Argentina’s Patagonia is drawing attention as a possible site for large AI data centers. A cool climate, hydropower, wind energy, shale gas from the Vaca Muerta formation, and plenty of empty land are the draw, according to a Reuters report.

Power producer Pampa Energía plans a facility of up to 500 megawatts in Neuquén province and is looking for investors, with the first contracts expected by the end of 2026. Interested parties want to start with 20 to 40 megawatts. The grid infrastructure for the full build-out alone would cost around $900 million. Polish company Green Capital wants to start with 300 megawatts in Chubut, with 3,000 megawatts planned over the long term. OpenAI announced a project with Sur Energy back in October, but it hasn’t been signed yet.

Unlike in the US, there’s been no pushback against server farms in Argentina so far, because the country barely has any large facilities yet. That could change. Pampa wants to build next to its Loma de la Lata power plant, and Indigenous Mapuche families live there who have clashed with energy companies several times before. Grid connection, undersea cables, and how stable investment conditions will be after the 2027 presidential election also remain open questions.