Argentina, with its vast territorial extension and natural resources, seems at first glance an attractive place to host large data centers. artificial intelligence (AI)However, a detailed analysis of the costs, implementation times, and political and economic stability reveals a more complex reality that puts the country at a disadvantage compared to other international candidates.
The infrastructure needed to support large-scale data centers, such as those required by technology giants like Facebook, Google, OpenAI and Microsoft, involves significant investments in electricity generation, transmission and distribution.
Given that the demand for these servers is constant, viable energy generation options in Argentina are limited to natural gas or nuclear plants, due to the unreliability of renewable energy.
Building a natural gas plant in Argentina, with adequate capacity to power a data center, would cost an estimated $600 million to $1.2 billion, with a deployment time of 3 to 5 years. Alternatively, a nuclear plant, which would offer an even more reliable supply, would cost between $6 billion and $9 billion, with a construction time of 6 to 10 years.
In addition, an additional investment of between $180 million and $380 million is required in electricity transmission and distribution, and between $82 million and $144 million in data center-specific infrastructure.
Comparatively, in Nordic countries such as Sweden, Norway and Denmark, the existing renewable energy infrastructure and political and economic stability allow for the deployment of data centres at a significantly lower cost and in a much shorter timeframe of 1-3 years. Ireland, on the other hand, offers favourable tax policies and an advanced technological infrastructure, with deployment times of 2-4 years.
In addition to economic challenges, Argentina faces serious problems of political stability. The lack of a presidential majority in Congress and economic volatility are factors that increase the risk for long-term investments. Although Argentina is strategically aligned with the United States, which is beneficial for the development of advanced technologies such as artificial intelligence, this advantage is countered by regional instability and constant fluctuations in the political and economic environment.
On the other hand, Argentina’s dependence on energy imports and the need for additional infrastructure to ensure a continuous energy supply represent significant obstacles. In times of high demand, the country has had to resort to importing electricity from neighboring countries, which is not a viable solution for the constant needs of a large-scale data center.
In conclusion, although Although Argentina has certain advantages, such as relatively low energy costs and a qualified and inexpensive workforce, these factors do not compensate for the high initial costs, long implementation times and lack of political and economic stability. The complexity of the regulatory environment and the need for significant investments in electrical and telecommunications infrastructure make Argentina an unattractive option for hosting large AI servers.
Compared to other countries such as the Nordic countries and Ireland, with more stable and favourable environments for investment in technology, Argentina has little chance of being chosen as a location for these servers.
Things as they are.
Philosopher and international analyst
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
