Patagonia lures AI data centers with hydropower and empty land
argentina's patagonia region is attracting ai data centers with its cool climate, hydropower, and empty land, but challenges like grid infrastructure and indigenous resistance may arise.
argentina's patagonia region is emerging as a potential site for large ai data centers due to its cool climate, hydropower, wind energy, shale gas, and abundant empty land. power producer pampa energía is planning a facility of up to 500 megawatts in neuquén province and is seeking investors, with the first contracts expected by the end of 2026. polish company green capital wants to start with 300 megawatts in chubut, with a long-term plan for 3,000 megawatts. openai has also announced a project with sur energy, although it has not been signed yet. unlike in the us, there has been no significant pushback against server farms in argentina so far, but this could change, particularly with indigenous mapuche families living near proposed sites. challenges such as grid infrastructure costs, estimated at around $900 million, and stable investment conditions after the 2027 presidential election also need to be addressed.