Australia could be on the verge of a multibillion-dollar data center expansion as major US technology companies show significantly greater appetite for building facilities in the country. At the AFR Commercial Property Summit, Aware Super CEO Deanne Stewart said Australia could unlock major investment if it addresses bottlenecks around grid connections, zoning approvals, construction costs and suitable sites.
AirTrunk said Google, Apple, Meta, Amazon and Microsoft have become far more interested in Australian projects. Westpac IQ estimated investment in Australia’s data centers could surpass $155 billion, delivering a GDP boost of about $75 billion and supporting up to 400,000 jobs. Stewart noted global data center capital allocations already total $750 billion and could exceed $1 trillion next year.
However, AI data centers are on track to consume 13% of Australia’s total power by 2035-36, up from 3% today, and the Australian Energy Market Operator warns that demand could outpace new grid construction. In New South Wales and Tasmania, community opposition is rising, while Equinix's Tim Robinson said land costs are pushing projects further from city fringes.
In Argentina's Patagonia, developers are studying Neuquén and Chubut for large AI data centers that could use cold climate, hydroelectric power, wind, solar and Vaca Muerta gas. Pampa Energía is working on a project at Loma de la Lata that could deliver about 500 MW, with a 20–40 MW pilot plant considered first. FlexDomes is seeking investors for a $1.4 billion project starting at 120 MW, while Green Capital is planning a Chubut facility that could grow from 300 MW to 3,000 MW.
Argentina’s RIGI framework and Decree 105/2026, which extends the enrollment window and includes AI activities, are key policy supports. The most prominent proposal is Stargate Argentina, where OpenAI and Sur Energy signed a letter of intent in October 2025 for a 500 MW installation at an estimated $25 billion investment. OpenAI CEO Sam Altman said the effort could help Argentina become an AI hub for Latin America.
