• Pampa Energía is studying a data-centre project of up to 500MW beside its Loma de la Lata power plant in Neuquén
  • Interested investors favour a 20–40MW first phase, while electrical infrastructure for the full proposal is estimated at almost US$900m

The fact

Pampa Energía is studying a data-centre development of up to 500MW beside its Loma de la Lata thermal power plant in Argentina's Neuquén province, Reuters reported. The company began examining the proposal after receiving enquiries earlier in 2026 and is now discussing electricity prices with interested parties. It aims to reach initial agreements by the end of the year.

According to Pampa electricity commercial director Rubén Turienzo, prospective investors want to begin with a smaller 20–40MW project before considering further expansion. He estimated that electrical infrastructure for a full 500MW development would cost almost US$900m. That figure covers electrical works, not the total cost of a completed data centre.

Pampa owns the neighbouring power plant and has gas operations in Vaca Muerta. The company has not announced a customer, final investment decision, construction timetable or power capacity reserved for the proposed data centre.

The assessment

Starting with 20–40MW would let Pampa and an investor test the site before committing to a much larger development. They could establish whether customers will take the capacity and whether power can be delivered at an acceptable cost before financing infrastructure for hundreds of additional megawatts.

The important question is how much electrical work the first phase needs. If substations, transmission connections or other shared equipment must be sized for future expansion from the beginning, the pilot could still require substantial upfront spending. Building only for 20–40MW could reduce that initial commitment but may require additional work when the site expands. Reuters does not say which approach Pampa intends to use.

For BTW readers, the first commercial agreement needs to show more than the pilot's megawatt figure. The power arrangement, initial electrical works and responsibility for paying for infrastructure shared with later phases will determine how much capital is actually committed before demand for the larger project is established.

What to watch

Watch for Pampa's targeted initial agreements by year-end, particularly the first committed load, electricity terms and responsibility for electrical works. A first-phase project budget would show whether the 20–40MW pilot genuinely limits early spending or requires infrastructure sized in advance for a much larger development.