Patagonia emerges as AI data centers chase power and land

Given that established data center locations are becoming limited in terms of energy and land availability, Argentina’s Patagonia is now looking more strategic than distant. As noted in Reuters’ investigation on September 7, developers are considering Neuquén and Chubut for large data centers that can use cold climate, hydroelectric power, and wind along with solar and Vaca Muerta gas.

The critical issue now is whether AI computations will prefer to move to regions with an abundance of energy rather than remain concentrated in established emporiums. If Patagonia can convert proposals to functioning assets, there is a chance that Argentina will be able to take advantage of a boom in infrastructure that is increasingly being affected by the availability of electricity and geography.

Why the map is being redrawn

The effect of this pressure on well-established markets is becoming evident. According to CBRE’s Global Data Center Trends 2026, vacancy in Northern Virginia has reached only 0.3%, with the company predicting that availability of power, grid restrictions, and local resistance to construction will change the selection of new sites in major hubs across North America and Europe.

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