OpenAI’s proposed data centre in Argentina has yet to progress beyond a letter of intent with local partner Sur Energy, a year after the project was announced. The reported standstill matters because the project was pitched at up to $25bn and 500 megawatts, but has no definitive contract to start construction.
OpenAI Watch analysis
What happened
IntelliNews reports, citing Bloomberg Línea, that Stargate Argentina remains at the preliminary stage and has not applied to join Argentina’s Large Investment Incentive Regime. The project’s proposed site is in Neuquén province. Sur Energy co-founder Emiliano Kargieman said in August that negotiations were continuing, but that a definitive agreement with OpenAI had not been signed.
The report also says Sur Energy has agreements for energy supply with Central Puerto and Genneia, and an agreement with computing infrastructure company Fluidstack. OpenAI has described itself as a potential buyer of computing capacity, with any purchase dependent on the energy and infrastructure development led by Sur Energy. The proposed investment figure needs a little unpacking: Kargieman estimated about $18bn would go towards Nvidia chips, which he described as equipment that would be brought in and then leave Argentina.
Why it matters
This is a useful reality check on the gap between announcing an AI infrastructure project and building one. The reported site selection and energy agreements are concrete steps, but they do not replace the missing definitive contract or settle when construction might begin. Argentina is trying to attract AI infrastructure investment; whether this proposal advances will matter more than the eye-catching headline figure.
Our read
The project is not reported as cancelled, and negotiations were said to be continuing in August. But after a year, “up to $25bn” is still a proposal, not money committed to a construction schedule. The interesting question is whether the next milestone is a signed deal, an incentive application, or another round of optimism with the same paperwork.
What to watch
- Whether OpenAI and Sur Energy sign a definitive contract.
- Whether the project applies to Argentina’s investment incentive regime.
- Whether the reported energy and infrastructure agreements translate into a construction timetable.
Discussion spark: Should governments offer major incentives to attract proposed AI data centres before developers have signed definitive contracts, or should public support wait for firmer commitments?
Sources and evidence
- OpenAI's $25bn Argentina data centre still stuck at letter of intent a year on – IntelliNews (27 October 2026, 20:39 UTC)
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