In a major step toward sustainable artificial intelligence infrastructure, Central Puerto S.A. (CEPU), one of Argentina’s leading energy producers, has signed a Memorandum of Understanding (MoU) to help power a massive Open AI backed data center in Patagonia. The agreement marks a defining moment for Argentina’s growing role in the global AI and renewable energy landscape.
The project, known as “Stargate Argentina,” represents one of the largest technology investments ever proposed in the country, with an estimated cost of up to 25 billion US dollars. This state of the art facility aims to provide 500 megawatts of energy capacity, supporting high performance computing needs for artificial intelligence systems developed by Open AI and its partners.
Under the MoU, CEPU will explore supplying clean and renewable energy particularly from hydroelectric sources to meet the massive power demands of the data center. The collaboration highlights Argentina’s potential to combine abundant renewable resources with advanced digital infrastructure, making it a key player in the global AI supply chain.
The project is being developed in partnership with Sur Energy, a major infrastructure developer, and will operate under Argentina’s Régimen de Incentivos para Grandes Inversiones (RIGI) program. This government incentive framework provides tax and customs benefits for large scale projects, helping attract international investors and technology companies seeking stable long term returns.
For Argentina, the Stargate initiative is more than a single infrastructure project it symbolizes a national transformation toward a tech-driven and energy independent future. The Patagonia region, rich in natural resources and renewable potential, offers ideal conditions for establishing large data centers powered by clean energy. The collaboration between CEPU, Sur Energy, and Open AI is expected to generate thousands of jobs during construction and operation, while stimulating innovation in the local energy and technology sectors.
From OpenAI’s perspective, this project aligns with its goal of developing sustainable AI infrastructure capable of supporting next generation models and global data processing demands. Artificial intelligence training and inference require enormous computing power, and establishing data centers with renewable energy sources is a vital step toward reducing environmental impact.
Moreover, the CEPU OpenAI partnership showcases how emerging economies can play a strategic role in the future of AI. With government support, renewable energy availability, and growing digital capabilities, Argentina is positioning itself as a regional hub for artificial intelligence, data services, and clean power innovation.
Although specific timelines and financing details have not yet been confirmed, the signing of the MoU indicates strong commitment among all parties involved. Once completed, the Stargate Argentina project could become a benchmark for sustainable, large scale AI infrastructure blending advanced computing, environmental responsibility, and national development.
In summary, CEPU’s agreement to help power the Open AI backed data center is a turning point for Argentina’s energy and technology sectors. It represents the convergence of AI progress, renewable power, and visionary investment, setting the stage for a future where innovation and sustainability move forward hand in hand.
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