Big Tech Explores Argentina for Data Centers Amid US Pushback
Major U.S. tech companies like Meta and Alphabet are shifting focus toward Argentina as local opposition grows against new data center projects in the United States. Community backlash over energy consumption, environmental impact, and rising utility costs has led to delays or cancellations of several large-scale initiatives. Analyst Dan Ives estimates that 10%–15% of U.S.-planned data centers may not proceed due to political resistance. Argentina's Patagonia region is emerging as a viable alternative for hyperscalers, offering cool climates and renewable energy resources. The country’s improved economic outlook under President Javier Milei has spurred interest in the RIGI incentive regime, which offers tax benefits. OpenAI plans a $25 billion clean-energy-powered data center with Sur Energy, while Pampa Energia is exploring projects near its power plants. Investors are also eyeing Argentina's vast undeveloped land and shale gas reserves for future expansion. Several large-scale proposals, including FlexDomes' 120-MW facility in Neuquen and Green Capital’s $3 billion project in Chubut, highlight the growing interest.
Topics: Alphabet Inc. Argentina community backlash data centers Meta Platforms Inc. U.S. data center projects