Argentina’s Patagonia region is emerging as a prime site for large-scale AI data centers due to favorable geography and minimal regulatory resistance.

Argentina’s Patagonia region is emerging as a prime candidate for large-scale AI data centers. According to a Reuters report, the area offers a cool climate, abundant hydropower and wind energy, shale gas from the Vaca Muerta formation, and vast tracts of undeveloped land.

Power producer Pampa Energía is planning a facility of up to 500 megawatts in Neuquén province and is currently seeking investors, with initial contracts expected by the end of 2026. Interested parties are looking to begin with projects ranging from 20 to 40 megawatts. The grid infrastructure required for the full build-out alone would cost approximately $900 million. Meanwhile, Polish firm Green Capital aims to launch a 300-megawatt project in Chubut, with long-term plans scaling up to 3,000 megawatts. Additionally, OpenAI announced a partnership with Sur Energy last October, though the agreement remains unsigned.

Unlike in the United States, server farms have faced no significant opposition in Argentina thus far, largely because the country currently hosts very few large-scale facilities—a situation that could shift as development accelerates. Pampa Energía intends to construct its facility adjacent to its Loma de la Lata power plant, where Indigenous Mapuche communities reside and have previously clashed with energy developers. Several critical uncertainties remain, including grid connectivity, the deployment of undersea cables, and whether investment conditions will stabilize following the 2027 presidential election.

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