Patagonia has what AI data centers want, including no resistance so far
Developers are eyeing Argentina's Patagonia for AI data centers; Pampa Energía plans up to 500 MW in Neuquén, with grid buildout near $900 million.
Reuters reporting highlights Argentina's Patagonia as a candidate region for large AI data centers, drawing on cool climate, hydropower, wind energy, and Vaca Muerta shale gas. Pampa Energía plans a facility of up to 500 MW in Neuquén province, is seeking investors with first contracts expected by end of 2026, and estimates grid infrastructure alone at around $900 million. Green Capital targets an initial 300 MW in Chubut scaling to 3,000 MW, while OpenAI's announced project with Sur Energy remains unsigned. Open questions include grid connections, undersea cables, potential conflicts with Indigenous Mapuche families, and investment stability after the 2027 presidential election.
- Pampa Energía plans up to 500 MW in Neuquén, seeking investors
- Green Capital targets 300 MW in Chubut, 3,000 MW long term
- OpenAI-Sur Energy project announced but not yet signed
- Grid buildout for full plan estimated around $900 million
- Risks include Mapuche land conflicts and post-2027 election stability
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Argentina's Patagonia is drawing attention as a possible site for large AI data centers. A cool climate, hydropower, wind energy, shale gas from the Vaca Muerta formation, and plenty of empty land are the draw, according to a Reuters report.
Power producer Pampa Energía plans a facility of up to 500 megawatts in Neuquén province and is looking for investors, with the first contracts expected by the end of 2026. Interested parties want to start with 20 to 40 megawatts. The grid infrastructure for the full build-out alone would cost around $900 million. Polish company Green Capital wants to start with 300 megawatts in Chubut, with 3,000 megawatts planned over the long term. OpenAI announced a project with Sur Energy back in October, but it hasn't been signed yet.
Unlike in the US, there's been no pushback against server farms in Argentina so far, because the country barely has any large facilities yet. That could change. Pampa wants to build next to its Loma de la Lata power plant, and Indigenous Mapuche families live there who have clashed with energy companies several times before. Grid connection, undersea cables, and how stable investment conditions will be after the 2027 presidential election also remain open questions.
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