OpenAI and Sur Energy are considering a $25 billion data center development in Argentina.

Argentina Data Center Project

OpenAI and Sur Energy are considering a $25 billion data center project in Argentina, marking a significant development for Latin America’s technology sector. The project, officially named Stargate Argentina, aims to provide up to 500 megawatts of power for advanced AI computing. This initiative represents one of the largest technology and energy infrastructure projects in Argentina’s history.

Strategic Expansion for OpenAI

The data center aligns with OpenAI's growth strategy, driven by the rapid expansion of its AI services, including ChatGPT and Sora. With 800 million weekly ChatGPT users and Sora experiencing substantial growth, OpenAI requires expanded infrastructure. The project addresses the high energy consumption associated with training and operating its advanced AI models.

Economic and Regional Impact

The Argentina project leverages the country's RIGI tax break initiative to attract foreign investment. Successful implementation would stimulate Argentina’s economy and establish the country as a central hub for AI development in Latin America. OpenAI’s CEO emphasizes the region’s talent and ambition.

Recent Developments and Partnerships

This announcement follows OpenAI’s recent developer conference, which showcased new partnerships with brands like Spotify and Mattel. Sora, OpenAI’s video generation tool, has witnessed extraordinary demand, surpassing initial downloads of ChatGPT. The data center project is a crucial step in OpenAI’s continued global expansion.