"Stargate" enters South America: OpenAI to build data center with up to 500 MW capacity
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OpenAI’s global data center expansion plan has made another breakthrough.
The Argentine government issued a statement on Friday the 10th local time, announcing that OpenAI has signed a letter of intent with Argentine company Sur Energy to build a large data center in the country with a capacity of up to 500 megawatts (MW) and a maximum investment of $25 billion.
The project is named “Stargate Argentina,” marking the first entry of the “Stargate” artificial intelligence (AI) infrastructure initiative into the South American market. This collaboration will proceed under the framework of Argentina’s RIGI tax incentive policy for investment, which took effect last year.
The government statement pointed out that if the project is ultimately implemented, it will become “one of the largest technology and energy infrastructure initiatives in Argentina’s history” and will be of great significance to the development of the country’s technological infrastructure. This move further confirms OpenAI’s strategic intent to accelerate the global deployment of AI infrastructure and expand the reach of its AI services to a wider range of regions.
The “Stargate” project was officially announced in January this year, when Trump announced in the White House that OpenAI, Oracle, and SoftBank would jointly establish the project, with a planned $500 billion investment in AI infrastructure. SoftBank CEO Masayoshi Son would serve as chairman and take on financial responsibility, while OpenAI would be responsible for operations.
Four months later, OpenAI confirmed its intention for overseas “Stargate” expansion, announcing in May that it would expand the project through overseas investment to promote the development of “democratic AI.”
Also in May, OpenAI announced it would build the world’s largest AI data center in Abu Dhabi, UAE, with a total capacity of 5GW, covering about 10 square miles and consuming as much power as five nuclear power plants. At the time, media reported that OpenAI was expanding its horizons to the Asia-Pacific region, with plans to negotiate AI collaborations in Japan, South Korea, Singapore, and other locations.
At the end of July, OpenAI announced the launch of the Norway “Stargate” project, Stargate Norway, marking its first entry into the European market. The data center will have a capacity of 230 MW and aims to deploy 100,000 Nvidia GPUs by the end of 2026.
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