Potential Mega Data Centers in Patagonia Raise Environmental Concerns
Argentina's Sur Energy and OpenAI plan a data center in Neuquén, with a proposed capacity of 500 MW and $25 billion investment. The initiative could exacerbate existing water scarcity and environmental issues in Vaca Muerta, highlighting the urgent need for regulatory frameworks.
On October 10, 2025, Sur Energy and OpenAI signed an intention letter for a mega data center with a capacity of 500 MW in Neuquén, Argentina, potentially requiring a $25 billion investment. Local authorities have expressed concerns about water scarcity and environmental impacts, as data centers demand significant energy and water resources.
AI-curated by TheiaCurrently, no specific regulations exist to govern such installations, raising alarms among environmentalists. The Argentine government is leveraging the Régimen de Incentivo para Grandes Inversiones (RIGI) to attract investments, which some experts warn could undermine environmental controls. As the region continues to experience high water demand from fracking, the introduction of data centers could strain resources further, necessitating comprehensive regulatory measures.
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