OpenAI has announced plans to invest $25 billion in a massive data center project in Argentina, marking a significant expansion of its infrastructure ambitions. The initiative, named Stargate Argentina, will be developed by Sur Energy in collaboration with an unnamed cloud infrastructure company, with OpenAI as the primary customer for computing power. The facility, located in the Patagonia region, will have a capacity of 500 megawatts and is expected to become one of the largest energy and technology infrastructure projects in Argentina’s history. The project is part of Argentina’s Incentive Regime for Large Investments (RIGI), a government program designed to attract major international tech investments. President Javier Milei confirmed the deal during a meeting with OpenAI representatives and executives from Sur Energy and state-owned Nucleoeléctrica Argentina SA. His office stated the collaboration reflects OpenAI’s commitment to advancing global AI capabilities while aligning with Argentina’s goal of becoming a sustainable innovation hub. While the exact location and construction start date have not yet been disclosed, the scale of the investment underscores OpenAI’s aggressive push to secure the computing resources needed to maintain its leadership in the rapidly evolving AI landscape. This move follows a series of high-profile deals in 2025, including agreements with semiconductor giants Nvidia and Advanced Micro Devices, as well as over $1 trillion in computing contracts secured so far this year. The Stargate Argentina project is the latest sign of OpenAI’s rapid expansion as it races to outpace competitors like Google, Meta, and Anthropic. With AI models demanding ever-greater computational power, securing reliable, large-scale infrastructure has become a strategic priority. The investment also highlights the growing role of international partnerships in shaping the future of AI development, as tech leaders look beyond traditional tech hubs to regions offering favorable conditions, energy access, and government support.