Argentina's US$46 Billion Data Center Pipeline

---

Written by Amir Richani for IIR News Intelligence (Sugar Land, Texas)

---

Summary

Argentina has a data center pipeline of 15 projects worth US$46.40 billion. Its abundant natural resources are also attracting growing interest from companies like OpenAI to develop their data centers in the country.

---

A Growing Sector

Data centers are a hot topic internationally. Argentina is quietly attracting growing interest from the data center sector thanks to its vast natural resources, including natural gas, wind and solar. A recent article from Reuters highlighted that tech companies were eyeing Argentina's Patagonia as a prospective area for data center development.

To put things in context, Industrial Info Resources is tracking 15 data center projects across Argentina representing US$46.40 billion in investment. These 15 projects span several Argentine provinces such as Neuquen, home of the Vaca Muerta shale play, as well as Chubut, Tierra del Fuego, and Rio Negro, in Patagonia.

According to Industrial Info Resources data, the biggest data center projects in Argentina include OpenAI's US$25 billion Stargate Data Center and Green Capital Renewable Energy's Atlas Gigahub data center in Trelew, Chubut, whose three phases represent US$21 billion in combined investment.

From the 15 projects, 12 have already announced their capacity, combining a total of 3,533 megawatts (MW) of data center capacity. Atlas Gigahub in Trelew represents the largest undertaking with a combined capacity of 3,000 MW across its three phases.

At the same time, Argentina already has 10 active data center facilities in Buenos Aires, with companies like Next Stream and EdgeConneX Incorporated already operating these assets, according to the Industrial Info Resources PECWeb Global Market Intelligence (GMI) Platform.

However, developing the pipeline of data center projects will require access to abundant energy and this could drive the development of new electric generation and transmission infrastructure. In this context, the combined 3,533 MW of planned capacity across the 12 projects mapped by Industrial Info Resources is equivalent to about 12% of Argentina's all-time peak electricity demand of 30,257 MW, as shown by the Argentine Wholesale Electricity Market Clearing Company (CAMMESA).

While some of these developers may consider connecting to the national grid, others could consider dedicated electricity capacity for their data centers. For example, the Trelew project would be powered by its own solar and wind power plants.

The scale of Argentina's data center and computing energy demand could further create opportunities for renewable energy power projects, natural gas power plants, distribution, transmission, and substations. Such investments could seek benefits as part of Argentina's Incentive Regime for Large Investments (RIGI), which grants tax, customs, foreign exchange, and regulatory incentives for companies developing projects of at least US$200 million.

Key Takeaways

• Argentina has 15 data center projects worth U$46.40 billion.
• Twelve of those projects have a combined capacity of 3,533 MW, 12% of the country's all-time peak power demand.
• Data centers could seek to develop their own electric capacity or rely on the grid.

---

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).