President Javier Milei is attempting to attract artificial intelligence data centre investment to the Patagonia region by promising minimal regulation and significant tax incentives. The government's proposal includes slashing the corporate income tax rate from 25% to 15% for large-scale projects in emerging industries valued at at least $1 billion, though the measure currently awaits Senate approval.
Patagonia offers several practical advantages for large-scale computing facilities, including vast amounts of available land, cool temperatures, strong winds, and natural gas from the Vaca Muerta shale formation. The Polish renewable energy company Green Capital has already identified the region as a top global candidate for a planned $3 billion data centre, which would be leased to major technology firms for AI computing. The company has leased 130,000 hectares of land, some of which is owned by the Milei family, for the project, which is not expected to begin construction until approximately 2028.
While the administration positions the lack of oversight as a competitive advantage, critics argue the move lacks necessary safeguards. Nicolás Wolovick, a computer science professor at the National University of Córdoba, warned that the absence of rules could turn the country into a testing ground for technologies that are restricted in developed nations.
