Pampa Energía offers 800 MW from Vaca Muerta for AI data center deployment

Pampa Energía CEO Marcelo Mindlin announced during Argentina Week in Paris that the company can allocate up to 800 MW of electrical generation capacity for future data centers in the Vaca Muerta shale formation. The offer centers on the Central Térmica Loma La Lata in Neuquén province, which operates 780 MW of gas-fired generation capacity. Pampa clarified that this power will become available within months specifically for AI data center applications, though no anchor client has been confirmed.

The strategic rationale rests on converting Vaca Muerta natural gas into electricity at the production source rather than transporting the commodity long distances before value creation. Mindlin emphasized that Pampa, already Argentina’s largest private power generator with 5,207 MW installed capacity nationwide, possesses both energy resources and available land parcels adjacent to the second-largest global shale gas reserves. The company operates 4,016 MW of thermal generation across the country, plus the 285 MW Pichi Picún Leufú hydroelectric facility in Neuquén.

Mindlin framed the initiative around a fundamental shift in AI infrastructure constraints. He noted that two years ago, when Pampa began studying AI implementation, processor chips represented the critical bottleneck. That dynamic reversed as chip supply expanded 30-40 percent annually while new power generation requires four to five years minimum for permitting, construction and grid connection. Building new transmission lines demands four to eight years against one to three years for data center construction, creating temporal mismatches that favor locations with existing excess generation capacity.

Global context supports the urgency. Goldman Sachs projects the five major US hyperscalers will deploy $1.2 trillion in AI infrastructure during 2027, up 50 percent year-on-year, with cumulative spending reaching $7.6 trillion through 2031. Energy availability, labor and high-bandwidth memory chips constitute the three constraints that could limit this expansion, according to analyst assessments.

Reuters reported in September that Pampa is evaluating an initial pilot project of 20-40 MW near Loma La Lata, potentially scaling to 500 MW. The full electrical infrastructure for maximum build-out could require approximately $900 million investment. The gap between this figure and Mindlin’s 800 MW statement reflects available capacity versus committed project scope. Pampa is currently pricing power agreements with interested parties, targeting initial contract closure before year-end 2026.