Argentina aims to become a global hub for unregulated AI development

Recent visitor logs reveal meetings between Milei and his advisors and representatives from major tech firms including OpenAI, Amazon, Google, Oracle, and data center companies, alongside venture capitalist Peter Thiel. Crusoe, a data center developer involved in OpenAI’s Texas campus, has reportedly sought discussions with Argentine energy officials regarding U.S. government-backed investments.

The nation’s Patagonia region is central to this strategy. Its vast, sparsely populated plains, cool climate, abundant wind resources, and significant shale deposits in Vaca Muerta provide ideal conditions for data center operations. Marta Zlotkowska, head of international development at Green Capital, stated, “We compared potential locations for the project around the world and Argentina — well, Patagonia — came out on top in every category.”

Green Capital plans to build a $3 billion data center in Patagonia, leasing it to tech firms for AI computing. The energy sector, already experiencing growth due to rising oil prices, anticipates a new market opportunity. Pampa Energía intends to supply substantial gas-fired power to a data center near Vaca Muerta. Rubén Etcheverry, a Neuquén province official, noted, “Being at the end of the world used to be a disadvantage, but today, faced with energy shortages and rising costs, investors are looking at us.”

To incentivize investment, Milei has proposed a corporate income tax reduction from 25% to 15% for projects exceeding $1 billion in AI and related industries. However, critics express concern that this approach lacks safeguards against potential risks like mass surveillance and cyberattacks. Nicolás Wolovick, a computer science professor, warned, “Without rules, Argentina will become a laboratory…like when companies go to developing countries to test strange drugs they can’t test in major developed countries.”

Despite Milei’s ambitious plans, Argentina faces competition from neighboring countries also vying to become regional data center hubs. Pope Leo XIV is scheduled to visit Argentina next week, potentially raising concerns about the ethical implications of unregulated AI deployment. Andrés Arbeletche, cabinet coordination secretary for Chubut province, acknowledged that investors are awaiting clarification on regulations regarding AI training and data transfers.

In Chubut province, sheep farmers are exploring leasing their land for data center development, hoping to diversify income streams as the wool industry declines. Green Capital’s planned campus, if fully operational, would consume approximately 2.7 times the electricity used by Buenos Aires in 2025, generated primarily through wind, solar, and gas power.