OpenAI is eying a $25 billion data center project in Argentina (www.businessinsider.com)

🤖 AI Summary
OpenAI has signed an agreement with Argentine energy firm Sur Energy to underwrite computing demand for the “Stargate Argentina” project: a proposed 500‑megawatt data center in Patagonia that Argentina’s government says would require about $25 billion in investment. The facility, which will be developed by Sur Energy and an unnamed cloud‑infrastructure partner with OpenAI as the primary customer, is being pursued under President Javier Milei’s Incentive Regime for Large Investments (RIGI). Officials have not yet disclosed a construction start date or exact site, but characterize the build as one of the largest energy infrastructure initiatives in the country’s history. For the AI/ML community this would be a major expansion of hyperscale compute capacity and another sign of OpenAI’s aggressive hardware deals (the company has announced extensive partnerships with chipmakers and claimed roughly $1 trillion in computing deals in 2025). A 500 MW installation implies thousands of GPUs, huge power and cooling needs, and deep ties to local grid and generation projects—raising questions about energy sourcing, sustainability, regional supply‑chain development, and geopolitical concentration of AI compute. The deal also signals continued vertical integration: securing dedicated, large‑scale capacity to accelerate training and inference, while locking in partnerships with regional infrastructure providers and cloud operators.
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