TLDRs;
- OpenAI plans to invest up to $25 billion in a large-scale AI data center in Argentina.
- The “Stargate Argentina” project will have a 500MW capacity for advanced AI computing infrastructure.
- The facility will operate under Argentina’s RIGI tax incentive program to attract foreign tech investment.
- OpenAI CEO Sam Altman says it’s the company’s first major project in Latin America.
OpenAI is set to make one of the largest technology investments in Latin American history with its plan to build a $25 billion data center in Argentina.
The initiative, dubbed “Stargate Argentina”, will be developed in partnership with Sur Energy, marking OpenAI’s most ambitious international infrastructure project to date.
According to Argentina’s government announcement on Friday, the project envisions a state-of-the-art facility with up to 500 megawatts of capacity, capable of supporting advanced artificial intelligence computing needs for OpenAI’s rapidly expanding ecosystem.
The venture aligns with Argentina’s drive to attract large-scale foreign investment in technology and energy, a sector the government hopes to modernize as global AI demand surges.
Sur Energy Joins Forces With OpenAI
The partnership between OpenAI and Sur Energy, one of Argentina’s leading renewable energy developers, underscores a commitment to sustainable growth and energy-efficient innovation.
While details of the site’s location and timeline have not been disclosed, both companies are exploring how to integrate renewable energy sources to power the data center’s vast computing workloads.
OpenAI’s CEO Sam Altman described the initiative as a milestone for the company’s global expansion strategy.
“We are proud to announce plans to launch Stargate Argentina, an exciting new infrastructure project in partnership with Sur Energy,” Altman said on social media. “It’s our first Stargate project in Latin America, a region full of talent, creativity, and ambition.”
The collaboration could set a new precedent for AI infrastructure development in emerging markets, blending energy innovation with next-generation computing capabilities.
Backed by Argentina’s RIGI Incentive Scheme
The Stargate project will operate under Argentina’s Régimen de Incentivo para Grandes Inversiones (RIGI), a tax incentive framework introduced in 2024 to attract large-scale investments in strategic sectors like energy, data, and technology.
Through RIGI, qualified projects can benefit from import tax exemptions, accelerated depreciation, and long-term fiscal stability, creating a favorable environment for major global investors. Officials said if the project proceeds as planned, it would rank among the largest technology and energy infrastructure projects in Argentina’s history.
The government hopes this partnership will spur job creation, technology transfer, and a broader digital ecosystem capable of positioning Argentina as a regional hub for AI and data innovation.
Altman Touts Latin America’s AI Ambitions
The announcement follows a string of major OpenAI developments, including a secondary share sale that boosted the company’s valuation to $500 billion, making it the world’s most valuable startup. OpenAI also recently reported over 800 million weekly ChatGPT users, signaling explosive global demand for generative AI tools.
The Stargate Argentina project mirrors similar large-scale tech infrastructure efforts emerging across Latin America, such as TikTok’s $9.1 billion data center in Brazil, as the region increasingly becomes a focal point for cloud and AI expansion.
For Argentina, the deal could mark a turning point, attracting cutting-edge innovation and solidifying its role in the global digital economy. For OpenAI, it signals a bold step toward decentralizing its AI infrastructure footprint and tapping into a new pool of regional talent.
