Patagonia becomes a destination for mega data centers and tech investments

Patagonia is attracting growing interest from investors seeking sites for mega data centers, amid the artificial intelligence boom. The region offers low temperatures, vast tracts of land, renewable energy and access to shale gas from the Vaca Muerta formation.

In Neuquén province, Pampa Energia is considering building a data center near the Loma de la Lata power plant, with consumption of up to 500 megawatts. The project would be powered by energy generated near the gas fields. In Chubut, Polish company Green Capital announced a 300-megawatt data center valued at $3 billion, with the possibility of expanding it to 3,000 megawatts. Other projects are being considered in Neuquén and Bahía Blanca.

Investor interest has increased following reforms by President Javier Milei, including the RIGI regime, which offers tax incentives and legislative stability. OpenAI has also announced a partnership for a clean-energy-powered data center estimated to be worth up to $25 billion.

Argentina currently has only small data centers, concentrated in Buenos Aires. Patagonia, however, remains dependent on the development of power grids, infrastructure and connectivity. Specialists warn that many of the announcements currently represent intentions rather than projects actually under construction.##{