Argentina data center power system market size was valued at USD 32.63 million in 2024 and is projected to grow to USD 41.91 million by 2028, registering a compound annual growth rate (CAGR) of 6.8 % from 2025 to 2028.
Argentina is undergoing a structural transformation of its energy infrastructure to support the growth of energy-intensive digital sectors, such as data centers.
This investment in small modular nuclear technology is part of a broader strategy to ensure long-term energy security and reduce Argentina’s dependence on shale gas for electricity generation. Nuclear energy is positioned to provide stable, complementary capacity to meet future grid demands, particularly in areas projected for new data center development.
At the same time, Patagonia is emerging as an attractive region for data center expansion due to its naturally cool climate. The cooler temperatures can significantly reduce cooling costs, which remain a major operational expense for high-density computing facilities. This aligns with government efforts to attract AI-driven and high-performance computing (HPC) facilities, positioning Argentina as a competitive player in the global digital economy.
While economic challenges remain, Argentina is actively working to diversify its energy portfolio to support the expansion of its digital infrastructure. The stability and scalability of the future power supply will be crucial for technology companies evaluating investments in Argentina’s data center industry. The government is expected to continue rolling out innovative energy development policies to fuel its digital transformation agenda, focusing on creating a diversified energy mix to meet the growing power demands of data centers. These efforts are set to drive growth across Argentina’s power systems market, further strengthening the country’s position as a digital infrastructure hub
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