Patagonia in Argentina attracts investors in large data centers — Cyprus Mail
Argentine Patagonia is drawing the attention of investors considering the region for the construction of large data centers. Potential developers are attracted by the cool climate, access to renewable energy and shale gas, as well as vast undeveloped areas, Cyprus Mail reports.
Projects in Neuquén and Chubut
Energy company Pampa Energia is exploring the possibility of locating a data center near its Loma de la Lata thermal power plant in the Patagonian province of Neuquén. According to the company’s commercial director for power generation, Ruben Turienzo, the facility could consume up to 500 MW of energy thanks to the resources of Vaca Muerta, one of the world’s largest shale gas formations.
Pampa Energia expects to reach initial agreements with potential clients by the end of 2026. According to Turienzo, investors are initially considering pilot facilities with capacities of 20 to 40 MW before expanding them. He estimated the cost of electrical infrastructure for a 500 MW data center at nearly $900 million.
US company FlexDomes is also seeking investors for a project in Neuquén. Its first phase envisages 120 MW of IT load and will require $1.4 billion, said the company’s representative in Argentina, Gabriel Obrador.
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In the southern province of Chubut, Polish company Green Capital said in July that it was planning a data center with an initial capacity of 300 MW and a cost of $3 billion. In the future, the facility’s capacity could grow to 3,000 MW. The company leases about 1,298 square kilometers of land south of the city of Trelew to build wind and solar power plants and seeks not to use the national power grid, but it still needs investors.
Energy and infrastructure constraints
In Buenos Aires Province, Pampa Energia agreed to supply 30 MW for the first phase of a data center in the free trade zone of the city of Bahía Blanca. Pablo Amarelle, general manager of the zone’s concessionaire, said the company had already begun building an IT park and expected final investment agreements by the end of 2026.
Last October, OpenAI announced a partnership with local company Sur Energy on a clean-energy data center costing up to $25 billion and with capacity of up to 500 MW. Sur Energy co-founder Emiliano Kargieman told Bloomberg Linea in August that the company, together with Neuquén authorities, was looking for a site, while the signing of a final contract depended on OpenAI.
At the same time, experts caution that energy resources and a cool climate do not guarantee the implementation of the announced plans. They cite infrastructure development and telecommunications connectivity among the main obstacles. Some investors are also watching Argentina’s 2027 presidential election and the proposed expansion of investment incentives.
