Patagonia courts OpenAI-backed data centers as US sites face backlash

Argentina’s Patagonia is attracting data-center developers as U.S. projects face community opposition over electricity demand, environmental effects, grid strain and rising utility costs. Investors are drawn to the region’s cool climate, renewable wind and hydroelectric resources, Vaca Muerta shale gas, available land and tax incentives under Argentina’s RIGI regime. Proposed projects include an OpenAI-Sur Energy facility of up to 500 megawatts and $25 billion, a potential 500-megawatt Pampa Energía site near Neuquén, and additional developments in Chubut and Bahía Blanca. The projects could support rapidly growing artificial-intelligence workloads, but developers still need to secure financing, reliable power infrastructure and high-capacity fiber connectivity. Analysts caution that many plans remain preliminary, while Argentina’s economic and political outlook—including future investment incentives—will influence whether they proceed.