina’s Patagonia region is emerging as a primary target for large artificial intelligence data centers, according to a report by The Decoder citing Reuters. The region’s appeal stems from its cool climate, abundant hydropower, wind energy, shale gas from the Vaca Muerta formation, and vast tracts of empty land.
Local power producer Pampa Energia plans to build a facility of up to 500 megawatts in Neuquen province and is currently seeking investors, with initial contracts anticipated by late 2026. Interested parties are reportedly looking to begin operations with blocks of 20 to 40 megawatts, though the grid infrastructure for the complete build-out is estimated to cost around $900 million. Additionally, Polish firm Green Capital aims to initiate a 300-megawatt project in Chubut, with long-term plans reaching 3,000 megawatts. OpenAI previously announced a potential project with Sur Energy in October, though the agreement remains unsigned.
Unlike the United States, where data center expansions often face heavy community resistance, Argentina has seen virtually no pushback against server farms because the nation hosts very few large facilities at present. However, that dynamic may soon shift. Pampa plans to construct its facility near the Loma de la Lata power plant, an area inhabited by Indigenous Mapuche families who have previously clashed with energy companies. Additional challenges include securing grid connections, laying undersea cables, and navigating potential shifts in investment stability following the 2027 presidential election.
Based on reporting by the-decoder.com.
