OpenAI's ambitious expansion into South America has materialized with the announcement of a $25 billion data center project in Argentina's Patagonia region. The facility will feature 500 megawatts of capacity, making it one of the most significant energy infrastructure developments in the country's history.

The project, dubbed Stargate Argentina, involves a partnership between OpenAI, Sur Energy, and an unnamed cloud infrastructure company. OpenAI will serve as the primary customer for computing power, while Sur Energy leads the development effort. The initiative falls under President Javier Milei's Incentive Regime for Large Investments program, designed to attract foreign capital to Argentina.

For energy market analysts, this development underscores the massive power requirements driving AI infrastructure expansion globally. The 500-megawatt capacity rivals that of traditional industrial facilities and represents a new category of energy-intensive technology infrastructure. The project's scale suggests that AI companies are increasingly willing to locate facilities in regions offering favorable energy economics and regulatory frameworks.

The timing coincides with OpenAI's broader $1 trillion worth of computing deals announced in 2025, indicating sustained demand for data center capacity. Energy traders should monitor similar announcements as AI companies seek locations with reliable, cost-effective power infrastructure to support their expanding operations.