Patagonia is being pitched by Argentina's national government and allied tech players as an attractive location for data centers and AI infrastructure. The push centers on abundant water, a cool climate and favorable national policy under President Javier Milei, who has campaigned to make Argentina hospitable to Silicon Valley firms by offering tax breaks and minimal regulation.
Partner: Sur Energy and Emiliano Kargieman
OpenAI announced a local component to its Stargate project called Stargate Argentina. The publicly prominent partner for that project is Sur Energy, presented by OpenAI leadership as a major Argentine energy company. Sur Energy's visible leader is Emiliano Kargieman, a figure better known for earlier ventures than for traditional energy assets. The article notes Sur Energy appears to lack a broad local footprint beyond letters of intent.
Beyond scenic value, Patagonia offers practical attributes: a cool climate that reduces cooling needs for servers and apparent access to water — factors that data-center developers value. The local rollout of data centers echoes wider controversies about their impacts: heavy consumption of electricity and water, pressure on local utility prices, and promises of jobs that often underdeliver or dissipate after construction.
President Milei has actively courted Silicon Valley, including writing an editorial that invited AI companies to expand in Argentina and suggesting permissive rules for AI-run businesses with minimal human oversight. Advisers in Milei's circle have argued that human settlements in some parts of Patagonia could obstruct the build-out of AI infrastructure. The government has pursued tax incentives and regulatory light-touch policies to accelerate foreign tech investment.
Surveillance, Satellogic, and the Wider AI Ecosystem
Stargate Argentina: What is being built
Stargate Argentina is described as the international extension of OpenAI's 2025 Stargate initiative to build AI infrastructure. The project was enabled by Milei and top officials and shaped publicly with OpenAI's involvement. The article calls attention to the obscurity of Sur Energy and links the effort to broader trends: privatized construction of AI infrastructure, cross-border capital flows, and a relatively small set of actors shaping decisions with local consequences.
Implications for Patagonia and Argentina