Argentina is looking to expand its nuclear energy sector by partnering with a US investor and utilizing small modular reactor (SMR) technology. This shift, as per a key advisor to President Javier Milei, may end a previous Chinese project planned for the same location.
Demian Reidel, the official overseeing the country’s nuclear energy policy, shared that Milei plans to allocate a site in Buenos Aires province for a new 1.2GW nuclear project. This initiative, designed by the Argentine research facility Invap, will rely entirely on foreign private investment.
Reidel mentioned, “The design is Argentine, and the capital will be American—100% private direct foreign investment.” He expressed optimism about initiating construction by 2030, with hopes of establishing Argentina as an exporter of SMR technology in the future.
The government revealed its ambitious strategy to enhance nuclear power generation and boost uranium mining capabilities, aiming to attract technology firms interested in setting up energy-heavy data centers, particularly in the cooler southern regions of the country.
“My dream is to create a Nuclear City in Patagonia, where projects can be plugged in,” Reidel said. He emphasized that the significant energy demands of data centers can be effectively met by nuclear energy, which is clean, stable, and scalable.
Investments in potential data centers are already under consideration, with announcements expected by 2025. Meanwhile, these projects could utilize energy derived from the rapidly expanding shale gas production in Patagonia.
Previously, Milei’s left-wing predecessor signed a $8.2billion deal for a conventional reactor, Atucha 3, funded by China, planned for the same area as the new SMR project. While Milei has softened his stance on China, he remains committed to a pro-US approach and opposes state-funded infrastructure projects.
With three state-owned plants generating 8% of its electricity, Argentina has a considerable nuclear energy foundation—being the most developed in Latin America—despite currently lacking any uranium production. A Canadian firm has advanced plans for uranium extraction, recently acquired by Corporación America, where Milei once worked as an economist.
Experts believe Argentina has the potential to become a vital player in the next generation of nuclear reactors. “This is a viable idea. Argentina possesses the expertise, land, and uranium resources,” said Julián Gadano, a former nuclear energy secretary, noting the country could be among the first to adopt SMR technology.
Globally, there are currently 80 SMR projects in development as companies rush to produce commercially viable prototypes that promise lower costs and increased safety compared to traditional nuclear reactors.
However, challenges remain. Gadano highlighted a significant obstacle: “Investor trust in Argentina and our infrastructural limits, like the lack of a comprehensive broadband network, could delay progress.”
Many foreign investors are pausing until they see Milei ease capital controls and assess the performance of his libertarian coalition in the upcoming midterm elections in 2025. Nonetheless, an incentive scheme for large investments has already drawn around $7.8 billion in energy and mining commitments in 2023.
Additionally, the International Atomic Energy Agency recently signed a memorandum supporting Argentina’s nuclear initiatives.
Alfredo Caro, a research professor at George Washington University, praised Invap’s SMR design as being competitive on a global scale. However, he cautioned that expanding nuclear energy could face hurdles due to budgetary issues from Milei’s austerity measures impacting government-run nuclear agencies and educational institutions.
Despite these concerns, Reidel, a graduate of the Balseiro Institute, believes that private sector involvement could revitalize the industry as the government reduces its economic role. “We’re committed to fiscal responsibility and a business-friendly environment,” he asserted. “We’re open for business.”