Machine-translated from Spanish. It may contain errors.
Milei pledges not to regulate AI to lure data centers to Patagonia, but the project AP is following still has no client
AP reports tax incentives still awaiting Senate approval and a US$3 billion plan in Chubut whose construction isn't expected before 2028. There's also local opposition and investor doubts.
A report by The Associated Press shows how Argentina is trying to position itself as a destination for AI data centers. Javier Milei told the U.S. Chamber of Commerce in Washington that his country will not regulate the technology. His incentive plan would cut the corporate tax rate from 25% to 15% for AI projects and other emerging industries starting at US$1 billion, though it still needs Senate approval.
The case AP is following is Green Capital, a Polish company planning a US$3 billion campus near Trelew, in Chubut, to lease to big tech companies. It doesn't have a client yet, and construction isn't expected before 2028. According to the agency, some investors are waiting to see how next year's presidential election plays out, and Argentina is lagging behind its neighbors in this race.
There's criticism too: Trelew residents have organized over environmental and water concerns, and the incentives don't require setting aside local compute or disclosing energy and water use.
Why it matters if you build with AI: more data centers in the region don't automatically mean more compute for you. Before counting on that capacity, ask who will be able to use it, at what price, and under what rules.