Patagonia region in Argentina is becoming a target for hyperscale data center operators due to its cold climate and abundant energy resources. The environment helps maintain optimal thermals with lower power consumption for cooling. The region features tens of thousands of glaciers across the Northern and Southern Patagonian Ice Fields.
The area offers a variety of energy sources, including hydroelectric power, wind, shale gas, and solar energy. While the current political climate under President Javier Milei is accommodating to Big Tech, potential risks include the next presidential election and the interests of indigenous communities in certain areas.
OpenAI has confirmed a data center project with an investment of $25 billion and a capacity of 500 MW of clean energy. Poland's Green Capital is planning a 300 MW facility with an investment of $3 billion. Additionally, the U.S.-based company FlexDomes is planning the first stage of a 120 MW facility.
Despite these advantages, Argentina faces structural weaknesses. The country has deficiencies in connectivity and power grid infrastructure, which may increase the initial setup costs for developers who often have to address these issues on a per-project basis.
