technology•Mon, September 28, 2026•4 min read

OpenAI's $25 Billion Stargate Bet: Why Argentina is the Next AI Frontier

OpenAI has officially unveiled plans for a $25 billion data center in Argentina, marking its first Stargate-branded project in Latin America. The massive facility aims to harness the region's renewable energy to power the next generation of global AI infrastructure.

A New Power Hub in Patagonia

OpenAI is officially expanding its global infrastructure footprint into South America. On October 10, 2025, the AI research giant and energy integrator Sur Energy announced a monumental deal to develop a data center in Argentina’s Patagonia region. Known as 'Stargate Argentina,' the project is set to cost up to $25 billion and represents a significant milestone in OpenAI’s strategy to secure compute capacity worldwide.

The facility is expected to reach a capacity of up to 500 megawatts, making it the largest data center in Latin America. By surpassing existing facilities in Brazil, Chile, and Mexico, this site positions Argentina as a central pillar in OpenAI’s international 'Stargate' initiative, which already includes projects in the UAE, Norway, and the UK.

Why Argentina? Energy and Infrastructure

The decision to build in Patagonia is not arbitrary. Argentina’s renewable energy potential serves as a key driver for the project, aligning with OpenAI’s requirements for massive, sustainable power to fuel high-compute AI models. Under President Javier Milei’s administration, the project is being structured under the country’s investment incentive regime, known as RIGI, which is designed to attract large-scale international capital.

Project scale: Up to 500 MW capacity.
Investment: Estimated at $25 billion.
Timeline: First 100 MW phase targeted for 2027.
Strategic goal: Turn Argentina into a primary AI hub for Latin America.

This alliance turns Argentina into a relevant player in the world’s new digital and energy map, creating quality jobs, attracting international investment, and demonstrating that innovation and energy can be complementary engines of sustainable growth.
— OpenAI, Official Announcement

The Global Stargate Strategy

Stargate Argentina is just one piece of a much larger puzzle. As OpenAI continues to navigate the intense demand for compute, it has adopted an 'OpenAI for Countries' model. This initiative aims to build localized, massive-scale data centers that operate under regional partnerships. While critics have raised questions regarding the long-term job creation and construction costs of such massive undertakings, OpenAI remains committed to the vision of putting AI infrastructure into the hands of more nations.

Key Takeaways

OpenAI and Sur Energy announced a $25 billion data center project in Patagonia, Argentina.
The 500 MW facility will be the largest of its kind in Latin America.
The project utilizes Argentina's renewable energy resources to support large-scale AI compute.
Development is structured under Argentina's RIGI investment incentive regime.
The site is part of a broader international effort by OpenAI to expand compute capacity across the UAE, Norway, UK, and South America.

FAQ

What is the Stargate Argentina project?

Stargate Argentina is a collaborative $25 billion data center project between OpenAI and Sur Energy, designed to build a 500 MW facility in Patagonia.

When will the facility be operational?

The project is planned in phases, with the first 100 MW phase currently targeted for 2027.

Why did OpenAI choose Argentina?

Argentina was chosen for its significant renewable energy potential and the government's focus on creating an environment that encourages international AI infrastructure investment.

Is this OpenAI's only international data center?

No. OpenAI has launched or announced several Stargate-related projects internationally, including sites in the UAE, Norway, and the UK.