OpenAI targets Argentina's freezing Patagonia for $25 billion 500MW Stargate AI data center — Green Capital and FlexDomes prep 120 to 3,000MW wind-powered server farms to skirt US backlash
Patagonia is becoming increasingly attractive to hyperscalers seeking to avoid the fuss of planning regulations and public opposition.
OpenAI is aggressively pursuing a plan to establish a data center in Patagonia, Argentina, with a potential investment of $25 billion in a 500MW facility. The Argentine energy conglomerate, Pampa Energia, is in discussions to develop the site, using thermal power from the Vaca Muerta shale gas formation. OpenAI is among several tech giants, including Google, Apple, and Meta, eyeing Argentina's Patagonia for its potential as a data center hub.
The region's low temperatures aid cooling, while abundant clean energy sources like hydroelectric power and wind farms make it an alluring proposition. However, there are significant hurdles to overcome, such as upgrading data links and addressing concerns from local Mapuche Indigenous communities. Despite these obstacles, OpenAI continues to advance the project, but the timeline remains uncertain due to political instability in Argentina.
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