Tech companies look to Argentina’s windswept Patagonia to build massive data centers

Argentina's Patagonia region is attracting investors seeking sites for large data centers, drawn by the area’s cool temperatures, renewable energy, shale gas, and available land. As tech giants, called hyperscalers, race to build server farms worldwide, Argentina stands out due to its lack of public opposition to data centers, unlike other regions.

Local electricity provider Pampa Energia is eyeing a data center near its thermal power plant in Neuquen province, which could consume up to 500 megawatts of energy from nearby shale gas fields. The project has only recently gained traction after receiving inquiries about data center development in Argentina. With a favorable political climate under President Javier Milei, who has introduced tax incentives and regulatory stability, Argentina is becoming an attractive destination for large-scale data centers.

Companies like OpenAI and Amazon are also eyeing data centers in Patagonia, with OpenAI partnering with a local firm to build a $25 billion, 500 MW facility powered by clean energy. However, there are still hurdles to overcome, such as infrastructure and connectivity. Still, experts believe that once the first project is established, it will help dispel preconceptions and attract further investment to the region.