Artificial intelligence giant OpenAI and energy company Sur Energy have signed a letter of intent to develop a data centre hub in Argentina requiring investment of up to $25bn, in what would be one of the largest technology infrastructure projects in the country's history.

"We are proud to announce plans to launch Stargate Argentina, an exciting new infrastructure project in partnership with one of the country's leading energy companies, Sur Energy," OpenAI CEO Sam Altman stated, calling it “one of the largest energy technology and infrastructure initiatives in Argentina's history.”

The Stargate Argentina initiative will establish a large-scale facility capable of hosting next-generation AI computing with energy capacity reaching 500 MW. This represents the first Stargate project in Latin America, positioning Argentina at the forefront of the global artificial intelligence ecosystem, El Cronista noted.

The Office of Argentine President Javier Milei confirmed in an X post that the project will be focused on meeting AI computing needs and will carry a 500 MW energy capacity.

Sur Energy, founded by Argentine entrepreneurs Matías Travizano and Emiliano Kargieman alongside Stan Chudnovsky, will serve as the energy and infrastructure integrator, ensuring the data centre operates on secure, efficient, and sustainable power sources. The investment will be executed through a joint venture between Sur Energy and OpenAI.

The project is structured under Argentina's Incentive Regime for Large Investments (RIGI) framework, the libertarian government's scheme designed to attract large-scale investments. As of September, RIGI had secured 20 international project submissions worth a combined $33.6bn.

This landmark agreement represents a major validation of President Milei's investment-friendly policies and could establish Argentina as a regional technology hub. However, the project's success will depend on Argentina's ability to provide stable energy infrastructure and ensure that the substantial power requirements can be met sustainably.