Argentina proposes regulatory exemption and tax reduction to attract AI and data centers in Patagonia
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Olhar Digital
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Argentina proposes regulatory exemption and tax reduction to attract AI and data centers in Patagonia

Argentina seeks to establish Patagonia as an artificial intelligence-focused data center hub. To attract large technology corporations, President Javier Milei has proposed reducing taxes and keeping AI free from regulatory restrictions.

This initiative has generated interest from companies such as Amazon, Google, and OpenAI, but it has also sparked debates about the environmental impacts and the benefits these investments will bring to the local population.

The region possesses ideal characteristics for the installation of these data centers, including vast available land areas, mild climate, strong winds, and access to gas derived from the Vaca Muerta shale formation, a resource that can be used for both energy production and facility cooling.

While communities in the United States and Europe contest new projects due to competition for electricity, the Argentine government is trying to capitalize on these advantages to entice investors. In a meeting held last month with the US Chamber of Commerce, Milei stated categorically: 'We will not regulate artificial intelligence. We will let it be free.'

Visit records provided by the Associated Press indicate that representatives of investors and industry companies met with the president and his team in recent months. Among those present were investor Peter Thiel and delegates from OpenAI, Amazon, Google, and Oracle.

The movement also involves the data center developer Crusoe, which approached Argentine authorities this year to discuss investments supported by the United States government. This company has already participated in the construction of OpenAI's main campus in Texas.

Another project under negotiation is that of Green Capital, a Polish company, which intends to invest US$3 billion (approximately R$16.05 billion) in a complex in Patagonia. This complex would be leased to large technology companies for AI processing, although it does not yet have a defined client.

To make projects of this magnitude viable, Milei advocates for a program that would reduce the corporate income tax rate from 25% to 15% for investments of at least US$1 billion (about R$5.45 billion) directed towards artificial intelligence and other emerging sectors. However, this proposal is still awaiting approval from the Senate.

It is important to note that this tax incentive imposes no reciprocal obligations regarding the use of infrastructure within the country itself. Companies are not required to reserve computational capacity for the Argentine market, nor do they need to report the volume of water and energy their ventures will consume.

The discussion about technological sovereignty concerns researchers and environmentalists. Alan Rocha Varsanyi, a member of the Argentine group Observatorio Petrolero Sur, assesses that the processing capacity will be mainly destined for the international demand of contracting companies, rather than for local technological advancement.

The lack of regulation also raises fears about risks such as cyberattacks and mass surveillance. Nicolás Wolovick, a computer science professor at the National University of Córdoba, expresses concern that the country could become a testing ground for technologies that would not be evaluated in more controlled markets.

In the province of Chubut, Green Capital plans to install its complex in an area of 130,000 hectares, leased from 14 rural landowners. Among them is the family of Francisco Sáenz, an agricultural engineer and sheep breeder, who sees in the venture a new source of income against the decline of livestock farming.

Construction is not expected to begin before 2028. When operational, the campus could demand, in a single year, about 2.7 times more electricity than was consumed by the entire city of Buenos Aires in 2025, according to an Associated Press estimate.

Green Capital assures that it will generate its own electricity through wind turbines, solar farms, and gas generators. Provincial authorities expect the project to attract billions in investment, generate specialized jobs, and create a market for excess wind energy.

However, the assurances presented have not yet convinced all residents of Trelew, a city near the proposed site. Environmental studies are underway, licenses remain pending, and the company has not specified water consumption or the participation of gas in energy generation.

The lack of information has motivated in-person and virtual protests under the slogan 'Trelew Free of Data Centers.' The resistance has also reached Congress, where the opposition managed to alter a proposal to relax rules on foreign land ownership and block Milei's plan that would allow artificial intelligence agents to control companies.

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Google expands AI Mode ads to ten new countries, including Brazil in 2026

Google announced the expansion of ad display in Search's AI Mode to ten new nations, placing Brazil among the markets that will receive this feature by the fourth quarter of 2026. This measure aims to increase the visibility of advertising in searches conducted through artificial intelligence (AI), keeping pace with the transformation in how users search for products and information on the internet.

Shashi Thakur, Vice President and General Manager of Google Search Ads, detailed that queries made in AI Mode tend to be, on average, three times longer than conventional searches. The company argues that this conversational format aids in a deeper understanding of user needs, allowing for the presentation of relevant offers.

Besides Brazil, the expansion schedule covers Australia, Canada, India, Kenya, Malaysia, New Zealand, Nigeria, Pakistan, the Philippines, and Singapore. Additionally, the company plans to introduce the feature in Mexico and the United Kingdom this quarter.

This expansion coincides with the integration of AI experiences into Google's main search service. Users are no longer solely dependent on short keywords but can now describe scenarios, compare options, and ask sequential questions to refine their searches.

For advertisers, this new pattern of behavior offers the opportunity to display their services and products at more precise points in the buying journey. However, for users themselves, the challenge arises of differentiating advertising recommendations from organic information, even when ads are embedded in an AI-based search experience.

Google assured that it will continue testing different formats to ensure that ads remain relevant and useful. Although the forecast for Brazil is the fourth quarter of 2026, the company did not specify an exact date for the implementation of the feature in the country.

The future of AI will be determined by a combination of various models, not one dominant technology
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olhardigital.com.br

The future of AI will be determined by a combination of various models, not one dominant technology

In recent years, the development of artificial intelligence has been perceived as a technological race, where after each launch, new comparisons, benchmark tables, and predictions emerged about which company was approaching leadership in the next major digital transformation. It often seemed that the entire debate boiled down to one question: which model is the best at the moment?

However, after a recent immersion in Silicon Valley, the author got the feeling that this question, while still relevant, is no longer central. Part of this understanding stems from the fact that he visited Silicon Valley almost ten years after his first visit.

There is something interesting about immersing oneself in an ecosystem that unites some of the world's most influential companies, investors, and universities. Just as when traveling to any culture, we begin to absorb local peculiarities, in the US, especially in California, you inevitably become influenced by the speed of releases, technology consumption, and the constant feeling that the future is being built there.

Something similar is happening in Silicon Valley: there is a natural tendency to focus on themes dominating regional conversations and consider them an accurate reflection of the coming years. This often has a basis, as many significant technological changes of the last few decades took place there before reaching the rest of the world.

But any highly connected environment carries a risk: the risk of confusing consensus with absolute certainty. This is what attracted the most attention during the trip.

Unlike most public discussions about AI, few conversations revolved around competition between models or the search for the next technological leap capable of changing the market. A more frequent topic was how artificial intelligence is integrating into the products, processes, and operations of organizations, rather than which laboratory owns the most advanced system at the moment.

This shift in focus manifested differently throughout the week. Discussions with executives from Snowflake and Elementum, for example, were not about which model ranks highest or which company would release the next big thing. The discussion was focused on the transformation of enterprise software. The general consensus was that a phase is beginning where intelligent agents start interacting directly with large volumes of data, performing tasks that previously required manual navigation through systems, report analysis, and making several operational decisions by a human.

For decades, most enterprise software was created to organize information and facilitate human labor. Now, there is an expectation that these systems will not just present information but also act upon it. This may be one of the most important changes brought about by AI. The impact is not only in the technology itself but also in how companies begin to function. For the first time in many years, the discussion seems less related to the tool being used and more to the ability to quickly, integratively, and efficiently turn data into action.

At the same time, some visits showed that not everyone follows the exact same path. For instance, at Liquid AI, there was a viewpoint contrasting with most popular narratives in the sector. While a large part of the industry continues to bet on ever-larger models and ever-more powerful infrastructure, this company is developing more compact systems designed for local operation on devices such as mobile phones, vehicles, and onboard equipment.

The interest in this concept is not just in the technology itself. It reminds us that innovation does not happen in one direction. There is a natural inclination to link technological progress with increased computational power, investment, and model size. However, in many cases, the task is precisely the opposite: creating more efficient, accessible, and easily integrated solutions into people's daily lives and businesses.

Perhaps this was one of the main lessons of the trip. When we look at the AI market from afar, it seems like there is one race going on. But when we look closely, we realize that many different races are happening simultaneously. There are large generative models; there are specialized systems; there are multimodal applications combining text, image, audio, and video; there are enterprise solutions designed to solve very specific problems; and there are companies betting on making all of this easier and more distributed.

Therefore, the idea that the market will move towards one dominant technology is becoming less likely. A scenario of coexistence of different approaches is emerging, each suited for specific contexts, constraints, and needs.

This shift is also changing how organizations approach technology strategy. For a long time, the logic was relatively simple: find the best available tool and implement it. With the advent of AI, the equation includes a number of other variables. Issues of integration, governance, privacy, speed of adoption, operational costs, and business compliance are becoming as important as the complexity of the chosen technology.

In practice, a company may gain much greater value from a simple, well-integrated solution in its processes than from using extremely advanced technology in isolation. Perhaps this is why the discussion of implementation is taking up more space than the discussion of capabilities.

Another aspect that caught attention was the frequent turning of technological conversations into conversations about people. This became particularly evident during the visit to Stanford. Despite the university being in one of the most advanced ecosystems in the world for AI, a significant part of the discussions remained focused on topics such as education, talent development, shaping organizational culture, and leadership development.

This does not seem coincidental. The history of Silicon Valley has never been exclusively a story about technology. It has always been deeply connected to the ability to transform knowledge into innovation. Tools change. Platforms change. Companies appear and disappear. But preparing people who can learn, adapt, and create remains a constant element.

This point becomes even more relevant as AI becomes accessible to more and more organizations. Access to the technology, naturally, tends toward democratization. Knowledge of how to use it strategically, however, remains a difficult-to-replicate advantage.

The systematic implementation of AI requires much more than just hiring a platform or providing new resources to teams. It requires rethinking processes, developing competencies, revising workflows, creating oversight mechanisms, and preparing people to work in an environment where part of the analysis, decision-making, and execution is supported by intelligent systems.

Therefore, the main takeaway the author had after this experience is not about which company will lead the AI race or which model will become the standard in the coming years. The feeling is that we are leaving the phase where the center of discussion was isolated technology and entering a stage much more focused on practical application. The next phase of AI will not be defined by one revolutionary model replacing all others. It will be built on a combination of various technologies, the ability to integrate them into existing processes, and most importantly, the ability of organizations to turn these capabilities into tangible results.

Ultimately, artificial intelligence remains a technological topic. But after so many conversations during the trip, it is hard not to conclude that it is increasingly turning into a discussion of strategy, execution, and organizational adaptation. Perhaps this is why the most important question is no longer who possesses the most advanced AI. The question that seems to be gaining more importance is another: who will be able to use it better.

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