Argentina emerges as potential data center hub as U.S. backlash grows

  • U.S. officials are imposing pauses, guardrails and higher costs on data center developers.
  • 1,000 to 1,500 U.S. data centers are currently being developed for hyperscalers and neo-clouds.
  • OpenAI plans a clean-energy-powered Argentine facility costing up to $25 billion.

Political resistance to U.S. data center construction is intensifying as elected officials impose moratoriums, tighten permitting and require developers to cover power, water and infrastructure costs. The shift follows public concerns about grid reliability, utility bills, water use and local control, even as some officials maintain that their positions have not changed. Dan Ives, a Yorkville Ives partner, estimates that 1,000 to 1,500 U.S. data centers are in motion to serve hyperscalers and neo-clouds, with 10% to 15% potentially cut. Argentina is emerging as a possible destination for some large-scale AI infrastructure, with investors assessing Patagonia’s climate, renewable energy, shale gas reserves and undeveloped land. OpenAI plans to partner with Sur Energy on a clean-energy-powered facility costing up to $25 billion and capable of 500 MW, while other proposals are under review in Neuquen and Chubut.

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Argentina emerges as potential data center hub as U.S. backlash grows - CoinPost Terminal