The Argentine government announced on Friday that U.S. artificial intelligence company OpenAI has signed a letter of intent to collaborate with Argentine-U.S.-owned company Sur Energy on the construction of a large-scale data center in the Argentine Patagonia.

A presidential press release described the initiative as a “pioneering artificial intelligence infrastructure project” aimed at placing Argentina “at the forefront of the global artificial intelligence ecosystem.” 

The project is expected to be capable of “hosting the next generation of AI computing” and reach a capacity of up to 500 MW using renewable energy. On Friday morning, President Javier Milei and Argentine Nuclear Board president Demian Reidel met with OpenAI representatives to announce the launch of Stargate Argentina, an initiative they say is set to bring in investments of up to US$25 billion for the country.

The deal will be structured within the framework of investment program RIGI. The program provides tax breaks, currency exchange perks, and other incentives to groups willing to make investments in foreign currency exceeding US$200 million.

The government is betting that OpenAI’s presence in the country positions Argentina as a hub for technological innovation in Latin America and a base for the development of new AI applications and training of local professionals in high-demand areas.

In a video presentation confirming the news, OpenAI CEO Sam Altman called the project a “milestone [that] is more than just infrastructure.”

“It’s about putting artificial intelligence in the hands of people across Argentina. We are excited to work with Argentina as it moves toward becoming an AI hub for all of Latin America,” he added.

According to Argentine media outlets, Sur Energy is part of investment group Sur Ventures. It was formerly led by Argentine entrepreneur Matías “Mat” Travizano, who died in a hiking accident in the U.S. in September. According to its mission statement, it aims to “empower the future of artificial intelligence by delivering competitive power solutions to AI data centers worldwide.”

According to a statement put out by Travizano’s former associate Emiliano Kargieman, the Stargate Argentina project represents a “historic opportunity” for the country, placing it as a “key player in the new global digital and energy landscape.”

Milei first met Altman in the midst of a five-day trip to San Francisco in May. During his stay, the Argentine president also had meetings with Google and Apple CEOs Sundar Pichai and Tim Cook while also delivering a speech that sparked controversy at Stanford University. The president later posted a picture of Altman and himself on X, saying that they talked about the “enormous possibilities a libertarian Argentina offers.”