Argentina's President Milei proposes regulation-free AI haven in Patagonia

Argentine President Javier Milei is pitching Argentina as a haven for artificial intelligence (AI) data centers, promising a hands-off approach to attract foreign investment. As residents and policymakers in the United States and Europe push back against the facilities that power AI, Milei is offering a regulatory-free environment.

Proposed Incentives and Geography

To attract investment despite chronic economic instability, Milei is pushing an incentive scheme that would slash the corporate income tax rate to 15% from 25% for projects of at least $1 billion in AI and other emerging industries. This measure is currently awaiting Senate approval.

Patagonia has been identified as a primary location for these facilities due to several geographic factors:

• Vast, open plains for construction far from population centers.
• A chilly climate to assist in cooling machines.
• Powerful winds for electricity generation.
• Access to the Vaca Muerta shale deposits to fuel power plants.

Green Capital, a Polish renewable energy company, plans to build a $3 billion data center in Patagonia to lease to big tech firms for AI computing. Marta Zlotkowska, head of international development at Green Capital, stated, "We compared potential locations for the project around the world and Argentina — well, Patagonia — came out on top in every category."

Industry and Local Impact

Data centers represent a potential new market for Argentina's energy industry. Pampa Energía, one of the country's largest power companies, has announced plans to supply gas-fired power to a data center near Vaca Muerta and is seeking developers.

In the Chubut province, some ranchers are looking to lease land for server racks. Francisco Sáenz, an agricultural engineer and sheep farmer, noted that his family is among 14 landowners who have leased a combined 130,000 hectares (about 321,000 acres) to Green Capital.

However, the economic payoff for the country remains a subject of debate. Critics note that data centers employ relatively few people and Milei’s proposed incentives do not require companies to reserve computing capacity for local use or disclose energy and water usage. Alan Rocha Varsanyi, a researcher at Observatorio Petrolero Sur, said, "The computing capacity will be exported wherever OpenAI or the other companies need it."

Regulatory and Environmental Concerns

Critics warn that deploying AI without safeguards could lead to risks such as mass surveillance or cyberattacks. Nicolás Wolovick, a computer science professor at the National University of Córdoba, said, "Without rules, Argentina will become a laboratory — like when companies go to developing countries to test strange drugs they can’t test in major developed countries."

In the city of Trelew, residents have expressed concern regarding the environmental impact. Cristina Gibón, 46, expressed fear over resource availability, stating, "Maybe we’ll have water until we’re old. But afterward, our children will still be here, and they won’t have those resources."

Construction for the Green Capital project is not expected to begin until around 2028. If operated at projected peak demand, the campus would use approximately 2.7 times as much electricity in a year as the entire city of Buenos Aires consumed in 2025, according to an AP calculation.

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Sources

• apnews.com: Argentina's Milei pitches Patagonia as AI data center haven as backlash grows in US and Europe | AP News
• twaslnews1.twaslnews.com: Argentina’s Milei Pitches a Regulation-Free AI Haven at the End of the World
• bozemandailychronicle.com: Argentina’s Milei pitches a regulation-free AI haven at the end of the world

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.