Patagonia: AI Data Center Projects, Ongoing Uncertainties

Energy and technology groups are targeting Patagonia to establish data centers. While resources and space are abundant, contracts are yet to be signed, infrastructure needs clarification, and local tensions may arise near Loma de la Lata.

Uncertain Infrastructure and Political Context

Several technical aspects remain to be defined, including the connection to the power grid and the issue of the underwater cables necessary for future data centers. The stability of investment conditions after the presidential election in 2027 also remains uncertain. Pampa Energía aims to set up its project near its Loma de la Lata power plant, where indigenous Mapuche families reside and have previously had disputes with energy companies. So far, Argentina has not experienced opposition to server farms, unlike the United States, but this situation could change.

Financially Quantified Projects, Contracts Expected by End of 2026

Pampa Energía plans to establish a facility of up to 500 megawatts in the province of Neuquén and is seeking investors, while the first contracts are expected by the end of 2026. The stakeholders involved anticipate starting with a capacity between 20 and 40 megawatts. According to estimates, the network infrastructure necessary for the entire project would represent a cost of approximately $900 million. Additionally, the Polish company Green Capital aims to start with 300 megawatts in the province of Chubut and has set a long-term goal of 3,000 megawatts. In October, OpenAI announced a project with Sur Energy, but no agreement has been reached yet.

Abundant Energy and Available Land in Patagonia

Patagonia is drawing attention for its cool climate, the availability of hydroelectric and wind energy, as well as access to shale gas from the Vaca Muerta formation. The region also has vast areas of land suitable for the establishment of data centers. Argentina currently has very few large infrastructures of this type, leaving significant room for development.