How AI data centers could find a regulation-free haven at the end of the world
Data centers have become one of the most polarizing issues in the world. Argentina’s president wants to lure as many of them as he can get. As residents and policymakers in the United States and Europe fight the facilities that power artificial intelligence , President Javier Milei is pitching Argentina as a haven, promising a hands-off approach to draw foreign investment his crisis-prone country…
Argentina's President Javier Milei is pitching the South American nation as a haven for artificial intelligence data centers, promising a hands-off approach to regulation. This could provide a regulatory-free environment for data centers, which have become a polarizing global issue. The country's remote Patagonia region offers vast plains, a chilly climate for cooling servers, and powerful winds for renewable energy.
Data center developer Crusoe is exploring potential investments in Argentina, viewing Patagonia as an attractive location due to its favorable geographic and energy conditions. The proposed data centers rely on gas-fired power, with Pampa Energía, a major Argentine energy company, seeking to supply electricity to a data center near Vaca Muerta.
To attract foreign investment, Milei is proposing tax incentives, including reducing the corporate income tax rate to 15% from 25% for projects exceeding $1 billion in AI and other emerging industries. However, experts warn that the lack of regulation could expose Argentina to risks such as mass surveillance and cyberattacks. Despite these concerns, some Argentine ranchers see an opportunity to diversify income by leasing land for data center construction alongside their sheep farming operations.
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