OpenAI’s proposed data center in Argentina’s Patagonia region remains stalled at the letter of intent stage, over a year after its announcement with a potential investment of up to $25 billion, according to Bloomberg Línea. The project, named Stargate Argentina, has not applied to join the country’s Large Investment Incentive Regime (RIGI), despite earlier projections that it would begin construction in 2026.
Project Stalled in Preliminary Stages
The facility, announced on October 10, 2025, following a meeting between President Javier Milei and OpenAI representatives, was designed to deliver up to 500 megawatts of computing capacity. However, a definitive contract has not been signed, leaving construction without a formal starting point. In August, Sur Energy co-founder Emiliano Kargieman confirmed negotiations with OpenAI continue but noted the project has not advanced beyond the initial letter of intent to a binding agreement.
OpenAI has characterized itself as a potential buyer of computing capacity, contingent on energy and infrastructure development led by Sur Energy. Kargieman stated that approximately $18 billion of the proposed investment would fund Nvidia chips, describing the equipment as temporary imports. He argued the long-term economic value lies in establishing an export industry for computing services, potentially generating tens of billions annually using Patagonia’s renewable energy resources.
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The site in the Confluencia area of Neuquén province was selected in coordination with provincial authorities, but no definitive contract with OpenAI has been secured.
Economic Ambitions and Energy Constraints
Milei aims to position Argentina as a major destination for artificial intelligence infrastructure, recently declaring the country suitable for data centers. His administration previously outlined a 2024 goal of making Argentina the world’s fourth AI hub. Energy availability has emerged as a key consideration, with Marcelo Mindlin of Pampa Energía noting at Argentina Week in Paris that data centers increasingly prioritize proximity to power supplies. Mindlin predicted Pampa would have nearly 800 megawatts available next year, highlighting Argentina’s potential in this space.
Despite agreements with energy suppliers Central Puerto and Genneia, and infrastructure partner Fluidstack, Stargate Argentina remains in preliminary stages. Earlier projections anticipated an RIGI application submission earlier this year, but the project has not met this timeline. The government is simultaneously advancing a proposed expansion of the investment incentive framework, Súper RIGI, which received initial legislative approval and seeks to facilitate data center development.
