OpenAI and Argentine firm Sur Energy have signed a letter of intent for a US$25-billion investment to build a massive artificial intelligence data centre in Argentina’s Patagonia region, a project backed by President Javier Milei’s government and structured to deliver 30-year fiscal and customs benefits to foreign capital.
Who Profits
The project, named Stargate Argentina, was announced by Argentina’s government on Friday, October 10, 2025. It will be the first of its kind in Latin America. The initiative will operate under President Javier Milei’s “Régimen de Incentivos para Grandes Inversiones” (RIGI) incentive scheme, which provides 30-year fiscal and customs benefits to attract foreign capital to strategic sectors.
The project will be developed as a joint venture between Sur Energy and a global cloud infrastructure provider, with OpenAI serving as the primary buyer of computing capacity. OpenAI chief executive Sam Altman said in a video message that Stargate Argentina is the company’s first Stargate project in Latin America. He described the region as “full of talent, creativity and ambition,” and said the project would help make AI accessible across Argentina.
Altman also said he met President Milei during his visit to San Francisco in 2024, and described Milei’s vision for AI-driven growth in Argentina as “unmistakable and strong.”
State Support and Privatization
The announcement followed a meeting on Friday, October 10, 2025, involving President Javier Milei, top officials, and senior executives from OpenAI and Sur Energy. Demian Reidel, an advisor to President Milei and president of state-run Nucleoeléctrica Argentina SA, also attended the meeting. The government plans to part-privatise that state-run company.
President Milei’s office said the meeting reflected OpenAI’s interest in investing in technological infrastructure to expand the global reach of artificial intelligence, aligning with Argentina’s goal to become a sustainable innovation hub.
The exact location and start date of the project were not disclosed. The Stargate Argentina data centre is designed to host the next generation of AI computing, with a capacity of up to 500 MW.
Labor, Energy, and Public Services
Sur Energy, founded by Argentine entrepreneurs, will lead the energy and infrastructure aspects of the project, ensuring the data centre ecosystem is powered by secure, efficient, and sustainable sources. Emiliano Kargieman, a Sur Energy partner, called the project a “historic opportunity for the country,” saying it combines Argentina’s renewable energy potential with critical AI infrastructure development.
Kargieman said the alliance positions Argentina as a key player in the new digital and energy landscape, creating high-quality jobs, attracting international investment, and demonstrating that innovation and energy can be complementary drivers of sustainable development.
The partnership will also extend access to OpenAI technology across Argentina through the “OpenAI for Countries” initiative, beginning with government agencies to help public employees, administrators, and research institutions use AI to streamline work, reduce costs, and improve public services.
OpenAI has previously said its Stargate initiative involves an estimated US$500 billion in global investments for a worldwide network of next-generation data centres. In May 2025, Altman discussed OpenAI’s plans to partner with national governments to enhance data centre capacity and customize the firm’s products for specific languages and local needs.
Fidji Simo, OpenAI’s number two, rejected the idea that such spending on AI infrastructure could be a bubble, calling it “the new reality” needed to meet increasing user demand. She said, “This is a massive investment in computing power at a time when we are desperately short of it for many of the applications people want,” and added, “I think the world is really going to change and realise that computing power is the most strategic resource.”