Milei courts data centers with hands-off AI policy

Argentine President Javier Milei is pitching Patagonia as a haven for AI infrastructure, promising to avoid regulation while courting foreign technology companies. The region offers open land, cool weather, strong winds and shale gas resources. Visitor logs show meetings with figures including Peter Thiel and representatives of OpenAI, Amazon, Google and Oracle.

Milei is also seeking Senate approval for incentives that would cut the corporate income tax rate to 15% from 25% for projects of at least $1 billion in AI and other emerging industries. Green Capital plans a $3 billion data center in Patagonia, although it has not secured a customer. Construction is not expected to begin until around 2028. The company says it would generate its own electricity using wind, solar and gas rather than burden Argentina’s congested grid.

Major uncertainties remain. Environmental studies and permits are pending, and Green Capital has not specified water requirements or the share of power supplied by gas. Critics question the local benefits, citing limited employment and no requirement to reserve computing capacity for Argentina. Companies also want clarity on copyright and cross-border personal data rules, while some investors fear a future government could reverse Milei’s reforms. Local opposition is growing alongside concerns about resource use and deploying AI without safeguards against surveillance and cyberattacks.