BUENOS AIRES, Oct 11 — In a bold push into Latin America, OpenAI and Argentine energy firm Sur Energy announced a letter of intent Friday to build a massive AI data center in Argentina. The project, tentatively named “Stargate Argentina,” could cost up to $25 billion and house infrastructure to support future generations of artificial intelligence.
Under the plan, the facility would reach a capacity of up to 500 megawatts, making it one of the largest tech-energy integrations ever attempted in the region. The project is being proposed within Argentina’s RIGI tax incentive framework, intended to attract high-capacity industrial investment.
In a social media post, OpenAI CEO Sam Altman called the deal “our first Stargate project in Latin America,” praising Argentina as a country “full of talent, creativity and ambition.” The Argentine government described the plan as “one of the largest technology and energy infrastructure initiatives” in the nation’s history.
If it proceeds, the facility would not only power AI training and inference workloads but also carry major implications for energy and digital sovereignty in the region. For Argentina, it’s a chance to solidify itself as a hub for advanced computing rather than just a commodity exporter. For OpenAI, it offers geographic diversification, access to lower energy costs, and political goodwill in a region often overlooked by Silicon Valley giants.
Still, this kind of project faces huge hurdles. Constructing a 500 MW-scale data center demands extensive power, cooling and grid infrastructure. Regulators will scrutinize environmental impacts and energy commitments. And global competition for AI infrastructure is heating up, with governments worldwide bidding to host data centers.
Supporters believe that Argentina’s vast natural resources might help. The country has untapped potential in renewable energy—wind, solar and hydropower—giving it a theoretical edge for powering energy-heavy AI operations. Yet critics caution that shifting power grids, political volatility, and scale risks could stall or sink even the best-laid plans.
Local analysts tell me there is palpable excitement, tinged with cautious optimism. “If it works, it changes how Latin America is seen in the tech world,” one Buenos Aires startup founder said. “But you need steady regulation, stable energy, and real delivery—not just grand announcements.”
In global markets, this announcement isn’t happening in isolation. Just days ago, tech infrastructure firms were riding strong momentum. Applied Digital’s shares jumped 26 percent after it delivered strong quarterly revenues driven by AI demand. Meanwhile, chipmaker Intel revealed plans for its next-generation Panther Lake processor, built on its new 18A production process—part of its push to reclaim dominance in high-end PC chips.
Among all this, the OpenAI-Argentina deal might seem like the boldest gamble. There are no guarantees. But for a region still often treated as a back office for richer nations, it signals ambition.
If the project succeeds, it could transform Argentina’s place in the digital economy—and redefine how we think about the geography of AI. In that possibility lies the weight of today’s announcement: part manifesto, part experiment.
Source: Reuters
