Argentina’s President Javier Milei is trying to attract data centers that power artificial intelligence. He is promising companies that his government will not regulate AI.
The pitch comes as residents and officials in the United States and Europe push back against the large facilities. Milei hopes foreign investment will help his country’s struggling economy.
“We are not going to regulate artificial intelligence,” Milei told the U.S. Chamber of Commerce in Washington last month. “We are going to leave it free.”
Visitor logs obtained by The Associated Press show many tech figures have met with Milei and his aides in recent months. They include venture capitalist Peter Thiel and representatives of OpenAI, Amazon, Google and Oracle.
Foreign Ministry records show that data center developer Crusoe sought talks this year with Argentine energy officials. Crusoe helped build OpenAI’s main campus in Texas.
Why Patagonia Draws Interest
Milei’s plan relies heavily on the Patagonia region. It offers open land far from cities, a cold climate to cool servers, strong winds for power and the Vaca Muerta shale deposit for gas.
Polish renewable energy company Green Capital plans to build a $3 billion data center in Patagonia. It would lease computing space to big tech firms but has not yet signed a customer.
Power company Pampa Energía has announced plans to supply gas-fired electricity to a data center near Vaca Muerta. The company is seeking developers for the project.
To attract investors, Milei wants to cut the corporate income tax rate to 15% from 25% for AI projects of at least $1 billion. The measure is waiting for Senate approval.
The proposal does not require companies to set aside computing power for local use. It also does not require them to disclose their energy and water use.
Questions Over Rules and Resources
Argentina still trails its neighbors in the race to become a regional data center hub. A senior official said companies are waiting for clear rules on training AI with copyrighted works and sending personal data abroad.
Some investors are also waiting for next year’s presidential election. They worry a new government could reverse Milei’s free-market reforms.
In Chubut province, 14 landowners have leased about 130,000 hectares (about 321,000 acres) to Green Capital. Ranchers plan to keep raising sheep on the land as the wool industry declines.
Construction is not expected to begin until around 2028. At peak demand, the campus would use about 2.7 times the electricity that Buenos Aires used in 2025, according to an AP calculation.
Green Capital says it will produce its own power from wind, solar and gas. Environmental studies are still underway, permits are pending, and the company has not said how much water the site would need.
Some residents of nearby Trelew have formed a group called “Trelew Free of Data Centers.” In Congress, the opposition forced Milei to scale back a bill on foreign land ownership and stalled his plan to let AI agents run companies.
Pope Leo XIV, who has warned about the risks of AI, is set to visit Argentina next week as part of his Latin American tour.
