Patagonia May Become New Mecca for Data Centers

Argentina's windswept south is suddenly on Big Tech's map. Reuters reports that Patagonia, long known for glaciers and shale gas, is now drawing interest as a potential hub for massive data centers, thanks to its cold climate, abundant energy, and wide-open land—plus a notable absence of local opposition so far. One example: OpenAI is teaming up with a local energy company on plans to build a $25 billion facility. The push comes as President Javier Milei courts foreign investment with tax incentives and closer ties to Washington, and as tech "hyperscalers" struggle with backlash and power constraints in more established markets.

But the Patagonia plans face big hurdles: limited infrastructure, connectivity gaps, and political uncertainty around Argentina's 2027 election. "They would feel more comfortable if Milei was reelected," says an exec for a firm trying to line up company tours in the region. Several projects—from a Polish-backed data center in Chubut to other pilots in Bahia Blanca—are still hunting for investors and regulatory clarity. Read the full story.